Texwinca’s revenue falls, but profit rises on improving operations
Yarn maker Texwinca Holdings Ltd. (0321.HK) on Wednesday said its revenue fell in its latest fiscal year through March, but its profit still recorded strong growth on improvement in its retail and distribution business and other operations.
The company’s revenue fell 7.9% to HK$5.15 billion ($657 million) for its fiscal year through March from HK$5.59 billion the previous year, as the company cited uncertainty that weighed on global economic activity. But its profit rose 38.8% to HK$161 million in the latest year from HK$116 million in its fiscal 2025.
As the company improved its efficiency through measures like optimizing its retail network and boosting its e-commerce sales, it lowered its cost of sales by 11.6%, outpacing its revenue decline. That boosted the company’s gross margin by more than 3 percentage points to 26.7% in the latest fiscal year from 23.6% the previous year.
Texwinca shares rose 5.5% on Thursday to close at HK$1.15. The stock is up 83% over the last year.
By Doug Young
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