Huafu Fashion's controlling shareholder, Huafu Holdings, has pledged 45 million company shares, representing 2.65% of total share capital, for purposes including replenishing working capital. Following this pledge, Huafu Holdings' cumulative pledged shares total 45 million, accounting for 11.21% of its holdings in the company. The company's revenue has declined for four consecutive years since 2022, with 2025 revenue reaching 8.05 billion yuan, down 25.20% year-on-year. The company expects net profit attributable to shareholders of the listed company for the first half of 2026 to be between 160 million and 200 million yuan, representing year-on-year growth of 537.51% to 696.88%, mainly due to rising raw cotton prices driving order recovery and investment income of approximately 160 million yuan. Recently, the company stated on an interactive platform that its Aksu computing power project has not yet been officially completed and equipment has not been fully procured, which may raise market doubts about its ability to transform its computing power business. As of the close on July 17, Huafu Fashion shares traded at 3.69 yuan per share, down over 30% from the high in early May.
Huafu Top Dyed Melange Yarn Co LtdControlling shareholder pledges shares to replenish working capital, and stock price has dropped over 30% from early May high.
Rising raw cotton prices are mentioned as a driver for order recovery and profit growth for Huafu Fashion, implying positive impact on cotton futures.