Texhong International Group boosts profit in H1 2025 despite revenue dip

Texhong International Group Limited reported a profit of RMB463.510 million for the six months ended June 30, 2025, a significant increase from RMB285.487 million in the same period of 2024 (restated). Profit attributable to owners of the company rose to RMB418.834 million (H1 2024 restated: RMB273.156 million), with basic earnings per share improving to RMB0.46 (H1 2024 restated: RMB0.30). Total revenue for the period was RMB11,034.056 million, a slight decrease from RMB11,243.529 million in H1 2024. The gross profit margin increased from 13.2% in H1 2024 to 14.2% in H1 2025.

The group's balance sheet remains solid, with total assets reaching RMB21,160.378 million as of June 30, 2025, up from RMB20,790.512 million at December 31, 2024 (restated). Total equity also increased to RMB10,292.141 million from RMB9,957.070 million. The gearing ratio improved to 51% from 52% at the end of last year, reflecting the group’s strategic reduction of bank borrowings to optimize its asset-liability structure.

Segment-wise, yarn sales volume increased by approximately 3.6% to 385,437 tonnes, and woven garment fabric sales volume grew by approximately 17.0% to 51.0 million meters, largely due to overseas market recovery and a flexible raw material procurement strategy. However, knitted garment fabric sales volume decreased by 37.8% to 3,840 tonnes. Non-woven fabric sales revenue nearly doubled, increasing by 95.8% to RMB69.065 million.