Li Heng Chemical Fibre Technologies, the manufacturer of high-end nylon fibres, says it posted a 84.1% fall in net profit to RMB130.3 million ($26.8 million) for the year ending 31 December 2009 (FY09). Revenue was RMB2 billion, 46% lower than its corresponding period FY08.
Gross profit for FY09 was RMB250.9 million, 76.4% lower as compared to FY08, and for the same corresponding period, gross profit margin contracted to 12.6% from 28.7%.
As a result of the slowdown in the global economy in 2008, China’s textile and garment industry was inevitably affected which in turn led to price pressure on the group’s nylon yarn products. In FY09, group revenue decreased by 46% to RMB2 billion as compared to FY08.
