Queen South Textile Mills financial analysis: 0.7% net margin, 194-day receivables (Oct 2026)

Investment considerations: 0.7% net margin, 194-day receivables, interest cover of 1.38x

Queen South Textile Mills Limited dyes yarn for the sweater industry inside the Dhaka Export Processing Zone at Ganakbari, Savar; its company profile gives the nature of business as "Dyeing of Yarn for sweater industry (100% export oriented)" [1 p.10]. The directors' report describes the products as "different types of knitted, dyed and finished cotton, Nylon, Polyester, Viscose, Carded, combed, Acrylic etc. yarn in a single business segment" [1 p.17]. The company was incorporated on 15 June 2003, began commercial operation at DEPZ on 5 June 2005, and listed on the Dhaka and Chittagong exchanges on 7 January 2018 [1 p.10] [1 p.17]. Mr. Wong Kwok Chuen, a Hong Kong national, chairs the board and represents Gainplus Agents Limited, which holds 30.12% [1 p.12] [1 p.21]. The managing director, Mr. Wong Jammy Kwok Chan, holds 17.51% and "established Queen South Textile Mills Limited along with his family members" in 2003 [1 p.12] [1 p.22].

What the filings show, on the company (standalone) basis. Revenue: BDT 4,761.2m in FY2025 and BDT 4,309.0m in FY2024, all of it "Revenue from export" [1 p.112]. Margin: gross margin 10.5% in FY2025, 12.1% in FY2021; net margin 0.7% and 4.6% [1 p.94] [6 p.57] [21]. Interest: financial expenses of BDT 212.7m took 73% of the BDT 292.7m profit from operation [1 p.94] [21]. Working capital: inventories of BDT 2,650.7m and receivables of BDT 2,535.1m made up 42% and 41% of total assets at June 2025 [1 p.93] [21]. Record: ROE on average equity was above 5% in 2 of the 4 years we can compute, FY2022 (10.6%) and FY2023 (5.3%), and 1.4% in FY2025 [21].

Business: a 724-employee DEPZ yarn dyer selling in US dollars to sweater makers

How the company makes money. The mill imports yarn, dyes and finishes it, and sells it to sweater makers. The FY2025 notes record yarn imports of BDT 3,201.6m and yarn consumed of BDT 3,287.4m, 69.0% of revenue [1 p.112] [21]. Sales are in US dollars: the revenue key audit matter states that "all sales are translated from USD currency to BDT" and that the products "primarily comprise sale of sewing dye yarn" [1 p.55]. The first-quarter notes describe the company as "engaged in dying of yarn for consumption by sweater industry through local LC (Deemed Export)" [2 p.5]. Trade receivables are "fully secured by LC" according to note 10 [1 p.108].

Scale and people. Property, plant and equipment cost BDT 2,197.6m at June 2025, of which machinery and equipment BDT 1,773.7m, and the written-down value was BDT 692.3m [1 p.118]. The company employed 115 permanent staff and 609 permanent workers, 724 in all, at the FY2025 year end [1 p.117]. The annual report prints no capacity or production volume in kilograms; the filings give revenue in taka [1 p.112].

FY2021-FY2025. Revenue rose from BDT 3,586.0m in FY2021 to BDT 5,094.7m in FY2023, fell to BDT 4,309.0m in FY2024 and reached BDT 4,761.2m in FY2025 [6 p.57] [4 p.116] [1 p.94]. Net profit after tax peaked at BDT 235.8m in FY2022 and was BDT 34.6m in FY2025 [5 p.62] [1 p.94]. Over the same years financial expenses went from BDT 107.6m to BDT 212.7m [6 p.57] [1 p.94]. The directors' report for FY2025 lists the factors it links to the lower profit: "Significant increases in utility tariffs (gas and electricity) during the quarter", "Higher salaries and wages" and "A reduction in competitive sales prices for dyed yarn", together with export bills not settled on maturity and "Adverse foreign currency movements" [1 p.26].

Subsidiary. QS Widex Solar (BD) Limited was incorporated on 4 March 2024 "with the objectives of conducting the buniess of generating, accumulating & distributing of Solar energy"; the March 2026 notes state "intended business operation of the company has not coomenced yet" [2 p.5]. The company's investment is BDT 1.12m [1 p.107]. Consolidated profit for FY2025 was BDT 29.8m after a BDT 2.3m non-controlling share of the subsidiary's loss [1 p.60]. This note uses the company (standalone) statements for FY2024 and FY2025 and labels consolidated figures where they appear.

Line items: yarn consumed 69.0% of revenue, BDT 212.7m of financial expenses, a 56.8% tax rate

Revenue. The FY2025 revenue of BDT 4,761.2m is a single line, "Revenue from export" [1 p.112]. The directors' report puts the year's increase at 10.49% and writes that "the company's revenue growth fully depends on orders from buyers" [1 p.25]. Note 38 attributes the higher cash receipts to the exchange rate: "dollar conversion rate of our export had been increase by BDT 45.25 crore compare to previous year" [1 p.116]. The filings print no volume; the split of the change between kilograms, price and exchange rate is not available in the corpus.

Cost of sales. Yarn consumed rose from BDT 2,772.8m to BDT 3,287.4m; dyes and chemicals consumed fell from BDT 345.8m to BDT 262.8m; manufacturing expenses were BDT 809.9m [1 p.112]. Inside manufacturing expenses, Utility Bills-BEPZA were BDT 224.7m, Gas Charges- Titas BDT 204.5m, wages BDT 180.5m and depreciation BDT 89.4m [1 p.112]. Utility and gas together were 9.0% of revenue in FY2025 and 9.9% in FY2024 [21]. Gross profit was BDT 500.5m, a gross margin of 10.5%, after 11.1% in FY2024 [1 p.94] [21].

Two printed descriptions of the same gross profit differ. The directors' report says "the gross profit margin increased to Tk. 22.65 million compared to the previous year" [1 p.26]. Note 37 says "the Gross profit of the company in the period has decreased significantly" [1 p.116]. The statement prints gross profit of BDT 500,468,611 for FY2025 and BDT 477,818,396 for FY2024 [1 p.94].

Foreign currency. The income statement shows a foreign currency loss of BDT 47.2m in FY2025 and BDT 3.1m in FY2024 [1 p.94]. The FY2023 loss was BDT 60.1m [4 p.116]. The company's risk note states that exports "would settle within very short period" and that "volatility of exchange rate will have no impact on profitability" [1 p.106]. The FY2025 cash-flow note adds an adjustment of BDT 192.5m of unrealized foreign exchange on trade receivables [1 p.114].

Operating expenses. Administrative expenses were BDT 142.0m, including salaries and allowances of BDT 109.5m and audit fees of BDT 0.31m; selling and distribution expenses were BDT 19.1m [1 p.113]. Profit from operation was BDT 292.7m, an operating margin of 6.1% [1 p.94] [21].

Financial expenses. Note 30 splits the BDT 212.7m charge into interest on TR loans of BDT 94.5m, bill discounting BDT 53.2m, bill settlement BDT 23.9m, term loan BDT 17.4m, overdraft BDT 2.8m, lease interest BDT 0.7m and bank charges and commission of BDT 20.2m [1 p.113]. The rows add to the printed total [21]. Note 37 links the finance cost to export bills: "the customer did not settle the export bills on maturity. As we discount the export bills, we could not settle the discount export bills on maturity" [1 p.116].

Tax. Income tax expense was BDT 45.4m on profit before tax of BDT 80.0m, an effective rate of 56.8%; in FY2021 the rate was 15.0% [1 p.94] [6 p.57] [21]. Note 31.02 computes tax at 15% on business income as BDT 8.76m and books the BDT 48.71m deducted at source, stating "As per section 163 of the ITO tax deducted at source or tax calculated @ 15% whichever is higher will be the tax payable" [1 p.114]. The company books no Workers' Profit Participation Fund; the directors write that under the EPZ labour act "we don't need to maintain WPPF until government enforce and instruct to comply the rules" [1 p.30].

FY2026: EPS BDT 0.28 on the DSE post; nine-month revenue 20.6% lower

FY2026 has been reported to the exchange and the annual report is not in the corpus at 1-Nov-2026. The board met on 28 October 2026 on the audited statements for the year to 30 June 2026 (notice posted 14-Oct-2026) [14]. The DSE post of 29 October 2026 gives basic and diluted EPS of Tk. 0.28, NAV per share of Tk. 16.07 and NOCFPS of Tk. 3.69, and Tk. 0.20, Tk. 15.82 and Tk. 2.95 for FY2025 [14]. The FY2025 figures in that post are the consolidated ones [1 p.59] [1 p.60]. The quarterly posts gave EPS of Tk. 0.06 for July-September 2025, Tk. 0.15 for July-December 2025 and Tk. 0.24 for July 2025-March 2026 [14]. Full-year EPS less nine-month EPS leaves an implied fourth quarter of BDT 0.04; the same calculation for FY2025 gives BDT -0.16 (BDT 0.20 for the year, BDT 0.36 for nine months) [21]. Both are derived figures; the DSE posts print no fourth-quarter EPS.

The nine months to March 2026 (consolidated, un-audited). Revenue was BDT 3,086.0m, 20.6% lower than the BDT 3,886.0m of the same period a year earlier [2 p.2] [21]. Gross margin was 10.9% and 10.3% [21]. The foreign currency line was a BDT 6.6m gain, after a BDT 40.5m loss [2 p.2]. Financial expenses were BDT 167.2m and BDT 164.6m; net profit was BDT 36.0m and BDT 55.4m [2 p.2]. For January-March 2026 alone revenue was BDT 1,165.3m and EPS Tk. 0.09; for January-March 2025 the figures were BDT 1,516.0m and Tk. 0.18 [2 p.2]. Net cash provided by operating activities for the nine months was BDT 585.6m, NOCFPS Tk. 3.75 [2 p.4].

Ratios: gross margin 10.5%, net margin 0.7%, ROE 1.4% in FY2025

Margins. Gross margin was 12.1%, 11.5%, 11.3%, 11.1% and 10.5% in FY2021-FY2025; operating margin 8.4%, 8.1%, 7.1%, 7.7% and 6.1%; net margin 4.6%, 4.9%, 2.4%, 1.1% and 0.7% [21]. The company's own key-operating table, on the consolidated basis for FY2024-FY2025, prints gross margins of 10.51% and 11.09% and net margins of 0.63% and 1.06% [1 p.24].

Returns and cover. ROE on average equity was 10.6% in FY2022, 5.3% in FY2023, 2.0% in FY2024 and 1.4% in FY2025 [21]. Interest cover, profit from operation over financial expenses, was 2.79x, 3.47x, 1.84x, 1.35x and 1.38x [21]. Financial expenses were 3.0% of revenue in FY2021 and 4.5% in FY2025 [21].

Balance sheet: BDT 2,217.0m of borrowings, receivables of 194 days, inventories of 227 days

Borrowings. Long-term borrowing including the current portion and short-term borrowing added to BDT 2,217.0m at June 2025, 0.92x equity of BDT 2,418.7m [1 p.93] [21]. Note 16 lists HSBC Bank Ltd. at BDT 187.8m, IDLC lease finance at BDT 4.3m and "Loan from Shareholders" at BDT 469.5m; the HSBC loan carries "SOFR +3.75%" and is secured on "Building, machineries and book debt" [1 p.110]. Note 19 lists trust-receipt loans from Woori Bank, Premier Bank and HSBC of BDT 1,495.6m and a Woori overdraft of BDT 59.9m [1 p.111]. Short-term borrowing was 70.2% of the total [21]. The risk note states "maximum debts are interest free" [1 p.105].

Receivables. Trade receivables were BDT 2,535.1m at June 2025, BDT 2,089.3m a year earlier and BDT 1,551.1m at June 2023 [1 p.93] [4 p.115]. The ageing table in note 10 shows BDT 709.8m due within three months, BDT 1,799.9m due in three to six months and BDT 25.4m over six months; the note states "No debts are considered as bad during the period" [1 p.108]. Receivable days on revenue were 111, 177 and 194 at June 2023, 2024 and 2025 [21]. At March 2026 the consolidated balance was BDT 3,182.2m [2 p.1].

Inventories and payables. Inventories were BDT 2,650.7m at June 2025: raw materials BDT 1,659.8m, work-in-process BDT 282.3m, finished goods BDT 442.6m, dyes and chemicals BDT 247.0m and spares BDT 19.0m [1 p.108]. That is 227 days of cost of sales [21]. Trade and other payables were BDT 1,245.2m, 107 days of cost of sales, and BDT 1,604.8m at March 2026 (consolidated) [1 p.93] [2 p.1] [21]. The cash conversion cycle was 315 days in FY2025 and 248 days in FY2023 [21].

Cash flow. Net cash provided by operating activities was BDT 137.7m, 77.5m, 698.8m, 167.3m and 451.7m in FY2021-FY2025 [6 p.59] [5 p.64] [1 p.96]. The statements place financial expenses paid under financing activities; operating cash flow plus net investing flow less financial expenses paid was BDT -173.6m, -96.0m, 286.3m, -93.6m and 221.7m [21]. Acquisition of property, plant and equipment was BDT 17.3m in FY2025, "from its own generation of fund" according to the directors [1 p.24] [1 p.96]. Cash and cash equivalents were BDT 6.9m at June 2025 and BDT 18.5m at March 2026 (consolidated) [1 p.93] [2 p.1].

Related parties: Gain Plus Agents Limited owed BDT 469.5m as a shareholder loan and BDT 598.6m in trade payables

Related parties. The FY2025 related-party table lists ten counterparties, nine marked "Common Management" and one, Huge Master, with no relationship printed [1 p.27] [1 p.117]. Closing balances at 30 June 2025, as printed: Gain Plus Agents Limited, trade payable (598,648,611) and loan from shareholders (469,504,993); Ideal Fastenar BD Limited, trade payable (138,405,278); Queensin Ltd, trade payable (53,610,605); Huge Master (18,611,472); Kingpro Manufacturing Co. Limited (12,828,485); Kingpro Trading Limited (7,245,580); Master Knitwear Ltd (3,525,070) [1 p.27]. Winpro Textile Mills Ltd (trade payable, opening 53,458,134) and BHK Textile Mills Ltd (trade receivable, opening 33,689,000) show adjustments equal to their openings and a blank closing column [1 p.27]. The company "opines that terms of related transaction do not significantly differ from those that could have been obtained from third parties" [1 p.27]. The directors' report refers the reader to "Notes no. 35.1"; the table is printed as note 39.1 [1 p.27] [1 p.117].

Ownership. At 30 June 2025 sponsors and directors held 78,693,021 shares, 51.57%; the general public 38.27%; institutions 7.41%; foreigners 2.75% [1 p.22]. Director holdings as printed: Mr. Wong Kwok Chuen (nominated by Gainplus Agents Limited) 45,962,515, Mr. Wong Jammy Kwok Chan 26,722,393, Ms. Lee Hung Chun 4,275,582 and Mr. Tsang Wai Kwan 1,732,531 [1 p.22]. The same four holdings add to 78,693,021 [21]. Three printings of the June 2025 register differ for Ms. Wong Elisa Dai Wah: page 21 lists 4,275,582 shares (2.80%) as "Foreigner"; note 14 lists 4,275,582 shares; Annexure-D lists "-" at 30-Jun-25 and 4,275,582 at 30-Jun-24 [1 p.21] [1 p.110] [1 p.88]. Ms. Lee Hung Chun "is the spouse of the Chairman" [1 p.12].

Directors' pay. "No remuneration was paid to board of directors. The Company paid taka 120,000/- as remuneration to the Independent Directors in the financial year 2024-2025" [1 p.27]. The FY2026 and FY2025 dividends exclude the 78,693,021 sponsor and director shares [14].

Audit and governance: a 'Basis for Qualified Opinion' on the WPPF, eight key audit matters, no 'Not Compiled' conditions

FY2025 auditor's report. MRH Dey & Co., signed by Sumon Chandra Dey, FCA, on October 28, 2025 [1 p.57]. The opening paragraph, as printed: "We have audited the consolidated financial statements of Queen South Textile Mills Limited and its subsidiary as well as the separate financial statements of QS Widex Solar (BD) Limited (the company)" [1 p.51]. The opinion paragraph, word for word from the page image: "In our opinion, the accompanying consolidated and separate financial statements of the Company presents fairly , in all material respects, the consolidated financial position of the Group and the separate financial position of the Company as at June 30, 2025 and of its consolidated and separate financial performance and its consolidated and separate cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), International Accounting Standard (IASs), the Companies Act 1994, the Securities and Exchange Rules 2020 and other applicable laws and regulations." [1 p.51]

The basis section is headed "Basis for Qualified Opinion:" and reads: "Refer to note no: 2.18, we continued our attention to the fact from last audited report that the company did not yet introduce fund for WPPF purpose with retrospective effect & thereby no initiative to that effect was observed in the Financial Statements until the date of signing. The matter concerns to the rule no. 212 of the Bangladesh labor Rules 2015 & section no. 232 of the Bangladesh Labor Law 2006 (amended 2013)." [1 p.51] The opinion paragraph contains no "except for" wording; the DSE post of 11-Dec-2025 states "The auditor of the company has given Qualified Opinion paragraph in the audited consolidated financial statements for the year ended on 30 June 2025" [1 p.51] [14]. The WPPF policy is printed under note 2.16 "Employee Benefits" [1 p.68]. The report has no emphasis-of-matter paragraph. It has an "Other Matter:" paragraph: "The Consolidated Financial statements of Queen South Textile Mills Limited for the year ended 30 June 2024 were audited by Pinaki & Company., Chartered Accountants, who expressed a modified opinion on those financial statements on 31 October 2024." [1 p.57]

The company's explanation, in the directors' report: "As per Bangladesh Labour Law 2006, amendment 2013, Chapter 15, Section 232 the company does not maintain Workers Profit Participation Fund (WPPF) for their workers as because now the company operating EPZ labor ACT 2019, February 28 and as per clause no.174, Section XV we don't need to maintain WPPF until government enforce and instruct to comply the rules. Once government instructs us to deduct @0.03% to maintain the fund the company shall follow accordingly." [1 p.30]

Key audit matters, the descriptions quoted in full from the page images [1 p.51] [1 p.52] [1 p.53] [1 p.54] [1 p.55]. Property, plant and Equipment: "The carrying value of the PPE amounted to Tk. 692,338,890 as at 30 June, 2025. There is a risk of: Determining which costs meet the criteria for capitalization; Determining the date on which the assets is recognized to property, plant and equipment and depreciation commences; The estimation of economic useful lives and residual values assigned to Fixed asset. We identified the carrying value of property, plant and equipment as a key audit matter because of the high level of management judgment involved and because of its significance to the financial statements. See note no. 5 for details." Leases: "The Company & Group have reported right-of-use assets (ROU) Taka 14,872,294 and lease liabilities Taka 16,496,175 in its separate and consolidated financial statements which is arising from the lease rental agreements for its land. For calculation of the lease liability, the in management applies Its judgement determination of lease term where certainty of exercising the option to extend or the option not to terminate the lease is considered. The incremental borrowing rate is used as discounting rate in calculation of lease liability. We considered the implementation of IFRS :16 ''Leases'' as a key audit matter. Management had to apply several judgments and estimates such as lease term, discount rates, measurement basis among others and undertake a significant data extraction exercise to summarize the lease data for input into their lease calculation model. See note no. 6 & 16 for details." Capital Work in Progress: "The Company's assets held under capital work in progress as on the closing date are amounted to BDT 120,230,400.00 equivalent to 14.53% of total non-current assets. Due to the high value of transactions, terms and valuation of these assets, it was significant to our audit. See note no. 7 for details."

Inventories: "The amount of inventory is Tk. 2,650,717,918.00 as at 30 June, 2025. Which amounted to 42.42% of the total assets. As per IAS 2, inventories are required to be valued at the lower to cost and net realizable value. Cost of inventories includes purchase cost and cost incurred in bringing inventories to its present location and condition. IAS: 2- ''Inventories'' specifically prohibits certain costs from being excluded from the cost of inventories. QSTML values its inventories using the weighted average method which is a complex process and prone to errors and manipulation. Due to the complex nature of accounting for inventories, there is an increased risk of misstatement in valuation of inventory items. IAS 2 defines inventories as assets which are: (a) held for sale in the ordinary course of business, (b) in the process of production for such sale, (c) in the form of materials or supplies to be consumed in the production process or rendering of services. There was therefore a risk that assets which do not meet the definition of inventories have been improperly classified as inventory items. See note no. 8 for details." Receivables: "The Company has accounts receivable of Tk. 2,535,132,194 as at 30 June 2025. Accounts receivable of the company comprise mainly receivables regarding the sale of yarns which is secured by Letter of Credit (L/C). See note no. 9 for details." Bank Loan: "The company reported long-term loan & short-term Tk. 547,262,378.00 & 1,555,516,309.00 respectively in the statement of financial position at the reporting date. The above borrowing was considered as key audit matter because this external form of credit facilities availed by the company required fulfillment of several terms and conditions as mentioned in sanction letter issued by lending bank. Any non-compliance with those stipulated terms and conditions might result in subsequent withdrawal and pose a threat to ongoing operation of the company. Besides, risk of material misstatement also lies due to non-disclosure of all those terms and conditions in the financial statements. See note no. 15 & 18 for details"

Deferred tax liability: "The net deferred tax liability is Tk. 47,578,595.00 as at 30 June, 2025. Significant judgment is required in relation to deferred tax liabilities as it is dependent on forecasts of future profitability over a number of years. See Annexure-F for details." Revenue: "The Company has reported export revenue of Tk. 4,761,174,135 All of the Company's sales are made under sales invoice, delivery challan. Its products primarily comprise sale of sewing dye yarn. Revenue is recognized at the point of delivery from Factory. We identified revenue recognition as a key audit matter because revenue is one of the key performance indicators of the company and therefore there is an inherent risk of manipulation of the timing of recognition of revenue by management to meet specific targets or expectations. As all sales are translated from USD currency to BDT, there is a risk that foreign exchange gain/loss might not be correctly recognized in the Financial Statements. See note no. 25 for details." The audit responses list procedures for each matter, including observing the year-end inventory count, confirmations from lenders and review of subsequent receipts [1 p.53] [1 p.54].

Earlier opinions. FY2024 (Pinaki & Company, 31 October 2024): qualified, "except for the effects of the matter described in the 'Basis for Qualified Opinion'", with two bases: "Refer to note -5.00, the property, plant & equipment calculation of depreciation doesn't comply with IAS-16" and the WPPF fund [4 p.69]. FY2023 (Pinaki & Company): qualified on the WPPF and on property, plant and equipment of BDT 2,090,068,926 at 1 July 2022 that "were not possible to confirm by us due to lack of proper asset register & other necessary relevant audit evidences" [5 p.53]. FY2022 (Ahmed Zaker & Co.): "In our opinion, the accompanying financial statements give true and fair view", with an emphasis of matter on the WPPF [6 p.50]. The DSE posted a qualified-opinion notice for FY2024 on 3-Dec-2024 and for FY2025 on 11-Dec-2025 [14].

Board and committees (FY2025 annual report). The board has six members: Mr. Wong Kwok Chuen (Chairman), Mr. Wong Jammy Kwok Chan (Managing Director), Mr. Tsang Wai Kwan (Director), Ms. Lee Hung Chun (Director), Mr. Mostaque Ahmmed Sarwar, ACA (Independent Director) and Ms. Masuda Sultana, FCS (Independent Director) [1 p.18]. Eight board meetings were held; attendance as printed: Wong Kwok Chuen 8, Wong Jammy Kwok Chan 8, Lee Hung Chun 8, Tsang Wai Kwan 1, Mostaque Ahmmed Sarwar 8, Goutam Chandra Roy (CFO) 8, Massum Rana (Company Secretary) 8, Narayan Roy, FCS, FCA (HIAC) 4; Ms. Masuda Sultana does not appear in the attendance table [1 p.20]. The audit committee is Mr. Mostaque Ahmmed Sarwar, ACA (Chairman), Mr. Tsang Wai Kwan and Ms. Lee Hung Chun (Members), with Mr. Massum Rana as Secretary; each attended 4 of 4 meetings [1 p.19]. The nomination and remuneration committee has the same three members and secretary; each attended 1 of 1 meeting [1 p.20]. The NRC page spells the member "Ms. Lee Hung Chung" [1 p.37].

Statements to set side by side. The directors' report says the audit committee was "constituted consisting with 2 (Two) Directors, 1 (One) of whom is an Independent Director" and lists three directors beneath that sentence [1 p.19]; the compliance annexure marks condition 5(2)(a), "composed of at least 3 (three) members", as complied [1 p.47]. The AGM notice carries "Agenda-5: To appoint one female Independent Director" [1 p.3]; the annexure marks 1.2(a)(i), "At least 1 female Independent Director", as complied [1 p.45]. The directors' report states "There is no holding of Directorship and membership of the committees of the board other than this company" [1 p.23]. We read the annexure page by page from the images (pages 45 to 48): no condition is ticked "Not Compiled" [1 p.45] [1 p.46] [1 p.47] [1 p.48]. The certificate by M M Yasin, Chartered Accountants (Md. Yasin Miah FCA, October 30, 2025) states that "The Company has complied with the conditions of the Corporate Governance Code" and "The Governance of the company is satisfactory" [1 p.44].

Key management. The management committee page lists Mr. Wong Jammy Kwok Chan (Managing Director), Brig Gen Asif Ahmed Ansari (Retd) (Chief Executive Officer), Mr. Massum Rana (Company Secretary), Mr. Shahabuddin (Deputy General Manager), Mr. Goutam Chandra Roy (Chief Financial Officer), Miss. Zhao Chao Qiong (Dyeing Technician) and Mr. Muzahid Hassan (Sr. Manager and In Charge of maintenance); the internal audit team is Mr. Narayan Roy, FCS, FCA (Head of Internal Audit and Compliance), Mr. Mosharaf Hossain (Sr. Cost Analyst), Mr. Forhad Ahmed and Mr. Abdullah-Al-Mamun (Asst. Managers) and Mr. Massum Rana (Company Secretary) [1 p.9]. The board proposed keeping MRH Dey & Co. as auditor for FY2026 [1 p.23].

Peers: four FY2025 company filings, figures side by side

The peers are three DSE textile companies with June year ends and published AnalystBro notes, whose FY2025 company statements we re-opened. Each business as printed: Queen South Textile Mills, "Dyeing of Yarn for sweater industry (100% export oriented)" [1 p.10]; Mozaffar Hossain Spinning Mills, "100% export oriented woven fabrics cotton yarns" [15 p.22]; Simtex Industries, "Dyeing and conning/Winding of sewing thread" [16 p.104]; Hwa Well Textiles, "a 100% export-oriented, backward-linkage textile manufacturer specializing in a wide range of knitted fabrics" [17 p.24]. Financial expenses are gross as printed: Queen South's include BDT 20.2m of bank charges [1 p.113]. Queen South books no WPPF; the three peers' profits are after WPPF [1 p.94] [15 p.58] [16 p.101] [17 p.85]. Queen South's borrowings include the BDT 469.5m loan from shareholders; Hwa Well prints no borrowings [1 p.110] [17 p.84]. Audit opinion labels come from each filing: MHSML unmodified with one emphasis of matter (M. Z. Islam & Co.), SIMTEX unmodified (Habib Sarwar Bhuiyan & Co.), HWAWELLTEX unmodified (S. F. Ahmed & Co.) [15 p.53] [16 p.95] [17 p.79]. The table states figures for four different businesses and does not rank them.

Figures company by company. QUEENSOUTH: gross margin 10.5%, financial expenses 4.5% of revenue, borrowings 0.92x equity. MHSML: 21.2%, 14.5% and 2.09x. SIMTEX: 17.7%, 3.8% and 0.37x. HWAWELLTEX: 14.4%, 0.3% and 0.00x [21]. The four make different products (dyed yarn, cotton yarn, sewing thread, knitted fabric), and the filings give no common cost basis for comparing their margins [1 p.10] [15 p.22] [16 p.104] [17 p.24].

Dividends: 2% cash to non-sponsor shareholders for FY2026, record date 25-Nov-2026

Dividend record from the annual reports. FY2021: "10% Cash and 10% Stock dividend" [7 p.27]. FY2022: "6% Cash and 6% Stock dividend" [6 p.24]. FY2023: "6% Cash Dividend", with BDT 42,819,220 printed as declared in taka [5 p.26] [4 p.24]. FY2024: "2% Cash Dividend", BDT 14,273,073 [4 p.28] [1 p.25]. FY2025: "0.5% Cash Dividend", BDT 3,695,421 [1 p.29] [1 p.25]. The DSE posts for FY2024 and FY2025 state that the dividend was "only for General Shareholders excluding Sponsors & Directors" [14]. Note 41 describes the FY2025 dividend as 0.5% "of the paid up capital of Foreigner and General Public Shareholders" [1 p.117].

FY2026. The board recommended "2% Cash dividend (Excluding sponsors/directors)" on 28 October 2026: 73,908,418 shares held by foreigner and general public shareholders, Tk 0.20 a share, a total of taka 14,781,683.60, record date 25.11.2026, subject to AGM approval [14]. At BDT 12.6 the BDT 0.20 is 1.6% of the share price [20]. The FY2024 and FY2025 dividend disbursements were posted on 11-Feb-2025 and 1-Feb-2026 [14].

What's next: Q1 FY2027 in mid-November, the record date on 25 Nov and the AGM in late December

Results calendar precedents. The annual board meeting was held on 27 October 2025 for FY2025 and 28 October 2026 for FY2026 [14]; the FY2025 statements are dated October 28, 2025 [1 p.93]. Earlier audit-report dates were 31 October 2024, November 09, 2023 and 27th October, 2022 [4 p.115] [5 p.61] [6 p.57]. The board met on 28 October 2026 on the audited FY2026 statements [14]. Record dates were 15 November 2022, 5 December 2023, 28 November 2024 and 27 November 2025 [6 p.3] [5 p.3] [4 p.28] [1 p.3].

LDC graduation. The UN General Assembly adopted the decision on 29 October 2026 in New York, 30 October in Dhaka, as reported by The Daily Star and The Business Standard [18] [19]. The company's filings do not link its sales to LDC status; its yarn goes to export-oriented sweater makers [1 p.10].

Capital projects. We swept the DSE news archive for 31 October 2024 to 1 November 2026 (criteria 3): it carries results, dividends, board-meeting notices, the AGM, auditor's-opinion notices and a credit rating, and no board approval of a capital project, expansion or BMRE [14]. Capital work in progress has been BDT 120.2m since June 2024 with no expenditure or capitalisation in FY2025 [1 p.107], and the auditor made it a key audit matter [1 p.52]. The nine-month cash flow to March 2026 shows BDT 20.3m spent on property, plant and equipment [2 p.4].

Risks: export bills, interest, exchange rates and the WPPF

The company's own risk note lists interest-rate, exchange-rate, industry, market, operational and liquidity risks, each with a "Management perception" paragraph [1 p.105] [1 p.106]. The table below sets each risk beside its FY2025 scale in the filings.

Financial expenses of BDT 212.7m were 2.7x profit before tax in FY2025 [1 p.94] [21]. Receivables of BDT 2,535.1m were 1.05x equity at June 2025 [1 p.93] [21].

Key questions: the FY2026 accounts, receivables and the WPPF

Summary of the record: FY2025 company-basis profit after tax of BDT 34.6m on revenue of BDT 4,761.2m, financial expenses of BDT 212.7m, borrowings of BDT 2,217.0m and receivables of BDT 2,535.1m [1 p.93] [1 p.94] [21]; FY2026 EPS of BDT 0.28 and NAV of BDT 16.07 on the DSE post [14]. At BDT 12.6 the shares trade at 45.0x FY2026 EPS and 0.78x June 2026 NAV [20] [21].

FAQ

What does Queen South Textile Mills do?

It dyes yarn for the sweater industry at Dhaka EPZ, "100% export oriented" [1 p.10].

When does the company's financial year end?

On 30 June [1 p.93].

What was QUEENSOUTH's EPS for FY2026?

BDT 0.28 on the DSE post of 29-Oct-2026, after BDT 0.20 for FY2025 (consolidated) [14]. The FY2026 annual report is not in the corpus at 1-Nov-2026.

What dividend did QUEENSOUTH declare for FY2026?

2% cash (BDT 0.20 a share) for non-sponsor shareholders, excluding sponsors and directors; record date 25-Nov-2026 [14].

Who owns Queen South Textile Mills?

Sponsors and directors held 51.57% at 30 June 2025, including Mr. Wong Kwok Chuen (nominated by Gainplus Agents Limited) with 30.12% and Mr. Wong Jammy Kwok Chan with 17.51% [1 p.22].

How much does the company borrow?

BDT 2,217.0m at 30 June 2025 on the company basis, including a BDT 469.5m loan from shareholders; BDT 2,130.7m at 31 March 2026 on the consolidated basis [1 p.110] [2 p.1] [21].

Did the auditor qualify the FY2025 accounts?

The report is headed "Basis for Qualified Opinion" on the WPPF and the DSE posted it as a "Qualified Opinion paragraph"; the opinion paragraph itself has no "except for" wording [1 p.51] [14].

Does the company pay WPPF?

No. The directors state that under the EPZ labour act "we don't need to maintain WPPF until government enforce and instruct to comply the rules" [1 p.30].

Sources

1. Queen South Textile Mills Ltd. Annual Report 2024-2025 (year to 30-Jun-2025; consolidated and standalone statements; auditor MRH Dey & Co.) · link · accessed 2026-11-02
2. Queen South Textile Mills Limited un-audited statements, nine months to 31-Mar-2026 (dated April 29, 2026) · link · accessed 2026-11-02
3. Queen South Textile Mills Limited un-audited first-quarter statements to 30-Sep-2025 (authorised 13 November 2025) · link · accessed 2026-11-02
4. Queen South Textile Mills Ltd. Annual Report 2023-2024 (year to 30-Jun-2024; auditor Pinaki & Company) · link · accessed 2026-11-02
5. Queen South Textile Mills Ltd. Annual Report 2022-2023 (year to 30-Jun-2023; auditor Pinaki & Company) · link · accessed 2026-11-02
6. Queen South Textile Mills Ltd. Annual Report 2021-2022 (year to 30-Jun-2022, with Jun-2021 comparatives; auditor Ahmed Zaker & Co.) · link · accessed 2026-11-02
7. Queen South Textile Mills Ltd. Annual Report 2020-2021 (year to 30-Jun-2021) · link · accessed 2026-11-02
8. Queen South Textile Mills Limited un-audited first-quarter (Sep quarter) statements to 30-Sep-2018 (dated November 14, 2018) · link · accessed 2026-11-02
9. Queen South Textile Mills Limited un-audited first-quarter (Sep quarter) statements to 30-Sep-2019 (dated November 13, 2019) · link · accessed 2026-11-02
10. Queen South Textile Mills Limited un-audited first-quarter (Sep quarter) statements to 30-Sep-2020 (dated November 14, 2020) · link · accessed 2026-11-02
11. Queen South Textile Mills Limited un-audited first-quarter (Sep quarter) statements to 30-Sep-2021 (dated November 11, 2021) · link · accessed 2026-11-02
12. Queen South Textile Mills Limited un-audited first-quarter statements to 30-Sep-2022 (authorised 14 November 2022; corpus key dated 2021-09-30) · link · accessed 2026-11-02
13. Queen South Textile Mills Limited un-audited first-quarter statements to 30-Sep-2023 (authorised 23 November 2023; corpus key dated 2022-09-30) · link · accessed 2026-11-02
14. Dhaka Stock Exchange news archive for QUEENSOUTH, posts 3-Nov-2024 to 29-Oct-2026 (results, dividends, board-meeting notices, AGM, auditor's opinion, credit rating) · link · accessed 2026-11-02
15. Mozaffar Hossain Spinning Mills Limited Annual Report 2025 (standalone statements) · link · accessed 2026-11-02
16. Simtex Industries PLC. Annual Report 2024-2025 (company statements) · link · accessed 2026-11-02
17. Hwa Well Textiles (BD) PLC. Annual Report 2024-2025 (company statements) · link · accessed 2026-11-02
18. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-02
19. The Business Standard, 'Bangladesh gets 3 more years before LDC graduation' (30-Oct-2026) · link · accessed 2026-11-02
20. AnalystBro price data (TradingView feed): DSE:QUEENSOUTH daily closes 30-Oct-2025 to 29-Oct-2026; DSE:MHSML, DSE:SIMTEX, DSE:HWAWELLTEX closes 29-Oct-2026 · link · accessed 2026-11-02
21. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-11-02