Wei Qiao Textile (02698): Mid-Term Performance Will Be Significantly Reduced

In July 7th, 02698.HK announced that its interim performance in the six months ended June 30, 2020 will be significantly lower than that in the same period in 2019 based on its unaudited management accounts.

(1) in the first half of 2020, due to the negative impact of the global new coronavirus pneumonia epidemic, the domestic and foreign textile market continued to be weak, resulting in a decline in demand for textiles. The sales volume of the group's cotton textile products decreased year by year, and the sales price also declined compared with the same period last year. (2) in the first half of 2020, though the group's electricity business maintained a profit, it was in the epidemic situation. Under the impact, electricity sales decreased year by year.

The board of directors will pay close attention to the overall industry dynamics of China's textile industry in the second half of the year. In line with the overall situation of the industry, it will promptly adjust the group's operation strategy, give full play to its own characteristics and advantages, and continue to make great efforts in managing innovation, reducing costs and increasing efficiency, R & D investment and green intelligence, so as to enhance the competitiveness in the domestic and foreign markets.