Jingwei Textile Machinery posts huge jump in full-year earnings

Hong Kong-listed Jingwei Textile Machinery has posted a massive 1,046 per cent rise in net profit for last year to 88.15 million yuan (HK$82.43 million), up from 7.69 million yuan in 1998.

The sharp earnings increase by the mainland's largest textile-machinery maker was helped by increased demand for textile machinery and a recovery in sthe mainland textiles market, the company said.

Turnover nearly doubled to 803.58 million yuan from 409.63 million yuan in 1998.

Earnings per share were 21 fen, compared with two fen previously.

Chairman Yin Shouen said: 'The increase in demand for textile machinery was led by the general improvement in the textile market.' The company's asset exchange accomplished last year also brought great improvement to production and marketing efficiency, yielding an increase of 170 million yuan in revenue and 27 million yuan in net profits, Mr Yin said.

It acquired a 98 per cent stake in each of the Zhengzhou Hongda, Qingdao Hongda, Shenyang Hongda, and Tianjin Hongda textile machinery companies from its parent in exchange for four ailing operations.

In addition, the launches of some new products had expanded the company's share in the textile market and increased export, Mr Yin said.