2016 Spinning Capacity of Texhong Group Reach 2.89 Million Spindles

For the year ended 31 December 2016, the revenue of the Texhong Group, with total annual production capacity of about 2.89 million spindles, 816 looms and 18 denim production lines, reached a record high of RMB13.65 billion, representing an increase of 29.1% y-o-y, principally driven by the growth in the sales volume of yarn.

Revenue of the Group comprises sales of yarn, grey fabric and garment fabrics as well as garments. During the year, yarn continued to be the major product of the Group, accounting for 92.5% of the Group’s total revenue for the year, amounting to RMB12.63 billion and representing an increase of 28.4% on the year. New capacity of approximately 630,000 spindles from the production plants of the Galaxy project in Vietnam and the Xinjiang project commenced full production successively in 2016. For the year ended 31 December 2016, driven by the expansion of production, the Group’s yarn sales volume increased by 25.7% to a historical high of about 600,000 tonnes when compared to last year.