Group 1 - The company reported a revenue of 11.034 billion RMB for the six months ending June 30, 2025, representing a year-on-year decrease of 1.86% [1] - Shareholder profit increased by 53.33% to 419 million RMB, with basic earnings per share at 0.46 RMB [1] - Yarn sales, which primarily contribute to revenue, saw a decline of approximately 2.2% to about 8.622 billion RMB due to a decrease in sales prices [1] Group 2 - The sales revenue from woven fabrics significantly increased by approximately 17.9% compared to the previous year, leading to a slight decrease in the proportion of yarn sales in total revenue from 78.4% to 78.1% [1] - The company is capitalizing on market trends, with a growing demand for functional sportswear driven by the increasing popularity of outdoor activities [1] - The focus on the functionality, health, and environmental aspects of textiles is pushing the yarn industry towards differentiation and high-end transformation, creating structural growth opportunities for yarn products [1] Group 3 - The company successfully increased yarn sales volume by about 3.6% year-on-year, reaching approximately 385,000 tons [1] - Yarn order volume and capacity utilization, especially in overseas factories, improved compared to the previous year [1] - A flexible raw material procurement strategy contributed to an increase in average gross margin for yarn from 12.5% in the previous year to 13.9% during the review period [1]

Core Viewpoint - Tianhong International Group reported a slight decrease in revenue but a significant increase in net profit for the six months ending June 30, 2025, indicating a positive trend in profitability despite revenue challenges [1] Group 1: Financial Performance - The company recorded a revenue of 11.034 billion RMB, a year-on-year decrease of 1.86% [1] - Shareholder profit attributable to the company was 419 million RMB, reflecting a year-on-year increase of 53.33% [1] - Basic earnings per share were 0.46 RMB [1] Group 2: Sales and Product Performance - Yarn sales, which primarily contribute to revenue, saw a decrease of approximately 2.2% year-on-year, totaling around 8.622 billion RMB [1] - Sales revenue from woven fabrics significantly increased by approximately 17.9% year-on-year, slightly reducing the proportion of yarn sales in total revenue from 78.4% to 78.1% [1] - The company managed to increase yarn sales volume by about 3.6% year-on-year, reaching approximately 385,000 tons [1] Group 3: Market Trends and Strategic Response - The demand for functional sportswear is rising due to the increasing popularity of outdoor activities, leading to a structural growth opportunity in the yarn industry [1] - Consumer focus on the functionality, health, and environmental aspects of textiles is driving the industry towards differentiation and high-end transformation [1] - The company has actively captured market opportunities by developing products that meet market demands [1] Group 4: Operational Efficiency - The company experienced an increase in yarn order volume and capacity utilization, particularly in overseas factories, compared to the same period last year [2] - A flexible raw material procurement strategy contributed to an increase in average gross margin for yarn from 12.5% to 13.9% [2]