China Textiles: There is room for increase in gross profit margin next year, research and acquisition of small yarn factories

Zheng Hong, Chairman and Executive Director of China Textiles (03778), said after attending the listing ceremony that he was encouraged by the stock price of today's listing. He explained that the group's gross profit margin fell this year, mainly due to the increase in raw material prices. In order to maintain the relationship with long-term customers, the cost was not reduced. Passed on completely, and pointed out that next year the group's production capacity will increase, and new products will be launched, and there will be room for increase in gross profit margin?
As for whether the price increase will depend on market conditions, he also pointed out that the group is a leading company in Jiangxi Province, with a large scale, so it has bargaining power, and that the group's performance in the past few months has been good?
The group also plans to expand two production lines from 2012 to 2013, mainly focusing on environmental protection. In addition, it will also consider acquiring high-growth small yarn factories in Jiangxi Province to expand its business?
He also pointed out that the group's products are mainly domestic demand, and the labor force in Jiangxi Province is high, which guarantees production and is confident in the future development of the group?