Huafeng Spandex expects Q1 profit down 50%

Zhejiang Huafeng Spandex Corp<002064>, China's leading spandex producer, is likely to see a loss of 50% year-on-year in profit in the first quarter of 2008, said the company in a statement with the Shenzhen Stock Exchange.

The Wenzhou, Zhejiang province-based company said the sales is discouraged as the spandex production capacity is rapidly expanding, especially in the domestic market. The appreciation of RMB and the tax rebate cut for dry goods exports also brought a negative impact on the sales.

Established in 1999 with a registered capital of RMB 185 million, Huafeng Spandex is engaged in the spandex production, sales under a brand of Qianxi. It positioned itself the country's first public traded spandex maker after listing in Shenzhen in 2006.

Spandex is a chemical fiber with high flexibility, which is mainly used to make top-grade underwear, sports suits, business suits and medical-used bandages.