Texhong Textile Group Ltd. provided earnings guidance for the ten months ended October 31, 2016. For the period, the company said that based on review, the earnings of the Group for the ten months ended 31 October 2016 exceeded RMB 1 billion. The strong performance was mainly attributable to the strong sales volume and increase in gross margin. In particular, due to the recent increase in cotton price, product selling prices have risen accordingly while the inventory utilized in production in prior months were procured at a lower cost, leading to a temporary increase in gross margin. It is expected that the Group's gross margin may restore to a normal level in 2017 if cotton price is comparatively stable.