H share Jingwei Textile Machinery's interim profit fell 22.26 per cent to 50.58 million yuan (about HK$47.55 million) for the six months to June 30, as bigger provisions were made following a change in mainland's accounting policy. A year earlier, Jingwei made a profit of 65.36 million yuan. Jingwei made provisions of 39.54 million yuan for the fixed-asset impairment for the four years to 2000, following the change in accounting policy in China this year. General manager Ye Maoxin said the provision was a one-time item and no more would be needed in the second half. 'The provision was part of the state policy of requiring the domestic businesses to be more prudential in running their finance in line with the international practices,' said Mr Ye. He said other H shares such as Nanjing Panda Electronics and Guangzhou Pharmaceutical were also affected. Jingwei's operating profit grew 24.85 per cent year on year to 104.9 million yuan. Turnover increased 48.42 per cent to 1.23 billion yuan in the period. Earnings per share were 8 fen, down from 14 fen a year earlier. No interim dividend will be paid. Jingwei attributed the business growth in the first half to enhanced internal management and quality control as well as increased exports. Export sales grew 35.73 per cent year on year to 134.52 million yuan. Mr Ye projected that the global slowdown would somewhat affect the country's textile industry in the second half but the sector's continuing structural reform and technological upgrade would sustain the growing demand for new and high-quality machinery. Jingwei is shifting to products that adopt higher automation and digital technology. The company is also negotiating with three Italian firms to help it substitute steel for new materials in its mainstay product, cotton-yarn textile machinery.