TEXWINCA HOLD (00321) issues profit warning, expecting interim consolidated profit attributable to shareholders to decrease by approximately 50% to 60% year-on-year

TEXWINCA HOLD (00321) announces that the Group expects to record a consolidated profit attributable to ordinary equity owners of the Company for the six months ended 30 September 2026 to decrease by approximately 50% to 60% compared with the same period in 2025. The expected decline in profit is primarily attributable to, among other things, (i) pressure on the gross profit margin of the textile and garment business, caused by continued macroeconomic uncertainty, persistently high international crude oil prices, and rising raw material, energy and logistics, and labor costs. Despite recording higher order volumes, profitability was further affected by the appreciation of the RMB against the US dollar and competitive pressure on sales price adjustments, resulting in the inability to fully pass on increased costs; however, part of the impact was offset by (ii) improvement in the operating performance of the retail and distribution business.