天虹国际集团二零二三年年报

(Incorporated in the Cayman Islands with limited liability)Stock Code2678 ANNUAL REPORT2023 TABLE OF CONTENTS目錄 1360236034 企業簡介CORPORATE PROFILE CORPORATE PROFILE 26785,0004181,700 Texhong International Group Limited (formerly known as TexhongTextileGroup Limited)(the“Company”,together with itssubsidiaries, the “Group”) (stock code: 2678) is one of the globallargestcotton textile manufacturers and is a leading textileenterprise focusing on manufacturing high value-added core-spuntextileproducts.The Group is principally engaged in themanufactureand distribution of quality yarns,grey fabrics andgarment fabrics. Since 1997, the Group has grown rapidly and hasover 5,000 customers in the People’s Republic of China (“China” or“the PRC”) and overseas, with its sales network spanning acrossmany countries and regions around the world, including the PRC,Vietnam, North America, Europe, Brazil, Turkey, Bangladesh, Japanand South Korea. With its sales headquarter established in Shanghai,the Group has production bases in operation in the PRC, Vietnam,Turkey, the Americas respectively, with major production facilitiescomprising about 4.18 million spindles and about 1,700 weavingand knitting machines and the related dyeing equipment as of31 December 2023. Onbehalf of the Company’sboard of directors (the“Board”),I present the annual results ofthe Group for the year ended 31D e c e m b e r2 0 2 3 t o t h eshareholders of the Company. 本 人 謹 代 表 本 公 司 董 事 會（「董 事會」），向本公司股東呈列本集團截至二零二三年十二月三十一日止年度的全年業績。 Hong TianzhuChairman 主席報告書CHAIRMAN’SSTATEMENT 主席報告書（續）CHAIRMAN’S STATEMENT (CONTINUED) RESULTS In 2023, the global economy remained in a state of volatility, as themacro-leveltrends that had significantly impacted multipleindustries worldwide in 2022 have now trickled down to a moremicrolevel,yielding tangible consequences.The ongoinginternational geopolitical tensions, reduced trade and supply chainefficiencies and inflationary pressures have further amplified thecomplexities and difficulties that enterprises are facing. Being thefirst full year in the post-pandemic era for the domestic market,2023 has brought a renewed sense of vitality to the consumermarket after a long stagnant period. Still, the reality that must befaced included shifts in the global economic growth model, as wellas the post pandemic lifestyle and concept changes, which havegreatly affected consumer behavior and market sentiment. For thetextile and apparel industry in particular, apart from observing theoverall trend of consumption downgrade, we were also witnessing ashift in consumer preferences towards concepts such as sustainabledevelopment, ethical procurement and digitalization. These factorsallcontributed to major adjustments within the current supplysystem and order structure. Nonetheless, the domestic textile andapparel market has experienced a substantial recovery in 2023. Incontrast, the overseas markets remained relatively lackluster, withindustrydestocking efficiency falling short of expectations.Combinedwith the cautious sourcing strategy of downstreamretailers, such developments exerted pressure on the pricing powerand profit margin of the supply chain. Againstthis challenging backdrop,the Group recognises theimperativeof embracing adaptability and resilience to navigateshifting market dynamics and achieve long-term sustainable growth.Therefore, during the year ended 31 December 2023 (the “Year”), theGroupplaced substantial emphasis on controlling capitalexpenditures, optimising resources, and streamlining managementprocesses,all with the aim of fostering a healthier internalenvironment. For instance, the Group prioritised investments thatdemonstrate a clear potential for return on investment and alignstrategically with our long-term objectives. This approach aims topreserve financial flexibility and mitigate unnecessary risks. At thesame time, the Group focused its resources on product segmentswith better competitive advantages and higher market potential, andoptimised its product portfolio and marketing efforts accordingly.Furthermore, the Group sought to strengthen regional productioncapacity and bolster regional supply chain flexibility by promotingverticalintegration and fostering supplier partnerships,therebymitigatingrisks related to global trade volatility and improvingoperational flexibility. 主席報告書（續）CHAIRMAN’S STATEMENT (CONTINUED) 2272.994 Even though the efforts of all employees of the Group have led tosome progress, still more time is needed before the full results canbe manifested. In the first half of the Year, the Group focused onprocessing and resolving the legacy issues of the previous year,especially the impact of macro-level trends on all aspects of thebusiness. After a series of internal adjustments, the Group startedexperiencing positive changes and results in the second half of theyear. Regrettably, although operating performance improved in thesecond half of the year, the loss incurred in the first half o