中文

Despite the coronavirus disease identified in late 2019 (“COVID-19”) continued to affect many countries in terms of travel restrictions, economic activities of many countries have gradually rebounded from the trough of 2020.

China successfully contained the situation and reported an enviable GDP growth in the Year, at a rate of 8.1%. The total export of textile yarns, fabrics and related products from China recorded a reduction of 5.6% in value in US dollars term during the Year, according to the statistics of the General Administration of Customs of the People’s Republic of China (the “PRC” or “China”). The market price of cotton increased by 47.7% in 2021 which may exert positive influence to the market demand of linen yarn.

According to the statistics of the General Administration of Customs of the PRC, the total volume of pure linen yarn exports from China in 2021 surged by approximately 52.3% year-on-year, and Kingdom exported 14,138 tonnes, accounting for 60.4% of the total export volume of pure linen yarn from China.

In the trough of the economic cycle, the low level of cotton yarn price may lead to a reduction in demand for pure linen yarn from fashion brands and garment manufacturers, which may favour cotton or cotton/linen blended yarn at such times to enable products made of these materials to be more appealing to relatively cost-conscious consumers. However, if the price factor is being put aside, the market has proven that pure linen yarn is a preferred choice over linen mixed yarn. For years, the Group has been focusing on upholding excellent quality and offering tailored customer services. As such, the Group has always been a key partner of major overseas linen fabric and garment manufacturers.

During the Year, the Group’s pure linen yarn exports amounted to 14,138 tonnes (2020: 7,640 tonnes). The Group continued to account for more than 40% of the total pure linen yarn export from China, signifying the Group’s continuous leading position as the largest pure linen yarn exporter in China for 19 consecutive years.

Revenue of the Group for the Year surged by approximately 70.2% year-on-year to RMB1,799,690,000 (2020: RMB1,057,426,000). Gross profit increased by approximately 216.4% year-on-year to RMB339,528,000 (2020: RMB107,297,000) and overall gross margin increased to 18.9% in 2021 (2020: 10.1%). Profit for the Year was RMB90,500,000, as compared to a net loss of RMB12,678,000 for the year 2020. Basic earnings per Share amounted to RMB0.14 during the Year as compared to basic loss per Share of RMB0.02 in 2020.