Texhong Intl Gp (02678.HK) announced that it expects to earn a net profit of approximately RMB 280 million for the six months ending June 30, 2024, while the group recorded a net loss of approximately RMB 740 million in the same period last year.

The group's expected net profit is mainly due to the recovery of demand in the textile market during this period compared to the same period last year, resulting in an increase in sales volume and a corresponding increase in capacity utilization. In addition, the relatively high stock price cost inventory was consumed and sold in 2023, and the gross margin of products during this period has gradually improved. On the other hand, due to the devaluation of the Vietnamese dong during this period, it is expected to record some exchange losses during the period.