Texhong Textile (F.Y. 2024-25)
Executive Summary
Texhong International Group Limited is one of the biggest cotton textile makers out there. The textiles, yarns, fabrics, and many others that the company makes are sold internationally. This company operates several plants located in various parts of the world such as Asia (China, Vietnam), Europe (Turkey), and America. During 2025, in difficult economic times, Texhong was able to earn profits even amid trade difficulties. It made revenues amounting to RMB 22.7 billion along with a rise of 63.4% in net profit amounting to RMB 972.2 million. Yarn remains their biggest source of revenue. For the future, they've got plans to grow their Vietnamese plants, dive deeper into digital tech and automation, back sustainable energy endeavors, and target high-end textile goods. All this should help them keep up their long-term growth and boost shareholder value.
Company Overview
Texhong International Group Limited (Stock Code: 2678) a global textile leader, was established in 1997 and was listed on the Hong Kong Stock Exchange. The company is specialized in the production and distribution of yarns, grey fabrics, garment fabrics and non-woven fabrics with a focus on high value added textile products. The Group has manufacturing facilities in China, Vietnam, Turkey and Americas and supplies to more than 5,000 customers worldwide. Its sales network covers major markets in Asia, Europe, North and South America. By 31 December 2025 Texhong had around 4.26 million spindles and over 1,700 weaving and knitting machines making it one of the world’s largest manufacturers of cotton textiles.
Industry overview
During 2025, the company faced environmental challenges due to geopolitical tension, uncertainty in trade policy, and customer spending. The company has a strong position in demand supply chain, and technology. China’s textile industry is a contributor to global production and export. Countries in southern Asia such as Vietnam have strengthened their role in the international supply chain.
Financial Performance (For the year ended 31 December 2025)
Particulars | 2025 (RMB’000) | 2024 (RMB’000) |
Revenue | 22,715,627 | 23,029,033 |
Cost of sales | (19,577,958) | (20,165,661) |
Gross profit | 3,137,669 | 2,863,372 |
Selling and distribution costs | (640,236) | (650,054) |
General and administrative expenses | (1,126,018) | (1,148,506) |
Net accrual of impairment losses on financial assets | (21,666) | (48,384) |
Other income | 204,813 | 186,907 |
Other losses — net | (170,928) | (10,420) |
Operating profit | 1,383,634 | 1,192,915 |
Finance income | 108,268 | 86,193 |
Finance costs | (274,458) | (474,186) |
Finance costs — net | (166,190) | (387,993) |
Share of profits/(losses) of investments accounted for using the equity method | 4,280 | (23,368) |
Profit before income tax | 1,221,724 | 781,554 |
Income tax expense | (249,546) | (186,490) |
Profit for the year | 972,178 | 595,064 |
Source :- Annual Report 2025 of Texhong Textile
Key Financial Ratio (For the year ended 31 December 2025)
Particulars | 2025 | 2024 |
Current Ratio | 1.42 | 1.40 |
Inventory turnover days | 85 | 87 |
Trade and bill receivables | 27 | 29 |
Trade and bill payables | 57 | 72 |
Net debt to equity ratio | 0.28 | 0.37 |
Return on equity | 9% | 6% |
Debt to equity ratio | 0.53 | 0.68 |
Gearing ratio | 0.48 | 0.52 |
Source :- Annual Report 2025 of Texhong Textile
SWOT Analysis
Strength 1.This company is one of the worlds largest cotton textile manufacturers. 2. The company has production bases in China, Vietnam, Turkey, and the Americas which will reduce supply chain risks. 3.The company has a strong focus on high-value added. | Weaknesses 1.The company highly depends on the textile industry. 2.During 2025, the company’s revenue will decline. 3.The company performance is affected by changes in cotton prices and raw material prices. |
Opportunities 1.The Company is growing demand internationally for sustainable, functional and high-performance textile. 2.The company is adopting AI, Automation. | Threats 1.There is geopolitical tension and trade restrictions. 2.There is high competition from the textile industry in Asia and low-cost regions. |
Conclusion
Texhong International Group Limited is one of the leading textile industries in the world. During 2025, the company has strong performance. The company faces challenges such as uncertainty in the global economy, improving in production efficiency, and has a strong manufacturing network. The company has increased its profitability. The company focuses on producing high-quality textile products, adopting new technology, and sustainability. This all helps the company to grow in future. The company is also investing in automation, digital transformation which will help the company to grow in future.