Chinese clothing announced its 2008 semi annual report today.

In the first half of the year, the company achieved operating income of 965 million yuan, an increase of 12.29% over the same period last year, net profit of -1248.62 million yuan, a year-on-year decrease of 124.62%, and net cash flow from operating activities decreased from 1 million 454 thousand and 300 yuan in the same period last year to -2746.13 million yuan, with earnings per share of -0.048 yuan.

In the first half of the year, the main reason for the sharp decline in corporate performance was the rise in prices of raw and auxiliary materials, the rise in labor costs, the appreciation of the renminbi and the change in fair value of trading financial assets held by companies.

In the first half of the year, the company's textile and garment trade and garment manufacturing and processing achieved 844 million yuan and 2 million 27 thousand and 800 yuan respectively, with gross margins of 3.34% and -56.28% respectively.

In addition, as the end of the reporting period, the company held 3 funds, such as 5 shares of Ronghua Industrial (600311, stock bar) and Jinlong Industry, etc., which generated gains and losses of -202.96 million during the reporting period. The company, as a sale of financial assets, held a sharp contraction in the reporting period, resulting in a change of owners' equity to -112.88 million yuan.

At present, the company is facing more difficulties, including the main business facing the risk of policy, market changes and technological upgrading, rising exchange rate, rising raw material prices and increasing labor costs.