Core Insights - The article discusses the transformation of supply chain management in the consumer sector through digitalization and traceability systems [2][3][5]. Group 1: Supply Chain Innovations - The "one product, one code" traceability system allows companies to track sales data from raw materials to end consumers, enhancing transparency in the green supply chain [2]. - McDonald's has introduced a "one box, one code" initiative, enabling individual tracking of each box of goods, which improves regulatory efficiency and allows for performance comparisons across factories [3]. - Starbucks is collaborating with Envision Group to implement a digital supply chain management platform that will cover 100% of its direct and significant indirect suppliers, aiming to quantify and reduce carbon footprints [5]. Group 2: Digital Transformation Efforts - Yum China is launching a new supply chain model in Jinan, integrating short-shelf-life food production and smart logistics to enhance operational efficiency [6]. - The digitalization efforts across these companies are aimed at improving collaboration and efficiency within the supply chain, with a focus on sustainability and responsiveness to consumer demand [4][6]. - Companies are committed to ongoing investments in digital infrastructure, including AI and automation, to further enhance operational efficiency [6].

Core Viewpoint - The third China International Supply Chain Promotion Expo highlighted the importance of cotton in promoting ecological restoration and sustainable practices, with a focus on the contributions of Shenzhen-based company, Weijian Medical, and its subsidiary, All Cotton Era [1][3]. Group 1: Company Initiatives - Weijian Medical has procured approximately 1 million tons of cotton since its establishment, involving 1,500 acres of planting bases across 10 locations [3]. - All Cotton Era has sold over 78.67 billion cotton soft towels, which could wrap around the Earth 393.4 times, significantly reducing deforestation and protecting the ecosystem [3]. - The company promotes a "company + cooperative + farmer" model in Hubei, engaging 12 planting entities in a cotton order production project for 2024, thereby boosting employment for cotton farmers and supporting rural revitalization [3]. Group 2: Technological Advancements - Weijian Medical introduced innovative all-cotton water-jet non-woven fabric technology, enhancing the application of cotton materials in both medical and daily life sectors, with production efficiency increasing several times compared to traditional textile processes [5]. - The "green operating room" solution was presented, which utilizes upgraded cotton materials to create health barriers for medical staff throughout the surgical process [5]. Group 3: Sustainability and Collaboration - The "Green Win-Win Chain Initiative" was launched in collaboration with various organizations, calling for upstream and downstream partners to build a sustainable health cooperation ecosystem, enhancing the "green content" of the supply chain to improve the "gold content" of enterprise development [7]. - Weijian Medical and All Cotton Era showcased new medical beauty care products and a full range of cotton technology products at the expo, promoting a "cotton lifestyle" to lead health consumption trends [7][8].

Core Viewpoint - The third China International Supply Chain Promotion Expo emphasizes the importance of sustainable cooperation in the supply chain, with a focus on green development and innovation in the cotton industry [1] Group 1: Green Initiatives - The "Green Win Chain Initiative" was launched to encourage upstream and downstream partners to build a sustainable ecosystem for health, enhancing the "green content" of the supply chain to improve the "gold content" of enterprise development [1] - The initiative aims to promote the industry's shift towards green, technological, and sustainable practices [1] Group 2: Company Innovations - Well-known for its brand All Cotton Era, the company showcased its innovative and green practices across the entire cotton industry chain at the expo, under the theme "Global Good Cotton, One Cotton One World" [1] - The company introduced a "Green Operating Room" solution, which includes disposable surgical packs made from cotton, aiming to reduce infection risks and promote green operations in hospitals [1] Group 3: Technological Advancements - The company continues to innovate with core materials such as cotton non-woven fabric and cotton yarn, expanding the application scenarios of cotton [2] - The Cotton Tech initiative focuses on enhancing cotton's properties, including softness, breathability, warmth, cooling sensation, UV protection, and antibacterial features [2] Group 4: Collaborative Efforts - The partnership with China Cotton Group emphasizes a shared commitment to green development in the cotton industry, focusing on water conservation and soil protection in cotton planting [3] - Efforts include using energy-saving equipment and optimizing production processes to promote energy conservation and emission reduction [3] - A traceability system has been implemented to ensure transparency in the cotton's journey from field to final product [3]

Group 1 - The core message emphasizes the shift from plastic to cotton-based medical supplies, highlighting the environmental benefits of using cotton in surgical settings [1][7] - The "Global Production" interactive area at the exhibition showcased the transformation of cotton into high-quality medical products, reflecting the global strategy of companies like Steady Medical and All Cotton Era [3] - The collaboration between Steady Medical and All Cotton Era, along with industry partners, led to the launch of the "Green Win Chain Initiative," aimed at promoting sustainable practices in the supply chain [5] Group 2 - All Cotton Era has innovatively applied "Cotton Tech" to create a variety of products, including medical-grade gauze for civilian use, enhancing the versatility of cotton applications [5] - Steady Medical introduced a "Green Operating Room" solution to reduce plastic waste in surgical environments, demonstrating a commitment to eco-friendly practices [7] - The event attracted attention from international delegations and government leaders, showcasing the potential of the Chinese cotton industry as a leader in green development [7]

Group 1 - The third China International Supply Chain Promotion Expo (Chain Expo) opened in Beijing, showcasing 28 outstanding Shenzhen enterprises, including Steady Medical, UBTECH, and Dazhong Laser, highlighting Shenzhen's core position in the global supply chain [1][2] - The expo attracted 651 companies from 75 countries and regions, with over 65% being Fortune Global 500 and industry-leading firms, emphasizing the event's international significance [1] - Compared to previous editions, this year's Shenzhen exhibitors shifted from "comprehensive participation" to "precise focus," emphasizing hard technology and green transformation, with an increase in national-level specialized "little giant" enterprises [1] Group 2 - UBTECH showcased its commercial humanoid robot Walker C, which is the world's first full-size running humanoid robot, demonstrating over 500 performances [2] - Shenzhen is positioned as a key node in the global supply chain, leveraging its geographical advantages, policy support, and technological innovation to connect domestic and international markets [2] - Several Shenzhen companies, including Better Battery, Steady Medical, and BGI Group, will unveil their latest technological and product innovations during the expo, reflecting Shenzhen's role in global supply chain collaborative innovation [2]

Core Viewpoint - The third China International Supply Chain Promotion Expo showcases the innovative strength and green practices of the cotton industry, with a focus on global sourcing, production, and sales by companies like Steady Medical and Cotton Era [2][3]. Group 1: Event Overview - The expo opened on July 16, featuring Steady Medical and its brand Cotton Era, highlighting the theme "Global Good Cotton, One Cotton One World" [2]. - The event attracted significant attention with immersive experiences such as "Cotton Stories" and real-time connections to production facilities [2][3]. Group 2: Global Production and Market Expansion - The "Global Production" interactive area allowed attendees to witness the transformation of raw cotton into high-quality medical and cotton products [3]. - Steady Medical is expanding its global footprint by investing in production bases in North America and Southeast Asia, while Cotton Era is focusing on the Southeast Asian market and exploring entry into the Middle East and Europe [3]. Group 3: Green Initiatives and Collaborations - A joint initiative called the "Green Win Chain Initiative" was launched, promoting sustainable cooperation in the health sector and enhancing the "green content" of supply chains [3]. - Steady Medical introduced a "Green Operating Room" solution aimed at replacing synthetic materials with cotton, enhancing safety and efficiency in medical settings [4]. Group 4: Technological Innovations - Cotton Era is innovating with core materials like cotton non-woven fabric and gauze, significantly improving production efficiency and expanding applications in daily life [5][6]. - The company’s Cotton Tech continues to push boundaries in softness, breathability, and sustainability, promoting a "cotton lifestyle" as a new choice for comfort and health [6]. Group 5: Future Directions - Both companies aim to deepen their strategies of product leadership, operational excellence, and global vision, positioning Chinese cotton as a "green business card" on the international stage [6].

Investment Rating - The report maintains a "Buy" rating for key companies in the textile and apparel sector, including Shenzhou International, Anta Sports, and Bosideng, among others [8][30]. Core Views - The apparel manufacturing sector shows signs of recovery with June 2025 revenue reports indicating a mixed performance among companies, but overall steady growth year-to-date [1][11]. - Vietnam's apparel exports have seen rapid growth in 2025, while China's related product exports have remained stable [1][17]. - The report emphasizes the importance of focusing on companies with strong fundamentals and brand strength, particularly in the outdoor and running segments, which are expected to expand [2][30]. Summary by Sections Recent Revenue Reports - In June 2025, revenue changes for key companies were as follows: Feng Tai Enterprises -3.1%, Yu Yuan Group +9.4%, and Ru Hong -3.3%. For the first half of 2025, cumulative revenues were -4.1%, +6.2%, and +10.8% respectively [1][11]. - The report suggests that the apparel manufacturing sector's output has normalized in Q2 2025, with a recommendation to monitor future order trends [1][30]. Industry Trends - The report highlights that the apparel manufacturing sector is benefiting from tariff policy changes, which may enhance company valuations in the short term [3][30]. - The report notes that the international trade environment and tariff changes could impact the competitive landscape of the industry [11][25]. Key Company Recommendations - Shenzhou International is recommended for its high valuation attractiveness, with a projected PE of 12 times for 2025 [30]. - Huayi Group is noted for its expanding overseas capacity and is expected to see revenue growth of 10% to 15% in Q2 2025, despite potential pressure on profit margins [30]. - Weixing Co. is expected to face challenges with a projected revenue decline of 10% to 15% in Q2 2025 due to cautious order placements from brand clients [30][31]. Market Performance - The textile and apparel sector has outperformed the broader market, with a notable increase in exports from Vietnam and stable performance from Chinese exports [1][4]. - The report indicates that the demand for functional apparel and jewelry brands remains strong, with a focus on companies that can leverage product differentiation and brand strength [2][3].

Investment Rating - The report gives an "Overweight" rating for the textile and apparel industry, indicating a positive outlook compared to the overall market performance [2][10]. Core Insights - Domestic demand is showing a mild recovery, which is expected to accelerate, while external demand is impacted by tariff shocks, leading to a divergence in industry performance [2]. - The sportswear segment is experiencing strong demand, particularly in high-performance outdoor products, with significant market growth potential [2]. - The report highlights the resilience of certain brands in the men's and women's apparel sectors, while children's clothing brands are still under pressure [2]. - The home textile sector is benefiting from government subsidies, leading to better performance for key players [2]. - The personal care and household cleaning segment is in a growth phase, driven by diversification and quality upgrades [2]. - The textile manufacturing sector faces challenges from tariff impacts but maintains global competitiveness among leading manufacturers [2]. Summary by Sections Domestic Demand - Retail sales of clothing, shoes, and textiles reached 613.8 billion yuan from January to May, with a year-on-year growth of 3.3% [2]. - The report anticipates an acceleration in retail growth due to low base effects from the previous year [2]. External Demand - Textile and apparel exports totaled 116.7 billion USD from January to May, with a year-on-year increase of 1% [2]. - Vietnam's textile exports grew by 12%, indicating a shift in supply chains due to tariff policies [2]. Sportswear Segment - The sportswear sector is leading in market performance, with brands like Anta and FILA expected to see significant revenue growth [2]. - The report predicts a 40% increase in revenue for outdoor brands in Q2 2025 [3]. Apparel Sector - Men's apparel brands like HLA are expected to show modest growth, while high-end brands may face profit declines [2]. - Women's apparel brand Geli Si is projected to outperform peers, with a significant rebound in profits [2]. Home Textiles - Key players like Luolai and Mercury are expected to see revenue growth of 3% and 15%, respectively, in Q2 2025 [3]. - The report notes that Fuanna is still undergoing operational adjustments, with expected declines in revenue and profit [2]. Personal Care and Household Cleaning - Companies like Nobon and Weijian are projected to achieve revenue growth of 28% and 20%, respectively, in Q2 2025 [2]. Textile Manufacturing - Major manufacturers like Shenzhou International are expected to see revenue growth of 15% in H1 2025, despite short-term profit pressures [2]. - The report highlights that upstream textile companies are facing order declines due to tariff impacts [2]. Investment Recommendations - The report recommends focusing on sectors with recovery potential, such as sportswear, discount retail, personal care, and home textiles [2]. - Specific stock recommendations include Anta Sports, HLA, and Luolai [2][5].

Group 1 - The report anticipates a steady recovery in demand for apparel and jewelry in H2 2025, with retail sales of clothing and textiles expected to grow by 3.3% and jewelry by 12.3% year-on-year from January to May 2025 [1][35] - The report highlights new trends in consumer demand, including diversification in product offerings, with strong growth in functional categories like outdoor and running apparel, and a rising interest in unique gold jewelry products due to high gold prices [1][35] - The investment focus is on selecting high-performing companies in the apparel sector, particularly those with strong fundamentals and growth potential [1][2] Group 2 - The report recommends leading companies in the functional apparel sector, such as Anta Sports, which is expected to maintain a healthy sales growth trend, with a projected PE ratio of 18 times for 2025 [2][6] - It also suggests focusing on premium jewelry brands like Chow Tai Fook and Chow Hong Ki, which are expected to benefit from rising gold prices, with Chow Tai Fook's operating profit projected to grow by 10% year-on-year for FY2025 [2][6] - The report notes that the apparel manufacturing landscape is improving, with leading companies like Shenzhou International and Huayi Group expected to benefit from market share gains in the medium to long term, with projected PE ratios of 11 times and 15 times for 2025, respectively [3][6] Group 3 - The report indicates that the overall inventory levels in the apparel sector are healthy, with a manageable increase in stock levels, which is expected to support steady performance in company earnings as consumer demand improves [39][45] - It highlights the strong growth in outdoor and running categories, with significant participation from younger demographics, and notes that brands like Descente and Kolon Sport are experiencing rapid growth due to their effective multi-brand strategies [46][47] - The report emphasizes the importance of channel efficiency and the integration of online and offline retail experiences, which are crucial for driving sales growth in the apparel sector [1][35]

Investment Rating - The report maintains a "Buy" rating for key companies in the textile and apparel sector, including Anta Sports, Bosideng, and Xtep International, among others [10]. Core Insights - The overall performance of the sportswear sector is stable, with a forecasted slowdown in revenue growth for Q2 2025 compared to Q1 2025 due to fluctuations in the consumer environment [1][4]. - The report emphasizes the importance of focusing on companies with strong fundamentals and quality, anticipating performance recovery and valuation increases in 2025 [4]. - The jewelry sector is experiencing significant disparities in performance among companies, influenced by high gold prices and varying consumer demand for gold jewelry [3][29]. Summary by Sections Sportswear Sector - The sportswear companies are expected to maintain a healthy inventory turnover ratio of around 5 as of the end of Q2 2025, despite a forecasted revenue growth slowdown [1][15]. - Anta Sports is projected to achieve over 10% revenue growth in H1 2025, while Li Ning's revenue is expected to remain flat with a 20% decline in net profit [1][18]. - Xtep International is anticipated to see a 5% revenue growth and a 10% increase in net profit for H1 2025 [1][19]. - 361 Degrees is expected to achieve a revenue growth of 10% to 15% and a similar increase in net profit for H1 2025 [1][19]. A-Share Brand Apparel - The A-share brand apparel sector is experiencing stable terminal retail performance, but individual company performance is diverging [2][20]. - Companies like Hailan Home are expected to see a revenue growth of 0% to 5% in Q2 2025, while Steady Medical is projected to grow by 15% to 25% [2][24]. - The report indicates that companies with healthy terminal performance and effective cost management may see year-on-year growth, while those struggling with revenue scale may face pressure [2][20]. Jewelry Sector - The jewelry sector is benefiting from rising gold prices, with retail sales of gold and silver jewelry expected to grow by 12.3% year-on-year in 2025 [3][29]. - Companies like Chow Tai Fook and Chao Hong Ji are highlighted for their strong product differentiation and market competitiveness, with Chow Tai Fook expected to see a 10% increase in operating profit year-on-year [7][29]. - However, companies like Lao Feng Xiang and Zhou Da Sheng are projected to experience revenue declines of 20% to 10% and 15% to 5%, respectively, due to fluctuating consumer demand [3][29]. Apparel Manufacturing - The apparel manufacturing sector is expected to see stable output in finished garments, while upstream textile manufacturing orders are affected by pessimistic expectations [3][6]. - Shenzhou International is projected to achieve a revenue growth of 10% to 15% in H1 2025, while Wei Xing Co. is expected to see a decline in both revenue and net profit by 10% to 15% [3][6]. - The report suggests that leading companies with integrated and international supply chains are likely to outperform the industry in the medium to long term [3][6].