Jingwei Textile Machinery Co posted a 54 per cent fall in net profit to 34.9 million yuan (about HK$32.45 million) last year - just two years since it was listed in February 1996. The result was affected by Beijing's policy to suppress the demand for spindles in a bid to revive the beleaguered textile industry. Jingwei, the mainland's largest textile machinery-maker, warned this year would be another difficult one for the company. Turnover last year dropped 10.2 per cent to 587.4 million yuan, while operating profit fell 63 per cent to 24.4 million yuan. Earnings per share fell 60 per cent to eight fen. The final - and only - dividend was slashed to one fen a share from four fen, and against last year's full-year payout of six fen. The company made a provision for doubtful debts of 1.66 million yuan, up 150 per cent over the previous year. Net accounts receivables rose about 9.4 per cent to 147.5 million yuan. It said turnover for natural fibre textile machinery fell 15 per cent to 319.6 million yuan, chemical fibre textile machinery 23.6 per cent to 113.5 million yuan and textile machinery components and special parts 2.3 per cent to 65.9 million yuan. Other businesses, including trading, reported a 42.3 per cent increase to 88.3 million yuan. The company said it had already placed emphasis on the development of new products such as a rapier loom and two-for-one twister last year, paving the way for their mass production and sales this year. The launch of five new products this year would add sales of about 200 million yuan, which would cover the 200 million yuan estimated loss from falling sales of its spinning frames. Another restructuring measure will include expansion into weaving machinery production. The company said it would strive to increase or maintain sales this year. While Jingwei was intent on boosting exports to compensate for the shortfall in sales of spinning frames, its export sales for last year declined 14.5 per cent to 56.5 million yuan, or 9.6 per cent of total turnover. Interest income saved the company from reporting a profit slide for the previous year.