TEXHONG INTL GP (02678) announced its interim results for the six months ended June 30, 2025, reporting revenue of RMB 11.034 billion, down 1.86% year-on-year. Shareholders' attributable profit reached RMB 419 million, representing a 53.33% increase compared to the same period last year. Basic earnings per share stood at RMB 0.46.

According to the announcement, the group's revenue is primarily driven by yarn sales, while its downstream business focuses mainly on woven fabric sales targeting overseas markets. During the review period, yarn sales revenue decreased by approximately 2.2% to around RMB 8.6222 billion compared to the same period last year, mainly due to lower average selling prices. Meanwhile, woven fabric sales revenue surged significantly by approximately 17.9% year-on-year, causing yarn sales' contribution to total revenue to decline slightly from 78.4% in the previous year to 78.1%.

Examining industry consumption trends, the growing popularity of outdoor sports has driven sustained demand for functional sportswear. Consumers' increasing focus on textile functionality, health benefits, and environmental sustainability continues to push the yarn industry toward differentiation and premium positioning, creating structural growth opportunities for relevant yarn products.

During the review period, the group actively capitalized on these market opportunities by developing products that meet market demand, driving yarn sales volume up by approximately 3.6% to around 385,000 tons compared to the same period last year. The group's yarn order volume and capacity utilization rates, particularly at overseas facilities, improved compared to the previous year. Combined with flexible raw material procurement strategies, this drove the average gross margin for yarn to increase significantly from 12.5% in the same period last year to 13.9% during the review period.