浙江新澳纺织股份有限公司（以下简称"公司"）第六届董事会第二十二次 会议于 2025 年 8 月 22 日在公司会议室以现场方式召开，本次会议通知于 2025 年 8 月 12 日以书面、电话等方式通知全体董事、高级管理人员。会议由董事长 沈建华先生召集并主持，会议应出席董事 9 人，实际出席董事 9 人。本次会议的 召集和召开程序符合《公司法》和《公司章程》的规定，会议合法有效。 证券代码：603889 证券简称：新澳股份 公告编号：2025-034 浙江新澳纺织股份有限公司 第六届董事会第二十二次会议决议公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 一、董事会会议召开情况 公司 2025 年半年度报告全文详见上海证券交易所网站（www.sse.com.cn）， 摘要详见《中国证券报》、《上海证券报》、《证券时报》、《证券日报》。 （二）审议并通过了《关于修订<信息披露管理制度>的议案》 表决结果：同意 9 票、反对 0 票、弃权 0 票。 （三）审议并通过了《关于修订<信息披露暂缓与豁免业务管理制度>的议案》 ...

[Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) This section defines common terms used in the report, including entity names such as the Company, controlling shareholder, wholly-owned subsidiary, and controlled subsidiary, along with their references - This section defines common terms used in the report, including entity names such as the Company, controlling shareholder, wholly-owned subsidiary, and controlled subsidiary, along with their references[12](index=12&type=chunk) [Company Profile and Key Financial Indicators](index=4&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides an overview of the company's basic information, contact details, and significant financial data and indicators for the reporting period [Company Information](index=4&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section provides the company's basic registration information, including its Chinese name, abbreviation, foreign name and its abbreviation, and legal representative - Company's Chinese name: Zhejiang Xinao Textiles Co., Ltd[14](index=14&type=chunk) - Company's Chinese abbreviation: Xinao Shares[14](index=14&type=chunk) - Company's legal representative: Shen Jianhua[15](index=15&type=chunk) [Contact Persons and Information](index=5&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section lists the names, contact addresses, telephone numbers, fax numbers, and email addresses of the company's Board Secretary and Securities Affairs Representative for investor contact - Board Secretary: Yu Xiaolu, Securities Affairs Representative: Zhu Yifan[16](index=16&type=chunk) - Contact number: 0573-88455801, Fax: 0573-88455838[16](index=16&type=chunk) [Brief Introduction to Changes in Basic Information](index=5&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E5%8F%98%E6%9B%B4%E7%AE%80%E4%BB%8B) This section discloses the company's registered address, office address, postal code, website, and email address, stating that there were no historical changes to the registered address during the reporting period - Company's registered and office addresses are both Guanzhuang Bridge, Chongfu Town, Tongxiang City, postal code 314511[17](index=17&type=chunk) - Company website: www.xinaotex.com, Email: xinao@xinaotex.com[17](index=17&type=chunk) [Brief Introduction to Changes in Information Disclosure and Document Custody Locations](index=5&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) This section introduces the newspapers selected by the company for information disclosure, the website address for publishing semi-annual reports, and the location where the company's semi-annual reports are kept, stating no changes occurred during the reporting period - Newspapers selected by the company for information disclosure include "China Securities Journal", "Shanghai Securities News", "Securities Times", and "Securities Daily"[18](index=18&type=chunk) - Website address for publishing semi-annual reports is www.sse.com.cn[18](index=18&type=chunk) [Overview of Company Shares](index=5&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) This section provides the type of company shares, listing exchange, stock abbreviation, and stock code, noting no prior changes to the stock abbreviation - Company shares are A-shares, listed on the Shanghai Stock Exchange[19](index=19&type=chunk) - Stock abbreviation: Xinao Shares, Stock code: 603889[19](index=19&type=chunk) [Company's Key Accounting Data and Financial Indicators](index=5&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section details the company's key accounting data and financial indicators for the first half of 2025 compared to the same period last year, showing a slight decrease in operating revenue but growth in total profit, net profit attributable to shareholders, and non-recurring net profit, with increases in total assets and net assets, though operating cash flow significantly declined 2025 Semi-Annual Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2.55 billion Yuan | 2.56 billion Yuan | -0.08 | | Total Profit | 342.22 million Yuan | 320.23 million Yuan | 6.86 | | Net Profit Attributable to Listed Company Shareholders | 270.64 million Yuan | 266.18 million Yuan | 1.67 | | Net Profit Attributable to Listed Company Shareholders After Deducting Non-Recurring Gains and Losses | 268.10 million Yuan | 259.87 million Yuan | 3.16 | | Net Cash Flow from Operating Activities | -10.59 million Yuan | 63.38 million Yuan | -116.71 | | Net Assets Attributable to Listed Company Shareholders | 3.50 billion Yuan | 3.40 billion Yuan | 2.76 | | Total Assets | 6.54 billion Yuan | 5.69 billion Yuan | 14.92 | 2025 Semi-Annual Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.37 | 0.37 | - | | Diluted Earnings Per Share (Yuan/share) | 0.38 | 0.37 | 2.70 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (Yuan/share) | 0.37 | 0.36 | 2.78 | | Weighted Average Return on Net Assets (%) | 7.69 | 8.14 | Decrease of 0.45 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 7.62 | 7.95 | Decrease of 0.33 percentage points | [Non-Recurring Gains and Losses Items and Amounts](index=6&type=section&id=%E4%B9%9D%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) This section discloses the specific non-recurring gains and losses items and their amounts for the first half of 2025, totaling **2.54 million Yuan**, primarily including government subsidies, gains/losses from disposal of non-current assets, and fair value changes of financial assets and liabilities 2025 Semi-Annual Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -0.32 million | | Government Grants Included in Current Profit or Loss | 6.27 million | | Gains/Losses from Changes in Fair Value of Financial Assets and Liabilities and Disposal of Financial Assets and Liabilities, Except for Hedging Instruments | -0.28 million | | Other Non-Operating Income and Expenses Apart from the Above Items | -0.93 million | | Less: Income Tax Impact | 0.76 million | | Minority Interest Impact (After Tax) | 1.44 million | | **Total** | **2.54 million** | [Management Discussion and Analysis](index=7&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides a comprehensive discussion and analysis of the company's business operations, financial performance, and key factors influencing its results during the reporting period [Explanation of the Company's Industry and Main Business Operations during the Reporting Period](index=7&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) This section details the development of the textile industry and its wool and cashmere sub-sectors in the first half of 2025, covering production, domestic sales, exports, investment, and efficiency, along with the company's main businesses, product uses, and operating model [Industry Development during the Reporting Period](index=7&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%91%E5%B1%95%E6%83%85%E5%86%B5) In the first half of 2025, the textile industry saw stable production, moderate domestic sales growth, resilient but pressured exports, and steady investment, though efficiency recovery faced challenges; the wool textile industry experienced production declines and market pressure, while the cashmere industry saw a decrease in total imports and exports but an increase in exports - In the first half of 2025, the industrial added value of textile enterprises above designated size increased by **3.1%** year-on-year, a slowdown of **1.5 percentage points** compared to the same period last year[27](index=27&type=chunk) - In the first half of the year, per capita clothing consumption expenditure of Chinese residents increased by **2.1%** year-on-year, and the total retail sales of clothing, footwear, hats, and knitwear above designated size increased by **3.1%** year-on-year[28](index=28&type=chunk) - In the first half of the year, China's total textile and apparel exports amounted to **143.98 billion USD**, a year-on-year increase of **0.8%**; of which textile exports increased by **1.8%**, and apparel exports decreased by **0.2%**[28](index=28&type=chunk) - From January to April 2025, the output of wool yarn by enterprises above designated size decreased by **6.4%** year-on-year, and the output of wool fabrics decreased by **24.9%** year-on-year[30](index=30&type=chunk) - From January to June 2025, the total import and export value of cashmere raw materials and products was **796.55 million USD**, a year-on-year decrease of **4.65%**; total exports were **674.75 million USD**, a year-on-year increase of **7.93%**; total imports were **121.80 million USD**, a year-on-year decrease of **42.06%**[44](index=44&type=chunk)[45](index=45&type=chunk) [Company's Main Business, Main Products and Their Uses](index=11&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E3%80%81%E4%B8%BB%E8%A6%81%E4%BA%A7%E5%93%81%E5%8F%8A%E5%85%B6%E7%94%A8%E9%80%94) The company primarily engages in the research, development, production, and sales of wool yarn, wool tops, and cashmere yarn, with products mainly used for knitted apparel and woven fabrics of world's mid-to-high-end brands, also providing wool top and cashmere processing services - The company's main business is the research, development, production, and sales of wool yarn, wool tops, and cashmere yarn[46](index=46&type=chunk) - Main products include worsted, woolen pure wool and wool blend yarns, woolen, worsted pure cashmere and cashmere blend yarns, various ordinary combed wool tops, mercerized wool tops, anti-shrinkage wool tops, and Basolan wool tops, as well as modification treatment, dyeing and finishing, and cashmere processing services[46](index=46&type=chunk) - These products are mainly used for world's mid-to-high-end brands of knitted apparel and woven fabrics, such as cashmere sweaters, wool sweaters, wool underwear, T-shirts, and wool socks[46](index=46&type=chunk) [Company's Business Model](index=11&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E5%85%AC%E5%8F%B8%E7%9A%84%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company operates with Xinao Shares as the main entity, with each subsidiary specializing in production and independent sales, covering procurement, production, and sales, emphasizing high-quality raw materials, self-production, and a "key account strategy" for both domestic and international markets - The company's business model is centered on Xinao Shares, with each major subsidiary specializing in production and independent sales[46](index=46&type=chunk) - Procurement model: primarily sources raw wool from Australia, New Zealand, and other origins, and dynamically manages cashmere market conditions based on origin advantages[46](index=46&type=chunk)[47](index=47&type=chunk) - Production model: primarily self-production, supplemented by outsourced production, chosen based on factors such as capacity, delivery cycle, and production process[47](index=47&type=chunk) - Sales model: balances domestic and international sales, with customers categorized as brand apparel manufacturers and OEM apparel manufacturers, settling payments through direct sales or designated supplier models[47](index=47&type=chunk) [Market Position](index=12&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E5%B8%82%E5%9C%BA%E5%9C%B0%E4%BD%8D) The company is a leading enterprise in the wool textile sub-sector, recognized as a manufacturing single-item champion demonstration enterprise, with its subsidiary Xinao Cashmere being a "chain leader" in Ningxia's cashmere deep processing, holding numerous national and provincial honors and R&D centers - The company is one of the leading enterprises in the wool textile sub-sector, a high-tech enterprise, and a national green factory[48](index=48&type=chunk) - The company was recognized as a manufacturing single-item champion demonstration enterprise, winning the "Combed Wool Yarn Single-Item Champion" in manufacturing[48](index=48&type=chunk) - Subsidiary Xinao Cashmere is the first "chain leader" enterprise in Ningxia Hui Autonomous Region for cashmere deep processing[48](index=48&type=chunk) - It has established a National Wool Textile Yarn Product Development Base, China Wool Textile Industry Combed Wool Yarn Technology R&D Center, among others[48](index=48&type=chunk) [Discussion and Analysis of Operations](index=12&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In the first half of 2025, facing a complex external environment, the company focused on its main business, sought progress while maintaining stability, and achieved steady development by advancing globalization, optimizing capacity, deepening refined management, strengthening talent development and R&D innovation, reinforcing Party building, and enhancing ESG management, with key financial indicators showing growth - In the first half of 2025, the company achieved operating revenue of **2.55 billion Yuan**, a year-on-year decrease of **0.08%**; total profit of **342.22 million Yuan**, a year-on-year increase of **6.86%**; and net profit attributable to shareholders of **270.64 million Yuan**, a year-on-year increase of **1.67%**[49](index=49&type=chunk) - The company's main business gross profit margin increased to **21.44%**, a year-on-year increase of **0.82 percentage points**[49](index=49&type=chunk) - The company steadily advanced its capacity planning, with the first phase of Xinao Vietnam's "50,000-spindle high-end worsted ecological yarn spinning and dyeing project" gradually commencing production, and Xinao Yinchuan's "20,000-spindle high-quality worsted wool (cashmere) yarn construction project" expected to release capacity in the second half of the year[51](index=51&type=chunk)[52](index=52&type=chunk) - The company continued to deepen its global market layout, participated in international exhibitions, and initiated a "key account strategy"[52](index=52&type=chunk) - The company was awarded the "Zhejiang Province Advanced Intelligent Factory" title, and its subsidiary Xinao Cashmere received multiple honors including "2025 Autonomous Region Digital Workshop, Intelligent Factory" and "2024 Annual Autonomous Region Innovative Benchmark Enterprise"[53](index=53&type=chunk) - The company deeply promoted its sustainable broadband development strategy, innovatively developing diversified products such as X DYNAMIC SOUL outdoor sports yarns and XINAO x LincSpun high-performance Merino yarns[54](index=54&type=chunk) - The company practiced green public welfare, enhanced ESG management, joined the "Ten-Year Tree Planting and Heart Cultivation Plan", with subsidiary Xinao Vietnam implementing a biomass fuel replacement project, Xinzonghe investing in photovoltaic power generation, and Houyuan Textile adopting plant dyeing processes[56](index=56&type=chunk)[57](index=57&type=chunk) - The company achieved a Huazheng ESG rating of **AA** and a Wind ESG rating of **A**, and was selected for Huazheng's "2025 A-share Listed Companies Optional Consumer Industry ESG Performance TOP20" list[57](index=57&type=chunk) [Analysis of Core Competitiveness during the Reporting Period](index=14&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness remained largely unchanged, primarily demonstrated in its global layout, service to premium clients, technological R&D and design, integrated industrial chain, diversified product development, digital empowerment, low-carbon sustainable development, quality and service, and scale and regional advantages - The company has **8** production enterprises, multiple trading companies, technology development and sales centers, and marketing teams globally, forming complementary advantages in domestic and international capacity and markets[58](index=58&type=chunk) - Leveraging extensive industry experience and R&D design capabilities, the company has become a designated yarn supplier for numerous premium brand clients and launched the X DYNAMIC SOUL outdoor sports series of wool products, expanding wool application scenarios[60](index=60&type=chunk) - The company is a high-tech enterprise with multiple national and provincial R&D centers, employing advanced processes such as compact spinning and Siro spinning to develop differentiated, functional, and high-value-added products[60](index=60&type=chunk) - The company is one of the few wool textile industry suppliers integrating wool washing, top making, modification treatment, spinning, dyeing and finishing, and quality inspection, demonstrating strong supply chain control and significant advantages in new product R&D[62](index=62&type=chunk) - The company implements a sustainable broadband development strategy, forming a multi-brand, multi-variety, multi-grade, and serialized yarn product structure system through initiatives such as establishing Ningxia Xinao Cashmere and acquiring UK Duncan[65](index=65&type=chunk) - The company actively pursues digital transformation, focusing on "smart processes, intelligent manufacturing, smart warehousing, and smart logistics," earning the title of "Zhejiang Province Advanced Intelligent Factory"[65](index=65&type=chunk) - The company actively promotes low-carbon sustainable development, was among the first to launch carbon footprint projects, adheres to the Zero Discharge of Hazardous Chemicals (ZDHC) standard, was rated as a "Green Factory," and continuously compiles and publishes ESG reports[66](index=66&type=chunk)[67](index=67&type=chunk) - The company has obtained multiple quality management and environmental protection certifications, providing personalized customization, small-batch multi-variety, and rapid response services, earning favor from domestic and international mid-to-high-end brand clients[67](index=67&type=chunk)[68](index=68&type=chunk) - As a global leader in the wool textile sub-sector, the company expands capacity through capital market platforms, increases market share, and leverages economies of scale[68](index=68&type=chunk) - Located in Tongxiang City, Zhejiang, the company benefits from the Puyuan Woolen Sweater Market, a complete wool textile industry ecosystem, convenient transportation, and policy support for the textile industry from Zhejiang Province and Ningxia Hui Autonomous Region[68](index=68&type=chunk)[69](index=69&type=chunk) [Key Operating Performance during the Reporting Period](index=17&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) This section analyzes the changes in the company's main financial statement items, including operating revenue, costs, expenses, and cash flows, explaining the primary reasons for each change, and also details the asset and liability status and overseas asset situation [Analysis of Main Business](index=17&type=section&id=%28%E4%B8%80%29%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) This section analyzes the changes and reasons for operating revenue, operating costs, selling expenses, administrative expenses, financial expenses, R&D expenses, and net cash flows from operating, investing, and financing activities during the reporting period 2025 Semi-Annual Financial Statement Related Item Changes Analysis | Item | Current Period Amount (Yuan) | Prior Year Period Amount (Yuan) | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2.55 billion | 2.56 billion | -0.08 | | Operating Cost | 2.00 billion | 2.02 billion | -1.03 | | Selling Expenses | 49.19 million | 42.99 million | 14.44 | | Administrative Expenses | 78.66 million | 68.78 million | 14.38 | | Financial Expenses | 3.68 million | 24.84 million | -85.19 | | R&D Expenses | 58.10 million | 59.59 million | -2.49 | | Net Cash Flow from Operating Activities | -10.59 million | 63.38 million | -116.71 | | Net Cash Flow from Investing Activities | -172.12 million | -337.93 million | Not applicable | | Net Cash Flow from Financing Activities | 498.10 million | 99.57 million | 400.25 | - Selling expenses increased by **14.44%** year-on-year, primarily due to increased employee compensation[71](index=71&type=chunk) - Administrative expenses increased by **14.38%** year-on-year, mainly due to increased employee compensation expenses and higher initial management costs as subsidiaries Xinao Vietnam and Xinao Yinchuan gradually commenced production[72](index=72&type=chunk) - Financial expenses decreased by **85.19%** year-on-year, primarily because the company realized exchange gains of **16.32 million Yuan** in the current period due to foreign currency exchange rate fluctuations, an increase of **25.65 million Yuan** compared to exchange losses in the same period last year[72](index=72&type=chunk) - Net cash flow from operating activities decreased by **116.71%** year-on-year, mainly due to increased cash paid for goods and services and higher initial cost expenditures as subsidiaries commenced production[72](index=72&type=chunk) - Net cash flow from financing activities increased by **400.25%** year-on-year, primarily due to the introduction of **182 million Yuan** in new shareholder capital by subsidiary UK Duncan and a year-on-year increase of **206 million Yuan** in net bank borrowings in the current period[72](index=72&type=chunk) [Analysis of Assets and Liabilities](index=18&type=section&id=%28%E4%B8%89%29%20%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) This section thoroughly analyzes the main changes in the company's assets and liabilities at the end of the reporting period, including monetary funds, accounts receivable, short-term borrowings, and minority interests, explaining the reasons for these changes, and also discloses the scale of overseas assets and the restricted status of major assets 2025 Semi-Annual Asset and Liability Status Changes | Item Name | Current Period End Amount (Yuan) | Prior Year End Amount (Yuan) | Change from Prior Year End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 859.48 million | 531.91 million | 61.58 | Increase in net bank borrowings and capital increase by UK Duncan | | Trading Financial Assets | 0 | 54.61 million | -100.00 | Transferable large-denomination time deposits matured and collected | | Accounts Receivable | 744.15 million | 451.28 million | 64.90 | Increase in accounts receivable for goods not yet settled at period-end | | Short-Term Borrowings | 1.13 billion | 487.86 million | 130.87 | Increase in bank borrowings | | Minority Interests | 341.13 million | 147.64 million | 131.05 | Introduction of new shareholders by UK Duncan | - Overseas assets amounted to **1.28 billion Yuan**, accounting for **19.65%** of total assets[76](index=76&type=chunk) 2025 Semi-Annual Major Asset Restriction Status | Item | Period End Book Value (Yuan) | Restriction Type | Reason for Restriction | | :--- | :--- | :--- | :--- | | Monetary Funds | 7.04 million | Margin | Bill margin | | Fixed Assets | 238.36 million | Mortgage | Mortgage guarantee | | Intangible Assets | 54.51 million | Mortgage | Mortgage guarantee | [Analysis of Investment Status](index=20&type=section&id=%28%E5%9B%9B%29%20%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) This section discloses the fair value measured financial assets, including the beginning and end balances and changes in transferable time deposits and accounts receivable financing 2025 Semi-Annual Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (Yuan) | Fair Value Change Gain/Loss for Current Period (Yuan) | Cumulative Fair Value Change Included in Equity (Yuan) | Current Period Purchase Amount (Yuan) | Current Period Sale/Redemption Amount (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Transferable Time Deposits | 54.61 million | 0 | 0 | 0 | 50.00 million | 4.61 million | | Accounts Receivable Financing | 31.91 million | 0 | 6.78 million | 0 | 0 | 38.70 million | | **Total** | **86.52 million** | **0** | **6.78 million** | **0** | **50.00 million** | **43.30 million** | [Analysis of Major Holding and Participating Companies](index=22&type=section&id=%28%E5%85%AD%29%20%E4%B8%BB%E8%90%A5%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This section lists the financial data of major subsidiaries Xinao Cashmere and Houyuan Textile, which significantly impact the company's net profit, including registered capital, total assets, net assets, operating revenue, operating profit, and net profit 2025 Semi-Annual Financial Data of Major Holding and Participating Companies | Company Name | Company Type | Main Business | Registered Capital (Ten Thousand Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xinao Cashmere | Subsidiary | Production and sales of cashmere products, textile raw materials and products | 120 million | 1.49 billion | 426.30 million | 617.54 million | 48.63 million | 43.28 million | | Houyuan Textile | Subsidiary | Dyeing and finishing services for wool tops, yarns, etc | 124.52 million | 687.65 million | 650.83 million | 145.45 million | 44.16 million | 36.27 million | [Other Disclosure Matters](index=22&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) This section discloses the company's potential risks, including macroeconomic risks, raw material price fluctuation risks (wool and cashmere), exchange rate fluctuation risks, and overseas investment risks [Potential Risks](index=22&type=section&id=%28%E4%B8%80%29%20%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%AF%B9%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces major risks such as a complex and volatile macroeconomic environment, price fluctuations of wool and cashmere, exchange rate fluctuations between RMB and USD/EUR, and overseas investment risks for the Vietnam project, which it addresses through optimizing industrial layout, stable procurement strategies, and monitoring foreign exchange market changes - The company faces macroeconomic risks such as insufficient global economic growth momentum and challenges in international economic cycles[82](index=82&type=chunk) - Risks of price fluctuations in major raw materials, wool and cashmere, which may affect raw material costs and product prices[82](index=82&type=chunk)[83](index=83&type=chunk) - The company's export revenue and imported raw materials are mainly settled in USD and EUR, exposing it to exchange rate fluctuation risks[83](index=83&type=chunk) - The Vietnam project carries management, operational, and market risks due to differences in laws and regulations, policy systems, business environments, and cultural characteristics[83](index=83&type=chunk) [Corporate Governance, Environment and Society](index=24&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) This section covers changes in the company's directors and senior management, profit distribution plans, equity incentive plans, environmental information disclosure, and efforts in poverty alleviation and rural revitalization [Changes in Company Directors and Senior Management](index=24&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, there was a change in the company's board of directors, with Shen Jianbo resigning as a non-independent director due to work adjustments but continuing as Deputy General Manager, and Zhang Linfeng being elected as an employee representative director to the Sixth Board of Directors - Shen Jianbo resigned as a non-independent director of the Sixth Board of Directors due to work adjustments, but continues to serve as the company's Deputy General Manager[86](index=86&type=chunk)[87](index=87&type=chunk) - Zhang Linfeng was elected as an employee representative director to the Sixth Board of Directors through the employee representative assembly[86](index=86&type=chunk)[87](index=87&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=24&type=section&id=%E4%BA%8C%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company's proposed semi-annual profit distribution or capital reserve conversion plan is "none," meaning no profit distribution or capital reserve conversion will be carried out - The company's proposed semi-annual profit distribution or capital reserve conversion plan is "none"[88](index=88&type=chunk) - The number of bonus shares, cash dividends, and conversion shares per 10 shares are all **0**[88](index=88&type=chunk) [Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=24&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D) On June 17, 2025, the company approved the "Proposal on Adjusting the Repurchase Price of Restricted Shares and Repurchasing and Canceling Part of Restricted Shares," intending to adjust the repurchase price and repurchase and cancel **193,500** restricted shares already granted but not yet unblocked for **8** incentive recipients - The company approved the proposal to adjust the repurchase price of restricted shares and repurchase and cancel part of restricted shares[89](index=89&type=chunk) - This involves **193,500** restricted shares already granted but not yet unblocked for **8** incentive recipients[89](index=89&type=chunk) [Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=25&type=section&id=%E5%9B%9B%E3%80%81%E7%BA%B3%E5%85%A5%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E4%BE%9D%E6%B3%95%E6%8A%AB%E9%9C%B2%E4%BC%81%E4%B8%9A%E5%90%8D%E5%8D%95%E7%9A%84%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E4%B8%BB%E8%A6%81%E5%AD%90%E5%85%AC%E5%8F%B8%E7%9A%84%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%83%85%E5%86%B5) Two of the company's subsidiaries, Zhejiang Xinzonghe Wool Co., Ltd. and Zhejiang Houyuan Textile Co., Ltd., are included in the list of enterprises required to disclose environmental information by law, which can be found on the Zhejiang Provincial Department of Ecology and Environment's Enterprise Environmental Information Disclosure System - The company has **2** subsidiaries included in the list of enterprises required to disclose environmental information by law[91](index=91&type=chunk) - The included subsidiaries are Zhejiang Xinzonghe Wool Co., Ltd. and Zhejiang Houyuan Textile Co., Ltd[91](index=91&type=chunk) - Environmental information disclosure reports can be found on the Zhejiang Provincial Department of Ecology and Environment's Enterprise Environmental Information Disclosure System[91](index=91&type=chunk) [Specific Progress in Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work](index=25&type=section&id=%E4%BA%94%E3%80%81%E5%B7%A9%E5%9B%BA%E6%8B%93%E5%B1%95%E8%84%B1%E8%B4%AB%E6%94%BB%E5%9D%9A%E6%88%90%E6%9E%9C%E3%80%81%E4%B9%A1%E6%9D%91%E6%8C%AF%E5%85%B4%E7%AD%89%E5%B7%A5%E4%BD%9C%E5%85%B7%E4%BD%93%E6%83%85%E5%86%B5) During the reporting period, the company, through its subsidiary Xinao Cashmere, continued to contribute to rural revitalization by purchasing rice, flour, and oil to assist disadvantaged groups, collaborating with the Lingwu City People's Congress Standing Committee Office on "one household, one policy" assistance, and jointly with the High-tech Zone Non-public Party Committee, visiting disadvantaged Party members - The company, through its subsidiary Xinao Cashmere, purchased rice, flour, and oil to precisely assist local disadvantaged groups, prioritizing local agricultural products[91](index=91&type=chunk) - Collaborated with the Lingwu City People's Congress Standing Committee Office to implement "one household, one policy" assistance for particularly disadvantaged groups, providing material aid and addressing employment issues[91](index=91&type=chunk) - Jointly with the High-tech Zone Non-public Party Committee, visited disadvantaged Party members to convey organizational warmth and resolve practical difficulties[91](index=91&type=chunk) [Significant Matters](index=26&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section details the company's significant events, including the fulfillment of commitments, non-operating fund occupation by related parties, illegal guarantees, major lawsuits and arbitrations, and the performance of major contracts [Fulfillment of Commitments](index=26&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) This section discloses the fulfillment of commitments by the company's actual controller, controlling shareholder, and the company itself regarding non-compete clauses, social insurance and housing provident fund contributions, fund transfers, use of raised funds, truthfulness of the prospectus, and equity incentives, all of which have been strictly fulfilled and are either completed or long-term effective - Controlling shareholder and actual controller Shen Jianhua committed not to directly or indirectly engage in business activities that compete with Xinao Shares, and to prioritize investment opportunities for Xinao Shares[93](index=93&type=chunk)[94](index=94&type=chunk) - Controlling shareholder and actual controller Shen Jianhua committed to fully bear the supplementary social insurance and housing provident fund contributions for employees, strictly enforce regulations on related party fund transfers, and not invest raised funds in real estate business[94](index=94&type=chunk) - The company's directors, supervisors, and senior management committed to compensate investors for losses in accordance with the law if the prospectus contains false records, misleading statements, or major omissions[94](index=94&type=chunk) - The company committed not to provide loans or any other form of financial assistance to incentive recipients for acquiring restricted shares under the equity incentive plan[95](index=95&type=chunk) - All commitments have been strictly fulfilled and are either completed or long-term effective[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) [Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties during the Reporting Period](index=28&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties - During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties[96](index=96&type=chunk) [Illegal Guarantees](index=28&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) During the reporting period, the company did not provide any external guarantees in violation of prescribed decision-making procedures - During the reporting period, there was no external guarantee provided in violation of prescribed decision-making procedures[96](index=96&type=chunk) [Major Lawsuits and Arbitrations](index=29&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A1%B9) During the reporting period, the company had no major lawsuits or arbitrations - The company had no major lawsuits or arbitrations during the current reporting period[97](index=97&type=chunk) [Major Contracts and Their Performance](index=30&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) This section discloses the company's significant guarantees to its subsidiaries during the reporting period, with a total guarantee amount of **1.49 billion Yuan**, representing **38.71%** of the company's net assets [Major Guarantees Performed and Not Yet Fully Performed during the Reporting Period](index=31&type=section&id=%28%E4%BA%8C%29%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E7%9A%84%E5%8F%8A%E5%B0%9A%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E9%87%8D%E5%A4%A7%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) During the reporting period, the total amount of guarantees provided to subsidiaries was **1.36 billion Yuan**, with an outstanding guarantee balance of **1.49 billion Yuan** at the end of the period, accounting for **38.71%** of the company's net assets, including **1.14 billion Yuan** in debt guarantees for guaranteed entities with an asset-liability ratio exceeding **70%** - The total amount of guarantees provided to subsidiaries during the reporting period was **1.36 billion Yuan**[100](index=100&type=chunk) - The total outstanding guarantee balance for subsidiaries at the end of the reporting period was **1.49 billion Yuan**[100](index=100&type=chunk) - The total guarantee amount accounted for **38.71%** of the company's net assets[100](index=100&type=chunk) - The amount of debt guarantees provided for guaranteed entities with an asset-liability ratio exceeding **70%** was **1.14 billion Yuan**[100](index=100&type=chunk) [Share Changes and Shareholder Information](index=32&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section provides details on changes in the company's share capital, the total number of shareholders, and the shareholding status of the top ten shareholders and directors/senior management [Changes in Share Capital](index=32&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[102](index=102&type=chunk) [Shareholder Information](index=32&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **14,731** common shareholders. This section discloses the shareholding status of the top ten shareholders and top ten unrestricted shareholders, with controlling shareholder Zhejiang Xinao Industrial Co., Ltd. holding **30.50%** and actual controller Shen Jianhua holding **14.22%**, and also lists the shareholding quantities and restriction conditions for the top ten restricted shareholders - Total number of common shareholders as of the end of the reporting period: **14,731** households[103](index=103&type=chunk) Top Ten Shareholders' Shareholding as of the End of the Reporting Period | Shareholder Name | Period End Shareholding (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Zhejiang Xinao Industrial Co., Ltd. | 222,768,000 | 30.50 | Domestic Non-State-Owned Legal Person | | Shen Jianhua | 103,872,587 | 14.22 | Domestic Natural Person | | Huitianfu Fund Management Co., Ltd. - Social Security Fund 16032 Portfolio | 12,736,022 | 1.74 | Other | | Jia Weiping | 12,590,313 | 1.72 | Domestic Natural Person | | Xia Kunsong | 11,711,157 | 1.60 | Domestic Natural Person | | Taikang Life Insurance Co., Ltd. - Dividend - Individual Dividend - 019L - FH002 Shanghai | 9,919,000 | 1.36 | Other | | Tang Mei | 9,890,000 | 1.35 | Domestic Natural Person | | Taikang Life Insurance Co., Ltd. - Traditional - Ordinary Insurance Products - 019L - CT001 Shanghai | 9,411,440 | 1.29 | Other | | Chen Yaohua | 9,297,828 | 1.27 | Domestic Natural Person | | Wu Li | 7,604,646 | 1.04 | Domestic Natural Person | - The top ten restricted shareholders include Hua Xinzong, Liu Peiyi, Wang Hua, Shen Jianbo, all of whom are company equity incentive recipients[107](index=107&type=chunk) [Information on Directors and Senior Management](index=34&type=section&id=%E4%B8%89%E3%80%81%E8%91%A3%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%83%85%E5%86%B5) This section discloses the changes in shareholdings of directors and senior management during the reporting period, noting that Director and Executive Deputy General Manager Liu Peiyi's shareholding decreased by **220,000** shares due to personal financial needs Changes in Shareholdings of Directors and Senior Management | Name | Position | Beginning Period Shareholding (shares) | Ending Period Shareholding (shares) | Change in Shareholding during Reporting Period (shares) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Liu Peiyi | Director and Executive Deputy General Manager | 909,640 | 689,640 | -220,000 | Personal financial needs | [Bond-Related Information](index=36&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms that the company has no corporate bonds (including enterprise bonds), non-financial enterprise debt financing instruments, or convertible corporate bonds - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[112](index=112&type=chunk) - The company has no convertible corporate bonds[112](index=112&type=chunk) [Financial Report](index=37&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for both consolidated and parent company levels, along with detailed notes on accounting policies, tax items, and financial statement items [Audit Report](index=37&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This semi-annual report is unaudited - This semi-annual report is unaudited[5](index=5&type=chunk) [Financial Statements](index=37&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the company's consolidated and parent company balance sheets, income statements, and cash flow statements for the first half of 2025, as well as consolidated and parent company statements of changes in owners' equity, comprehensively presenting the company's financial position, operating results, and cash flow situation - As of June 30, 2025, the company's consolidated total assets were **6.54 billion Yuan**, consolidated total liabilities were **2.70 billion Yuan**, and consolidated total owners' equity was **3.84 billion Yuan**[38](index=38&type=chunk)[39](index=39&type=chunk) - From January to June 2025, the company's consolidated total operating revenue was **2.55 billion Yuan**, consolidated total profit was **342.22 million Yuan**, and net profit attributable to parent company shareholders was **270.64 million Yuan**[41](index=41&type=chunk)[42](index=42&type=chunk) - From January to June 2025, the company's consolidated net cash flow from operating activities was **-10.59 million Yuan**, net cash flow from investing activities was **-172.12 million Yuan**, and net cash flow from financing activities was **498.10 million Yuan**[46](index=46&type=chunk) [Company Basic Information](index=61&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) This section introduces the company's establishment, registration information, stock listing status, industry, and main operating activities and products, clarifying its role as a wool textile industry enterprise primarily engaged in the production, sales, and related processing services of wool tops and wool yarns - Zhejiang Xinao Textiles Co., Ltd. was established on December 19, 2007, and listed on the Shanghai Stock Exchange on December 31, 2014[149](index=149&type=chunk) - The company's registered capital is **730.49 million Yuan**, with a total of **730.49 million** shares[149](index=149&type=chunk) - The company belongs to the wool textile industry, with main operating activities including the production and sales of wool tops and wool yarns, wholesale and agency sales of textile raw materials and products, and export of self-produced wool yarns and wool fabrics[149](index=149&type=chunk) - Main products or services provided include worsted wool yarn, cashmere, wool tops, modification treatment, dyeing and finishing, and cashmere processing[149](index=149&type=chunk) [Basis of Financial Statement Preparation](index=61&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The company's financial statements are prepared on a going concern basis, and there are no matters or circumstances that raise significant doubts about its ability to continue as a going concern for the 12 months from the end of the reporting period - The company's financial statements are prepared on a going concern basis[151](index=151&type=chunk) - There are no matters or circumstances that raise significant doubts about the company's ability to continue as a going concern for the 12 months from the end of the reporting period[152](index=152&type=chunk) [Significant Accounting Policies and Estimates](index=61&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the company's specific accounting policies and estimates for financial instrument impairment, inventories, depreciation of fixed assets, construction in progress, intangible assets, and revenue recognition, covering business combinations, cash and cash equivalents, foreign currency transactions, financial instrument classification and measurement, allowance for doubtful accounts, inventory write-downs, long-term equity investments, depreciation of fixed assets, construction in progress, capitalization of borrowing costs, amortization of intangible assets, R&D expenses, long-term deferred expenses, contract liabilities, employee benefits, provisions, share-based payments, revenue recognition, government grants, deferred income tax assets/liabilities, and leases - The company's financial statements comply with enterprise accounting standards and truly and completely reflect its financial position[154](index=154&type=chunk) - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, with a short operating cycle, and **12 months** are used as the liquidity classification standard for assets and liabilities[155](index=155&type=chunk)[156](index=156&type=chunk) - The company and its domestic subsidiaries use RMB as their functional currency, while overseas subsidiaries use the currency of their primary economic environment[157](index=157&type=chunk) - The company's financial assets are initially classified into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[164](index=164&type=chunk) - Allowance for doubtful accounts for accounts receivable is accrued based on aging: **5%** for within 1 year, **10%** for 1-2 years, **20%** for 2-3 years, **30%** for 3-4 years, **50%** for 4-5 years, and **100%** for over 5 years[178](index=178&type=chunk) - Fixed assets are depreciated using the straight-line method, with depreciation periods of **5-20 years** for buildings, **10 years** for machinery and equipment, **5 years** for transportation vehicles, and **5 years** for other equipment[197](index=197&type=chunk) - Intangible assets are amortized using the straight-line method, with amortization periods of **50 years** for land use rights, **5-10 years** for management software, **5 years** for emission rights, and **10 years** for patent use rights[202](index=202&type=chunk) - Revenue recognition principle is to recognize revenue when the customer obtains control of the related goods or services, with domestic sales based on signed receipts and export sales based on bills of lading[222](index=222&type=chunk)[223](index=223&type=chunk) [Taxation](index=83&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) This section details the company's main tax categories and rates, including VAT, urban maintenance and construction tax, education surcharge, local education surcharge, corporate income tax, and property tax, also disclosing the income tax rates for different taxable entities and the tax incentives enjoyed by the company - The company's main tax categories include VAT (domestic trade general goods tax rate of **13%**), urban maintenance and construction tax (**5%**, **7%**), education surcharge (**3%**), local education surcharge (**2%**), corporate income tax, and property tax (**1.2%**, **12%**)[234](index=234&type=chunk) Corporate Income Tax Rates for Different Taxable Entities | Taxable Entity Name | Income Tax Rate (%) | | :--- | :--- | | Company, Houyuan Textile, Xinao Cashmere | 15% | | Hongde Cashmere, Jiaxing Feixun, Xinao Vietnam | 20% | | Taiyuan International | 30% | | Xinao Hong Kong | 8.25%, 16.5% | | Xinao Europe | 24% | | UK Duncan, Xinao UK, Kinross Duncan | 19%, 25% | | Other taxable entities not listed above | 25% | - The company and Houyuan Textile are recognized as high-tech enterprises, and their corporate income tax is levied at a reduced rate of **15%** for the year 2025[237](index=237&type=chunk) - Xinao Cashmere enjoys the Western Development policy, with its income taxed at a reduced rate of **15%** for corporate income tax, and also benefits from exemptions or halving of the local share of tax[237](index=237&type=chunk)[238](index=238&type=chunk) - Hongde Cashmere and Jiaxing Feixun companies qualify as small-profit enterprises, and for the year 2025, their taxable income is reduced by **25%** and taxed at a rate of **20%** for corporate income tax[238](index=238&type=chunk) - The company, Houyuan Textile, and Xinao Cashmere qualify for the **5%** additional VAT deduction policy for advanced manufacturing enterprises[239](index=239&type=chunk) - Xinao Vietnam enjoys corporate income tax exemption during its **3-year** start-up period and **2-year** tax-free period, and a **50%** reduction during the **4-year** reduced tax period, along with a preferential tax rate of **17%**[240](index=240&type=chunk) [Notes to Consolidated Financial Statement Items](index=85&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes and explanations for each asset, liability, owner's equity, revenue, cost, and expense item in the consolidated financial statements, including period-end balances, beginning-period balances, current period changes, and reasons for changes, offering specific basis for understanding the company's financial position and operating results - The period-end balance of monetary funds was **859.48 million Yuan**, an increase of **61.58%** from the beginning of the period, mainly due to a year-on-year increase in net bank borrowings and the capital increase and introduction of new shareholders by UK Duncan in the current period[74](index=74&type=chunk)[242](index=242&type=chunk) - The period-end book value of accounts receivable was **744.15 million Yuan**, an increase of **64.90%** from the beginning of the period, mainly due to an increase in accounts receivable for goods not yet settled at the end of the period[74](index=74&type=chunk)[248](index=248&type=chunk) - The period-end book value of inventories was **2.19 billion Yuan**, an increase of **10.30%** from the beginning of the period, primarily composed of raw materials, work-in-progress, and finished goods[278](index=278&type=chunk) - The period-end balance of short-term borrowings was **1.13 billion Yuan**, an increase of **130.87%** from the beginning of the period, mainly due to an increase in bank borrowings during the reporting period[74](index=74&type=chunk)[327](index=327&type=chunk) - Operating revenue for the current period was **2.55 billion Yuan**, a slight decrease of **0.08%** compared to the previous period[367](index=367&type=chunk) - Financial expenses for the current period were **3.68 million Yuan**, a significant decrease of **85.19%** compared to the previous period, mainly due to realizing exchange gains of **16.32 million Yuan** in the current period, an increase of **25.65 million Yuan** in gains compared to exchange losses in the same period last year[71](index=71&type=chunk)[374](index=374&type=chunk) [R&D Expenses](index=138&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) During the reporting period, the company's total R&D expenses amounted to **58.10 million Yuan**, all of which were expensed, primarily including material input, employee compensation, depreciation and amortization, and share-based payments - Total R&D expenses for the current period were **58.10 million Yuan**, a slight decrease compared to **59.59 million Yuan** in the same period last year[410](index=410&type=chunk) - All R&D expenses were expensed, with no capitalized R&D expenditures[410](index=410&type=chunk) - R&D expenses mainly include material input (**32.85 million Yuan**) and employee compensation (**21.71 million Yuan**)[410](index=410&type=chunk) [Changes in Consolidation Scope](index=139&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) During the reporting period, the company had no non-same-control business combinations, same-control business combinations, reverse acquisitions, or disposals of subsidiaries leading to loss of control - There were no non-same-control business combinations in the current period[411](index=411&type=chunk) - There were no same-control business combinations in the current period[411](index=411&type=chunk) - There were no reverse acquisitions in the current period[412](index=412&type=chunk) - There were no transactions or events leading to loss of control over subsidiaries in the current period[412](index=412&type=chunk) [Interests in Other Entities](index=140&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) This section details the composition of the company's enterprise group, including **16** subsidiaries, and discloses the main financial information of the significant non-wholly-owned subsidiary Xinao Cashmere. Additionally, it explains the change in the company's ownership interest in a subsidiary while retaining control, specifically the capital increase and introduction of investors in UK Duncan, which reduced the company's shareholding from **100%** to **60%** [Composition of the Enterprise Group](index=140&type=section&id=%281%29.%E4%BC%81%E4%B8%9A%E9%9B%86%E5%9B%A2%E7%9A%84%E6%9E%84%E6%88%90) The company's enterprise group consists of **16** subsidiaries, covering manufacturing, trade, technology promotion, and application services, located in China, Australia, Hong Kong, Italy, the United Kingdom, and Vietnam - The company's enterprise group consists of **16** subsidiaries[414](index=414&type=chunk) - Subsidiary business natures cover manufacturing, trade, technology promotion, and application services[414](index=414&type=chunk) - Subsidiaries are located in China (Tongxiang City, Lingwu City, Shanghai), Australia, Hong Kong, Italy, the United Kingdom, and Vietnam[414](index=414&type=chunk) [Significant Non-Wholly-Owned Subsidiaries](index=142&type=section&id=%282%29.%E9%87%8D%E8%A6%81%E7%9A%84%E9%9D%9E%E5%85%A8%E8%B5%84%E5%AD%90%E5%85%AC%E5%8F%B8) This section discloses the minority shareholder's equity interest, current period profit attributable to minority shareholders, and period-end minority interest balance for the significant non-wholly-owned subsidiary Xinao Cashmere, and lists its period-end assets, liabilities, and current period operating performance - The significant non-wholly-owned subsidiary is Xinao Cashmere, with a minority shareholder's equity interest of **30%**[416](index=416&type=chunk) - The current period profit attributable to minority shareholders of Xinao Cashmere was **12.98 million Yuan**, and the period-end minority interest balance was **127.89 million Yuan**[416](index=416&type=chunk) - Xinao Cashmere's current period operating revenue was **617.54 million Yuan**, and net profit was **43.28 million Yuan**[418](index=418&type=chunk) [Explanation of Changes in Ownership Interest in Subsidiaries](index=144&type=section&id=%282%29.%E5%9C%A8%E5%AD%90%E5%85%AC%E5%8F%B8%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E4%BB%BD%E9%A2%9D%E7%9A%84%E5%8F%98%E5%8C%96%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The company increased capital in UK Duncan and introduced BARRIE KNITWEAR LIMITED as a new shareholder, resulting in the company's shareholding decreasing from **100%** to **60%**, but UK Duncan remains a controlled subsidiary of the company - The company increased capital in UK Duncan by **9.56 million GBP** and introduced BARRIE KNITWEAR LIMITED as a new shareholder, subscribing **18.80 million GBP**[419](index=419&type=chunk) - The company's shareholding in UK Duncan changed from **100%** to **60%**, with BARRIE KNITWEAR LIMITED acquiring **40%** equity[420](index=420&type=chunk) - UK Duncan remains a controlled subsidiary of the company and is included in the company's consolidated financial statements[420](index=420&type=chunk) [Impact of Transactions on Minority Interests and Equity Attributable to Parent Company Owners](index=144&type=section&id=%282%29.%E4%BA%A4%E6%98%93%E5%AF%B9%E4%BA%8E%E5%B0%91%E6%95%B0%E8%82%A1%E4%B8%9C%E6%9D%83%E7%9B%8A%E5%8F%8A%E5%BD%92%E5%B1%9E%E4%BA%8E%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E7%9A%84%E5%BD%B1%E5%93%8D) The introduction of external investors by UK Duncan resulted in a purchase cost/disposal consideration of **182.11 million Yuan**, with the subsidiary's net asset share calculated based on equity proportion being **174.13 million Yuan**, and the difference of **7.98 million Yuan** adjusted to capital reserve - The purchase cost/disposal consideration for UK Duncan's introduction of external investors was **182.11 million Yuan**[421](index=421&type=chunk) - The subsidiary's net asset share calculated based on the acquired/disposed equity proportion was **174.13 million Yuan**[421](index=421&type=chunk) - The difference of **7.98 million Yuan** was adjusted to capital reserve[421](index=421&type=chunk) [Government Grants](index=145&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) This section discloses the beginning and end balances and current period changes of government grant-related liabilities (deferred income) during the reporting period, as well as the amount of government grants recognized in current profit or loss - The beginning balance of government grants in deferred income was **21.39 million Yuan**, with **2.44 million Yuan** added in the current period, **1.90 million Yuan** transferred to other income in the current period, and an ending balance of **21.94 million Yuan**, all related to assets[423](index=423&type=chunk) - Total government grants recognized in current profit or loss for the current period amounted to **8.16 million Yuan**, of which **1.90 million Yuan** was asset-related and **6.27 million Yuan** was income-related[425](index=425&type=chunk) [Risks Related to Financial Instruments](index=146&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) This section describes the financial instrument risks faced by the company, primarily including credit risk, liquidity risk, and market risk (interest rate risk and foreign exchange risk), and explains the company's strategies and practices for managing these risks [Risks of Financial Instruments](index=146&type=section&id=1%E3%80%81%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9A%84%E9%A3%8E%E9%99%A9) The company minimizes the negative impact of risks on operating performance by balancing risk and return. Major risks include credit risk (from monetary funds and receivables), liquidity risk (managed through various financing methods and bank credit lines), and market risk (interest rate risk and foreign exchange risk) - The financial instrument risks faced by the company primarily include credit risk, liquidity risk, and market risk (interest rate risk and foreign exchange risk)[426](index=426&type=chunk) - Credit risk mainly arises from monetary funds and receivables, which the company controls by depositing funds with financial institutions with high credit ratings and continuously assessing customer credit[428](index=428&type=chunk) - Liquidity risk is managed by comprehensively utilizing various financing methods such as bill settlement and bank borrowings, and adopting a combination of long-term and short-term financing[429](index=429&type=chunk) - Interest rate risk is mainly related to the company's bank borrowings with floating interest rates; as of June 30, 2025, floating rate bank borrowings amounted to **818.38 million Yuan**[432](index=432&type=chunk) - Foreign exchange risk is mainly related to the company's foreign currency monetary assets and liabilities; the company will buy and sell foreign currencies at market exchange rates when necessary to maintain net risk exposure[432](index=432&type=chunk) [Transfer of Financial Assets](index=149&type=section&id=3%E3%80%81%E9%87%91%E8%9E%8D%E8%B5%84%E4%BA%A7%E8%BD%AC%E7%A7%BB) During the reporting period, the company transferred financial assets through bill discounting and bill endorsement, with a total derecognition amount of **231.01 million Yuan**, and recognized related gains or losses - The company transferred financial assets, specifically accounts receivable financing, through bill discounting and bill endorsement[435](index=435&type=chunk) - The total amount of financial assets derecognized due to transfer was **231.01 million Yuan**[435](index=435&type=chunk)[437](index=437&type=chunk) - The gain or loss related to derecognition was **18,030.42 Yuan**[437](index=437&type=chunk) [Disclosure of Fair Value](index=150&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) This section discloses the fair value measured assets and liabilities at the end of the period, where accounts receivable financing is a Level 3 fair value measurement item, and explains the fair value of financial assets and liabilities not measured at fair value - The total fair value measured assets at period-end were **38.70 million Yuan**, all of which were accounts receivable financing, classified as Level 3 fair value measurements[440](index=4

浙江新澳纺织股份有限公司 信息披露管理制度 第一章 总则 第一条 为加强对浙江新澳纺织股份有限公司（以下简称公司）信息披露工 作的管理，规范公司信息披露行为，维护公司全体股东的合法权益，依据《中华 人民共和国公司法》、《中华人民共和国证券法》（以下简称"《证券法》"）、 《上海证券交易所股票上市规则》（以下简称"《上市规则》"）、《上市公司 信息披露管理办法》（以下简称"《信披办法》）"）等有关法律、法规、规范 性文件及《公司章程》的有关规定，特制定本制度。 第二条 本制度所称信息披露义务人，是指公司及其董事、高级管理人员、 股东、实际控制人、收购人，重大资产重组、再融资、重大交易有关各方等自然 人、单位及其相关人员，破产管理人及其成员，以及法律、行政法规和中国证监 会规定的其他承担信息披露义务的主体。 信息披露义务人自愿披露的信息应当真实、准确、完整。自愿性信息披露应 当遵守公平原则，保持信息披露的持续性和一致性，不得进行选择性披露。 信息披露义务人不得利用自愿披露的信息不当影响公司证券及其衍生品种 交易价格，不得利用自愿性信息披露从事市场操纵等违法违规行为。 第六条 公司及其实际控制人、股东、关联方、董事 ...

浙江新澳纺织股份有限公司 信息披露暂缓与豁免业务管理制度 第一条 为规范浙江新澳纺织股份有限公司（以下简称"公司"）信息披露 暂缓、豁免行为，确保公司和其他信息披露义务人依法合规地履行信息披露义务， 保护投资者合法权益，根据《中华人民共和国证券法》、《上海证券交易所股票 上市规则》（以下简称"《上市规则》"）、《上市公司信息披露管理办法》、 《上市公司信息披露暂缓与豁免管理规定》（以下简称"《管理规定》"）、《浙 江新澳纺织股份有限公司章程》（以下简称"《公司章程》"）等规定，并结合 公司实际情况，制定本制度。 第二条 公司和其他信息披露义务人按照《上市规则》及其他相关法律、法 规、规范性文件的规定，办理信息披露暂缓、豁免业务的，适用本制度。 第三条 公司和其他信息披露义务人应当真实、准确、完整、及时、公平地 披露信息，不得滥用暂缓或者豁免披露规避信息披露义务、误导投资者，不得实 施内幕交易、操纵市场等违法行为。 第四条 公司和其他信息披露义务人应当审慎确定信息披露暂缓、豁免事项， 履行内部审核程序后实施。暂缓、豁免事项的范围原则上应当与公司股票首次在 上海证券交易所（以下简称"上交所"）上市时保持一致，在上 ...

Market Performance - The textile manufacturing sector increased by 0.64% on August 22, with Nanshan Zhishang leading the gains [1] - The Shanghai Composite Index closed at 3825.76, up 1.45%, while the Shenzhen Component Index closed at 12166.06, up 2.07% [1] Stock Performance - Nanshan Zhishang (300918) closed at 22.40, with a rise of 10.02% and a trading volume of 580,200 shares, amounting to a transaction value of 1.273 billion [1] - Other notable performers included Xingye Technology (002674) with a 6.16% increase, closing at 14.64, and Junjie Microfiber (300819) with a 1.49% increase, closing at 26.52 [1] Capital Flow - The textile manufacturing sector experienced a net outflow of 12.02 million from institutional investors and 42.26 million from speculative funds, while retail investors saw a net inflow of 54.28 million [2] - Nanshan Zhishang had a net inflow of 85.95 million from institutional investors, while speculative funds saw a net outflow of 80.12 million [3] Individual Stock Analysis - Huamao Co. (000850) had a significant net inflow of 28.42 million from institutional investors, indicating strong interest [3] - The overall capital flow in the textile sector shows a mixed sentiment, with institutional and speculative funds withdrawing while retail investors are actively buying [2][3]

Market Overview - The Shanghai Composite Index closed at 3771.10 points, above the annual line, with a change of 0.13% [1] - The total trading volume of A-shares reached 24603.35 billion yuan [1] Stocks Breaking Annual Line - A total of 28 A-shares have surpassed the annual line today, with notable stocks including: - Meihua Medical (301363) with a deviation rate of 14.81% and a daily increase of 18.00% [1] - Meirui New Materials (300848) with a deviation rate of 4.67% and a daily increase of 5.49% [1] - Kangle Health (833575) with a deviation rate of 4.29% and a daily increase of 4.40% [1] Stocks with Smaller Deviation Rates - Stocks that have just crossed the annual line with smaller deviation rates include: - Guotou Power (600886) with a deviation rate of 0.01% and a daily increase of 1.30% [2] - Shanghai Pharmaceuticals (601607) with a deviation rate of 0.08% and a daily increase of 0.95% [2] - *ST Jinglun (600355) with a deviation rate of 0.20% and a daily increase of 0.86% [2]

Core Insights - The report highlights the significant growth in net profits for several companies, with Jinli Permanent Magnet (金力永磁) reporting a 154.81% year-on-year increase in net profit for the first half of 2025, proposing a dividend of 0.18 yuan per share [9] - Fuyao Glass (福耀玻璃) also showed strong performance, with a net profit of 4.804 billion yuan for the first half of 2025, reflecting a 37.34% year-on-year growth and proposing a dividend of 0.9 yuan per share [9] - The report notes the rising prices in the photovoltaic film sector due to increased costs and improved supply-demand dynamics, indicating potential investment opportunities in related stocks such as Saiwu Technology (赛伍技术) and Jusaylong (聚赛龙) [7] Industry Dynamics - The report mentions that the China Securities Regulatory Commission is gradually expanding the range of futures and options products available for qualified foreign investors [5] - The Henan Provincial Financial Office states that the Zhengzhou Commodity Exchange is becoming a significant global center for futures trading, pricing, and risk management [5] - The report indicates a technological breakthrough in the mass production of monocrystalline chips, with related companies like Hite High-tech (海特高新) and Kaide Quartz (凯德石英) being highlighted [7] - The satellite internet sector in China is accelerating its network deployment, with companies such as Tongyu Communication (通宇通讯) and Tianyin Machinery (天银机电) being mentioned as key players [7] Market Overview - On August 20, the market experienced a rebound, with the Shanghai Composite Index, Shenzhen Component Index, and Sci-Tech Innovation 50 Index all reaching new highs for the year [11] - The total trading volume in the Shanghai and Shenzhen markets was 2.41 trillion yuan, a decrease of 180.1 billion yuan from the previous trading day, marking the sixth consecutive day of trading volume exceeding 2 trillion yuan [11] - The report notes a mixed performance among sectors, with chip stocks experiencing a surge, while high-priced stocks faced significant declines [11] - The outlook suggests a strong market momentum, with a focus on maintaining a watchful eye on the 5-day moving average for potential market movements [11]

Summary of Key Points Core Viewpoint - The report highlights the significant role of CFOs in A-share listed companies, emphasizing their influence on financial health, strategic decision-making, and overall company performance. The total compensation for CFOs in A-shares reached 4.243 billion yuan, with an average salary of 760,300 yuan [1]. Group 1: CFO Compensation - The highest annual salary for a CFO in the A-share market is 2.3533 million yuan, while the lowest is 81,600 yuan, with the industry average exceeding 500,000 yuan [1]. - A total of 15 listed companies have CFOs earning over 1 million yuan, including companies like Taiping Bird, Baoxini Bird, and Dizuo Fashion, with salaries of 2.3533 million yuan, 1.5866 million yuan, and 1.5221 million yuan respectively [1]. Group 2: CFO Demographics - The majority of CFOs in the industry hold a bachelor's degree, but among the 15 CFOs earning over 1 million yuan, most have a master's degree. Only 5 have a diploma or bachelor's degree [4]. - The average age of CFOs is over 40, with the youngest being Lin Guixian from ST Jinbi, born in 1991, making him 34 years old. The youngest among the high-earning CFOs is Hu Xinyan from Huali Group, born in 1989, at 36 years old [4]. Group 3: Company Performance - Among the companies paying over 1 million yuan in CFO salaries, only 5 experienced a decline in revenue, with year-on-year decreases of 21.18% for Shengtai Group, 3.29% for Jinhong Group, 16.23% for Dizuo Fashion, 1.91% for Baoxini Bird, and 12.7% for Taiping Bird [4].

Investment Rating - The investment rating for the textile and apparel industry is "Outperform the Market" (maintained) [1] Core Insights - The update on Trump's tariff policy indicates a trade agreement with Vietnam, imposing a 20% tariff on Vietnamese exports, significantly lower than the previous 46% [2] - The determination of "transshipment" by U.S. Customs focuses on the country of origin, with the final decision resting with U.S. Customs [2] - The textile industry in Southeast Asia shows high dependency on fabric imports, with Vietnam's self-sufficiency in textile and footwear materials reported at approximately 40-45% [2][47] Summary by Sections 1. Trump Tariff Policy Update - On July 2, Trump announced a trade agreement with Vietnam, reducing tariffs on Vietnamese exports to 20% from 46% [2][10] - A 40% punitive tariff will be applied to goods transshipped through Vietnam to third countries [2][11] 2. "Transshipment" Determination Rules - U.S. Customs uses the "substantial transformation" principle to determine the country of origin for goods not entirely produced in one country [2][15] - The determination process involves a five-step assessment based on product characteristics and processing operations [2][21] 3. Textile Industry Capacity Distribution and Tariff Risk Exposure - Southeast Asian countries have high fabric import dependency, with Vietnam's dependency exceeding 70% [47] - Companies with less than 20% revenue exposure to the U.S. include Shenzhou International and Jian Sheng Group, while those with significant production in Southeast Asia have over 40% revenue exposure to the U.S. [2] - Companies with double-digit net profit margins include Shenzhou International (20.9%), Rihong (18.0%), and Huayi Group (16.0%) [2] 4. Investment Recommendations - Key recommendations include Shenzhou International, which has low U.S. revenue exposure and high net profit margins, and Huayi Group, which has a strong market position and high capacity in Vietnam [6]

Group 1 - The board of directors of Zhejiang Xin'ao Textile Co., Ltd. held its 21st meeting of the 6th session on July 8, 2025, with all 9 directors present, confirming the legality and validity of the meeting [1][2] - The board approved the election of members for the audit committee, appointing Tu Jianlun, Shen Jianhua, and Feng Zhenyuan, with Tu Jianlun serving as the chairperson [1][2] - The board also elected Shen Jianhua as the representative director to execute company affairs, confirming his role as the legal representative [2] Group 2 - Tu Jianlun, born in 1964, is a senior accountant and has held various leadership roles in accounting firms and consulting services, currently serving as an independent director for the company [3] - Shen Jianhua, born in 1964, is the current chairman of the company and has extensive experience in various business roles [2][3] - Feng Zhenyuan, born in 1965, is a master’s degree holder and a senior lawyer, currently serving as an independent director for the company and involved in multiple legal associations [2][3]