Zhitong Finance APP News, Chaoying International Holdings (02111) released its 2017 annual results, revenue increased by 13.2% year-on-year to HK$2.79 billion; gross profit decreased by 6.7% year-on-year to HK$772.7 million; net profit decreased by 33.5% year-on-year to HK$303.6 million; The revenue is 29.45 HK cents, and the final dividend is 5.9 HK cents per share.

According to the announcement, revenues have reached a new high since the listing of the company. However, due to the decline in sales sold to female underwear customers and the more competitive prices that were required during the downturn, growth is still not as good as expected for 2017. As the public is paying more and more attention to health, the manufacture and trading of elastic fabrics continues to benefit from the market's strong demand for comfortable and highly functional sports-related products.

With the company's strong research and development capabilities, it further penetrates into existing and new customer bases. In 2017, the revenue of elastic fabrics was HK$1.768 billion, an increase of approximately 15.8%. During the reporting year, revenue from elastic fabrics for sportswear increased by approximately 74.9% to approximately HK$797 million. Revenue of the flexible webbing also increased by approximately 13.1% to approximately HK$942 million during the reporting period, as a result of the team's efforts to cross-sell and expand the Group's market share.

However, due to the market demand for lace with a simpler and lighter style and lower selling unit price, Lace's revenue was approximately HK$85.6 million in the reporting year, representing a year-on-year decrease of approximately 22.3%.

In addition, due to the appreciation of the RMB against the US dollar during the year was about 6%. At the beginning of September 2017, the exchange rate of the RMB against the US dollar reached an annual high and remained relatively high until the end of the year. Since most of the Group's products are manufactured in China and exported to overseas customers in US dollars, the appreciation of the RMB against the US dollar further weakens the profit margin.