Fengzhu Textile released its 2026 interim report after market close on August 28. Revenue reached 466 million yuan, up 9.19% year on year, but net profit attributable to the parent was only 1.29 million yuan, down 83.73% year on year, while non-GAAP net profit showed a loss of 1.94 million yuan. The profit decline was mainly due to lower gross margin and additional depreciation at the Henan plant. As of the end of June, the company's gross margin was 13.08% and net margin was only 0.28%. Accounts receivable stood at 156 million yuan, more than 1,000% of net profit attributable to the parent, while inventory was 246 million yuan. Cash of 170 million yuan was insufficient to cover short-term liabilities of 212 million yuan. Revenue has declined for four consecutive years since the 2021 peak of 1.30 billion yuan, and net profit has fallen for two straight years. Industry insiders noted that the flexible-support rooftop solar project at the Andong new plant, the first of its kind in China's textile industry, generates about 6 million kilowatt-hours of electricity annually, which can reduce electricity costs over the long term and become a future growth driver.
Fujian Fynex Textile Science & Technology Co LtdNet profit plunges 83.73% due to lower gross margin and additional depreciation.
