Hong Kong-listed Huafeng Textile International, which is seeking a listing in South Korea, plans to invest HK$280 million to expand its fabric processing and yarn-spinning capacity as well as to tap retail business.
The fabrics maker based in Shishi, Fujian, planned to invest HK$50 million to acquire or open about 50 retail outlets in second- and third-tier mainland cities next year, executive director Cai Yangbo said yesterday.
'The downstream retail distribution business could help strengthen our existing fabric processing and yarn spinning business,' Mr Cai said.
Huafeng Textile, which reported a 9 per cent increase in net profit to HK$49.3 million for the six months to March, also plans to invest 150 million yuan in a new yarn spinning plant in Shishi with an annual capacity of 13,000 tonnes.
Construction work on the new plant will begin in the second half of this year, according to Mr Cai.
Production is expected to start in the first half of next year.