Offshore Trust Insight | TEXHONG INTL GP (02678.HK) First-Half Net Profit Up 78.9% YoY, Interim Trusts in Aggregate Report About 67.34% Interest

On October 28, 2026, TEXHONG INTL GP closed at HKD 4.99, down 0.60% for the day, with turnover of about HKD 1.1479 million.

On the shareholding structure, the company's 2026 interim report shows that Hong Tianzhu reported 485,493,760 shares, representing about 52.89%, in his capacity as founder of a discretionary trust; Zhu Yongxiang reported 132,648,640 shares, representing about 14.45%, in his capacity as founder of a discretionary trust; and the trustee, TMF (Cayman) Ltd., reported an aggregate of 618,142,400 shares, representing about 67.34%.

According to disclosures in the 2026 interim report, TDR Trust is an irrevocable discretionary trust, and Hong Tianzhu, as founder, is deemed to have an interest in an aggregate of 485,493,760 shares, of which 398,242,400 shares are beneficially held by New Green Group Limited and 87,251,360 shares are beneficially held by Trade Partner Investments Limited, with the entire issued share capital of both companies held indirectly by the trustee, TMF (Cayman) Ltd., through TDR International Holdings Limited and TDR International Limited. Zhu Yongxiang, as founder of Wisdom Star Trust, is deemed to have an interest in 132,648,640 shares, which are beneficially held by Wisdom Star Global Limited, of which he is a director, and are held indirectly by TMF Trust through Wisdom Star Group Holdings Limited; Wisdom Star Trust is likewise an irrevocable discretionary trust, with TMF Trust as trustee.

On the news front, on July 24, 2026, the subsidiary Shanghai Hongguang entered into a 2026 photovoltaic and energy storage supply chain management consultancy services agreement with a service provider at a maximum aggregate consideration of RMB 60 million, with the service provider ultimately owned as to 78% by Hong Tianzhu and 22% by Zhu Yongxiang, and the transaction constitutes a connected transaction.

On the policy front, on July 24, 2026, the Ministry of Finance and the State Taxation Administration jointly issued the Announcement on Matters Concerning Individual Income Tax on Offshore Trusts (Announcement No. 21 of 2026), bringing the entire life cycle of an offshore trust, from establishment through existence to termination, into the individual income tax administration system, establishing three look-through points, namely establishment, existence and termination, with a uniform tax rate of 20%. The announcement specifies that, during the existence of an offshore trust, income generated by an offshore trust of a resident individual and by overseas entities held or controlled by that trust shall be subject to individual income tax declared and paid annually by that resident individual, regardless of whether the income is actually distributed.

On the financial front, interim results show that Texhong International Group recorded revenue of RMB 11.739 billion in the first half of 2026, up 6.4% year on year, of which revenue from yarn was RMB 9.689 billion and revenue from fabrics and garments was RMB 1.589 billion. Net profit was RMB 829 million, up 78.9% year on year, and profit attributable to owners of the Company was RMB 813 million, up 94.0% year on year.

According to publicly available information, Texhong International Group is a leading manufacturer of high value-added core-spun textile products and one of the world's largest cotton textile manufacturers, principally engaged in the manufacture and sale of yarn, grey fabric, nonwoven fabric and fabrics.