Texhong International Group Limited provided earnings guidance for the six months ending 30 June 2024. For the period, the company expects to record a net profit of about RMB280 million for the six months ending 30 June 2024, as compared to the net loss of the Group for the six months ended 30 June 2023 of approximately RMB740 million. The Group expects to record a net profit mainly due to the recovery in demand in the textile market, an increase in sales volume as a result, and a corresponding improvement in the utilization of production capacity in the Period when compared with the same period last year, such that, coupled with the consumption and sales of relatively high-cost inventories in 2023, the product gross profit margin has gradually improved during the Period.

On the other hand, due to the depreciation of Vietnamese Dong during the Period, certain exchange losses are expected to be recorded for the six months ending 30 June 2024.