News
Teejay knits resilient start to 2024-25 with profit turnaround in Q1
Strategic responses to challenges facing the textile manufacturing industry have generated a positive start to 2024-25 for Teejay Lanka PLC, Sri Lanka’s first multinational textile manufacturer.The Group has reported profit before tax of Rs 273.7 million for the three months ending 30th June 2024, reversing a loss of Rs 701 million in the first quarter of the preceding year.
Revenue for the three months, at Rs 15.4 billion, reflected an improvement of 10% over the corresponding quarter of the previous year, but gross profit grew by 357% to Rs 1.3 billion, Teejay Lanka said in a filing with the Colombo Stock Exchange (CSE).
Consequently, the Group posted an operating profit of Rs 382 million from an operating loss of Rs 582 million in the first quarter of 2023-24, and reported net profit of Rs 158.3 million for the quarter under review, in contrast to a net loss of Rs 853 million in the corresponding period of the previous year.
Teejay Lanka PLC also reported a strong balance sheet, ending the first quarter with cash and cash equivalents of Rs 8.9 billion.
Teejay Lanka Chairman Ajit Gunewardene said the Group had stepped up its efforts with a focused ESG framework, and embraced digitalization as a way of life, seeing transformation as the way forward. “We are also focused on developing new product lines, and as a result several initiatives were taken to broaden the Group’s synthetic footprint, contributing to progress in both areas,” he said, adding that the Group is confident that the strategies put in place will allow it to maintain its current growth trajectory and reach US$ 300 million in revenue by offering world class solutions to its customers.
Teejay Lanka CEO Pubudu De Silva said that the Group is witnessing a positive shift in orders to the Asian region and that higher volumes are being generated as a result of offloading from Bangladesh. He said the Group is evaluating the ongoing changes in the market while navigating the effects of identified volatilities and challenges by implementing long term strategies.
The Teejay Group owns manufacturing facilities in Sri Lanka and India, along with a state-of-the-art printing facility in Sri Lanka. An ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 compliant company and the first in the industry to develop green fabric, Teejay Lanka was also the first textile manufacturer in Sri Lanka to receive membership of the US Cotton Trust Protocol. Teejay is a public quoted company with 40 per cent public ownership and the backing of Sri Lanka’s largest apparel exporter Brandix Lanka which has a 32 per cent stake in the Company. Pacific Textiles of Hong Kong, whose key shareholder is the Tokyo Stock Exchange listed Toray Industries Inc., owns 27 per cent of Teejay Lanka.
Teejay Lanka was ranked the No 1 corporate entity among 100 public listed companies in Sri Lanka for Transparency in Corporate Reporting in the TRAC 2023 assessment carried out by Transparency International Sri Lanka (TISL), the local arm of the international corruption watchdog. The TISL assessment was carried out on three areas crucial to fighting and preventing corruption: reporting on anti-corruption programmes, transparency in company holdings and the disclosure of key financial information in domestic operations.
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China pledges continued support for Sri Lanka’s Sovereignty, Territorial Integrity, and Independence – Chairman of the Standing Committee of the National People’s Congress of China
Zhao Leji, Chairman of the Standing Committee of the National People’s Congress of China, stated that China is committed to supporting Sri Lanka’s sovereignty, territorial integrity, and independence.
This statement was made during a meeting between President Anura Kumar Disanayake and Zhao Leji, which took place earlier today (16) as part of President Disanayake’s four-day official visit to China.
During the meeting, Chairman Zhao warmly welcomed President Disanayake, further emphasizing that working with Sri Lanka in a continuous and cooperative manner is a key expectation of the Chinese National People’s Congress.
Minister of Foreign Affairs, Foreign Employment, and Tourism, Vijitha Herath; Minister of Transport, Highways, Ports, and Civil Aviation, Bimal Rathnayake; Chinese Ambassador to Sri Lanka, Qi Zhenhong; and Sri Lankan Ambassador to China, Majintha Jayasinghe, were also present at the event.
Business
$3.7 billion foreign direct investment secured during President’s first state visit to China
During President Anura Kumara Disanayake’s four-day state visit to China, Sri Lanka marked a significant milestone by securing the largest foreign direct investment to date. This significant achievement was formalized this morning (16) with the signing of an agreement between Sri Lanka’s Ministry of Energy and Sinopec, a leading Chinese international petroleum corporation.
Under this $3.7 billion investment, a state-of-the-art oil refinery with a capacity of 200,000 barrels will be constructed in the Hambantota region. A substantial portion of the refinery’s output is planned for export, further enhancing the nation’s foreign exchange earnings.
This major investment from China is expected to bolster Sri Lanka’s economic growth while uplifting the livelihoods of low-income communities in the Hambantota area. Moreover, the benefits of this project are anticipated to positively impact the overall Sri Lankan population in the near future.
Minister of Foreign Affairs, Labour and Tourism Vijitha Herath, Minister of Transport, Highways, Ports and Civil Aviation Bimal Rathnayake and Director General of Government Information H. S. K. J. Bandara, alongside other dignitaries were present when the agreement was signed.
President Anura Kumara Disanayake extended an invitation to Chinese investors to explore investment opportunities in Sri Lanka, emphasizing the nation’s stable governance and transparent economy.
He made these remarks as the keynote speaker at the “Investment Forum” held today (16), jointly organized by Chinese state and private enterprises.
The forum was a significant event during President Disanayake’s third day of his four-day state visit to China, undertaken at the invitation of Chinese President Xi Jinping.
Prominent Chinese corporations, including China Tianying Inc. (CNTY), China Harbour Engineering Company Ltd., China Communications Construction Company Ltd., China Petrochemical Corporation (SINOPEC Group), Metallurgical Corporation of China Ltd., China Civil Engineering Construction Corporation (CCECC), China Energy International Group Company Ltd., Guangzhou Public Transport Group and Huawei BYD Auto participated in the event.
President Disanayake also engaged in cordial discussions with the leadership of these corporations.
The forum was attended by Sri Lanka’s Minister of Foreign Affairs, Foreign Employment, and Tourism Vijitha Herath, Minister of Transport, Highways, Ports, and Civil Aviation, Bimal Rathnayake, Chinese Ambassador to Sri Lanka Qi Zhenhong, and Sri Lankan Ambassador to China Majintha Jayasinghe, among others.
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China pledges continued support for Sri Lanka’s Sovereignty, Territorial Integrity, and Independence – Chairman of the Standing Committee of the National People’s Congress of China
$3.7 billion foreign direct investment secured during President’s first state visit to China
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