Net income rose 20% in the first half at the Chinese apparel maker to RMB 2,366,616,000 ($357.7 mm) from RMB 2,226,278,000 on revenues that increased by RMB 13,592,789,000 ($2,054.5 mm) from RMB 11,368,606,000. Gross margin was lower by 710 basis points to 22.6% due to a significant increase in production costs and Covid outbreaks in Ningbo in Jan., while other income was up to RMB 946.7 million, benefiting from foreign exchange gains. Selling and distribution expenses were 69% higher, and administrative expenses inched up 5%, weighing on profitability.

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