Q1 profits slump for textile makers

Domestic textile manufacturers saw a drop in their profits in the first three months of this year, according to figures from the China Import and Export Fair, also known as the Canton Fair, China's largest trade fair, which kicked on May 1 in Guangdong Province.

Wang Qianjin, a senior analyst from webtex.com, an information provider for the textile sector, attributed the recent drop of the profits to soaring material and labor costs.

He also pointed out that a large number of domestic textile manufacturers have established online stores in a bid to expand their sales channels and consumer bases as a way to hedge against shrinking profits.