Texhong profits surge despite revenue dip in first half

Texhong International Group Limited reported a 1.9% decrease in revenue to RMB11.0 billion for the six months ended 30 June 2025, down from RMB11.2 billion in the same period last year. Despite this, the company saw a notable increase in its gross profit margin, rising by 1.0 percentage point to 14.2%. Net profit for the period surged to RMB463.5 million, up from a restated RMB285.5 million in 2024. Profit attributable to owners of the company also increased substantially to RMB418.8 million, compared to a restated RMB273.2 million previously.

Basic earnings per share improved to RMB0.46, an increase from the restated RMB0.30 in the prior year. The group's gearing ratio stood at 51% as of 30 June 2025, a slight improvement from 52% at the end of 2024. Capital expenditure for the period amounted to approximately RMB340.0 million, primarily allocated to equipment upgrades and factory renovations.

The group's strategy of optimizing product mix and exploring overseas markets contributed to increased sales volumes for main products, leading to improved gross profit margins. Notably, yarn sales volume increased by 3.6% to 385,000 tonnes, while woven garment fabric sales volume rose by 17.0% to 51.0 million meters.