Major Chinese Cotton Textile Makers Report Losses or Profit Declines in Q1 Due to Coronavirus

The recently disclosed January-March 2020 earnings reports of four Chinese cotton textile manufacturers indicated that their business fell into the red or sharp profit decreases during the quarter, as the impact of the coronavirus delayed the restart of operations after the Chinese New Year holidays. Since the virus has been spreading overseas since March, their business results might worsen further after April.
Huafa Fashion Co., Ltd., a major maker of yarn-dyed fabrics, fell into the red with net losses of 15-35 million yuan in the first quarter of this year, as compared with profits of 172 million yuan in the year before. The company suffered from the impact of the coronavirus and decline in cotton prices.
Jiangsu Lianfa Textile Co., Ltd., which handles everything from cotton harvesting to spinning, yarn dyeing, weaving, knitting, fabric dyeing and garment making, had net profits of 125.9-117.25 million yuan, which is a decrease of 40-60% compared to the first quarter of 2019. The main factor was the decrease in the value of financial assets.
Henan Xinye Textile Co., Ltd., which produces cotton and blended yarns, yarn-dyed fabrics and home textiles, reported that its net profits dropped 16.2-22.6% to 60-65 million yuan.
Anhui Huamao Textile Co., Ltd, which produces spun yarns, gray and dyed fabrics and functional industrial fabrics, reported net losses amounting to 160-180 million yuan. In the quarter of last year, the company gained profits of 423.4 million yuan. In addition to the coronavirus, its financial business was sluggish.