Xinao Stocks hosted 50 institutions, incl. Zhongou Fund, ABC-CA, Xinhua Fund, etc.

On March 3, 2025, Xinao Stocks disclosed a research visit announcement, stating that the company received research visits from 50 institutions including Zhongou Fund, ABC-CA Fund Management, Xinhua Fund, Guohua Xingyi Insurance Asset Management, and Asia-Pacific Property & Casualty Insurance, among others, on February 1st.

The announcement revealed that two personnel from Xinao Stocks participated in the reception: Yu Xiaolu, Secretary to the Board, and Zhu Yifan, Securities Affairs Representative. The research reception was conducted through telephone conferences and on-site exchanges.

It is understood that Xinao Stocks' current production capacity includes approximately 15,000 tons of woolen spun yarn, 13,000 tons of wool tops, 18,000 tons of modified treatment, and 15,000 tons of dyeing and finishing, with a cashmere yarn capacity of about 3,000 tons. The company plans to gradually release new production capacity this year through the Xinao Vietnam Project Phase I and the Xinao Yinchuan Project. The current price of raw wool materials is at a historically low level, with its trend influenced by factors such as global end-consumer market demand and changes in supply volume.

Xinao Vietnam Subsidiary commenced operations on November 26, 2024. Its "50,000 Spindles High-Grade Spun Yarn Eco-Textile Dyeing and Finishing Project" Phase I, with 20,000 spindles, has entered production, and is expected to form a production capacity of approximately 2,500 tons/year of woolen spun yarn and 5,000 tons/year of dyeing and finishing upon full operation. The delivery time for Xinao's woolen spun yarn is currently within the normal range, with colored yarn taking about 50 days and white yarn about 40 days, although specific times may vary depending on factors such as product type and season. The production capacity of Xinao Vietnam mainly covers spinning and supporting dyeing and finishing businesses, while there are no new production capacity plans for the wool tops business this year.

The company plans to expand product diversity within the spinning industry, building a multi-variety and multi-grade yarn product structure system, especially increasing efforts in the promotion of sports and woven yarn markets, to enhance market influence and share. Regarding capital expenditure planning, the company emphasizes reasonable returns for investors, strictly implements profit distribution policies, and actively rewards shareholders.

Regarding the outlook for wool raw material prices in 2025, Xinao mentioned that prices are at historically low levels, influenced by factors such as global end-consumer market demand and changes in wool supply. In terms of the production progress of the factory in Vietnam, Xinao Vietnam held its opening ceremony on November 26, 2024, and the first production line of its "50,000 Spindles High-Grade Spun Yarn Eco-Textile Dyeing and Finishing Project" Phase I has entered the production stage. It is expected to form a production capacity of approximately 2,500 tons/year of woolen spun yarn and 5,000 tons/year of dyeing and finishing upon full operation. The delivery time for the company's main product, woolen spun yarn, is currently within the normal range, with colored yarn taking about 50 days and white yarn about 40 days, although specific times may vary due to factors such as product type, season, and inventory levels.

The details of the research visit are as follows:

Q: What is the current production capacity of the company?

A: Currently, the company's woolen spun yarn capacity is approximately 15,000 tons (actual, not standardized); wool tops capacity is about 13,000 tons, with about 18,000 tons of modified treatment; dyeing and finishing capacity is approximately 15,000 tons; and cashmere yarn capacity is about 3,000 tons. The Xinao Vietnam Project Phase I and the Xinao Yinchuan Project will gradually and orderly release new production capacity this year.

Q: What is the outlook for wool raw material prices in 2025?

A: Currently, wool prices are at a relatively low level in historical terms. The trend of raw wool material prices is influenced by various factors, including global end-consumer market demand and changes in wool supply.

Q: What is the progress of the production launch at the Vietnam factory?

A: Xinao Vietnam, a subsidiary, held its opening ceremony on November 26, 2024. The first production line of the "50,000 Spindles High-Grade Spun Yarn Eco-Textile Dyeing and Finishing Project" Phase I has entered the production stage. Currently, other production lines in Phase I are undergoing equipment installation and commissioning in stages, with plans to gradually achieve production this year. Upon full operation of the 20,000 spindles in Phase I, it is expected to form a production capacity of approximately 2,500 tons/year (standardized) of woolen spun yarn and 5,000 tons/year of dyeing and finishing. Please refer to the company's announcements for specific details.

Q: Are there any new production capacity plans for the wool tops business this year?

A: There are currently no new production capacity plans for the wool tops business.

Q: What is the current delivery time for the company's main product, woolen spun yarn?

A: The delivery time for the company's main product, woolen spun yarn, is currently within the normal range, with colored yarn taking about 50 days and white yarn about 40 days. Specific delivery times may vary and fluctuate depending on factors such as product type, season, and inventory levels.

Q: What aspects does the company's production capacity in Vietnam mainly cover?

A: Xinao Vietnam's current production capacity is configured for spinning and supporting dyeing and finishing businesses.

Q: What are the company's specific plans for expanding new products in the future?

A: In recent years, the company has implemented a sustainable broadband development strategy, expanding product diversity within the spinning industry, and actively building a multi-variety, multi-grade, and serialized yarn product structure system that covers mid-range, high-end, luxury, knitwear, sports and leisure, and home textile products. This provides global customers with more precise and diversified choices, fully participates in market competition, and aims to capture a larger market share. For example, the company will increase marketing and promotion efforts for products in the sports field, striving to enhance the market influence and share of Xinao products in the outdoor sports sector. It will continue to strengthen the market promotion of woven yarns, seek cooperation with more high-quality customers, promote the research and development of differentiated products, and enhance comprehensive competitive advantages.

Q: Will the company's future capital expenditure plans affect its dividend policy?

A: The company attaches great importance to reasonable investment returns for investors. While balancing sustainable development, it strictly implements profit distribution policies, actively rewards shareholders, and strives to allow all shareholders to share in the growth value of Xinao.