During the year under review, the demand in the textile market decreased owing to the appreciation of the renminbi, the decrease in the export tax refund rate and macroeconomic control measures. Revenue of the Group decreased 6.2% to RMB18,590,000,000 compared with 2006. Gross profit decreased 19.9% to RMB2,662,000,000. Net profit attributable to shareholders rose 10.9% to RMB1,868,000,000. Basic earnings per share were RMB 1.56, 9.1% higher than that of last year. The Board of Directors proposed a final dividend of approximately RMB0.50, up 13.6% compared with 2006.

Commenting on the annual results performance, Ms. Zhang Hongxia, Chairman of Weiqiao Textile, said, “In 2007, reductions in exports and the rises in production costs led to more intense market competition. The appreciation of the renminbi, the changes to the export tax refund policy and a rise in raw materials costs all posed certain challenges for the textile industry in China. Despite poor market conditions, the Group achieved steady results in a challenging textile market, in part as a result of effective cost control measures. Leveraging on our economies of scale and technological transformation, we successfully increased operating efficiencies by improving equipment and facilities and optimizing our product mix.”

“This investment is a demonstration of INVISTA's commitment to bring innovation into existing markets and to seek value-adding offerings for new markets,” said Jeff Brown, vice president of INVISTA Performance Materials Nylon.

INVISTA believes that advances in technology and engineering of nylon 6,6 and modified nylon products will lead to the development of differentiated new products, offering valuable solutions in existing and new markets. Already a world leader in high-performance nylon fiber production, INVISTA’s Performance Surfaces and Materials business will use the new facility to continue in the direction of next-generation nylon technology.

“Waste reduction and efficiency improvements in our operations are important elements in our continued goal to conserve resources and enhance environmental stewardship,” said Brown. “This investment will not only be capable of generating step change innovation in new products, it will also be used to improve the output and yields of existing processes.”

INVISTA’s Performance Surfaces and Materials business provides innovative solutions for INVISTA’s global surface-focused segments including residential, commercial, area rugs, bedding, sheets, pillows and comforters; its automotive-focused segments such as airbags and automotive flooring; and its industrial nylon offerings. Consumer brands brought to market include STAINMASTER^® carpet, ANTRON^® carpet fiber and CORDURA^® fabric.