Summary of China Jushi Conference Call Company Overview - **Company**: China Jushi (600176.SS) - **Industry**: Glass Fiber Manufacturing - **Current Price Target**: Raised from Rmb19.20 to Rmb33.00, reflecting a positive outlook driven by AI-related demand [1][5] Key Points Industry Dynamics - **AI-Driven Demand**: There is a significant increase in demand for high-end glass fiber and fabric due to AI applications, leading to a tightening supply for standard products [2][24] - **Price Increases**: Prices for standard glass fiber products have risen by 29% year-to-date, from Rmb4.4/meter to Rmb5.7/meter, with expectations for continued support in pricing over the next 1-2 years [2][10] Company Developments - **Capacity Expansion**: - The Huai'an plant commenced production in March 2026 with a capacity of 100kt electronic yarn, with an additional 200kt expected to start mid-2026 [3] - The Tongxiang plant is set to restart 182kt of capacity around June/July 2026 [3] - A new 200kt facility in Chengdu began construction at the end of 2025 [3] - **Production Capacity**: Jushi has over 100 million meters of electronic fabric production capacity annually [3] Financial Performance - **Earnings Estimates**: - Revised earnings estimates for FY26 show a net income increase to Rmb4.785 billion, reflecting a 6% increase from previous estimates [11] - Revenue projections for FY26 are set at Rmb23.170 billion, an 11% increase from prior estimates [14] - **Valuation Metrics**: Jushi is currently trading at approximately 16.5x one-year forward PE, compared to a historical average of 11.4x, indicating potential for a valuation re-rating [15][24] Strategic Initiatives - **Entry into Low DK Segment**: Jushi is certifying AI-related glass fiber products, including Low DK Generation 1 & 2, which may enhance its product offerings [4] - **Cost Management**: Rising costs of precious metals, a key input for glass fiber equipment, are expected to increase capital expenditures, potentially slowing industry-wide capacity expansion [3][11] Market Outlook - **Positive Demand Outlook**: The company anticipates improved domestic demand in 2026, which should drive better sales volume and stabilize glass fiber prices [27] - **Risk Factors**: Potential risks include weaker-than-expected demand and increasing supply, which could impact pricing and margins [13][33] Investment Thesis - **Overweight Rating**: The stock is rated as Overweight, with a price target of Rmb33, reflecting a favorable risk-reward scenario based on improved supply-demand dynamics and cost competitiveness [5][24][22] Additional Insights - **Market Capitalization**: As of March 23, 2026, Jushi's market cap is Rmb93.793 billion [7] - **EPS Growth**: Projected EPS growth from Rmb0.82 in FY25 to Rmb2.28 in FY28, indicating strong earnings potential [19] This summary encapsulates the key insights from the conference call regarding China Jushi's strategic positioning, financial outlook, and market dynamics within the glass fiber industry.

Summary of China Jushi (600176.SS) 2025 Results Presentation Company Overview - **Company**: China Jushi - **Industry**: Electronic Fabric and Glass Fiber Products Key Highlights 1. **E-fabric Supply Tightness**: - Standard electronic fabric and grade 7628 are in tight supply with management not expecting a quick easing due to limited new capacity and solid downstream demand from sectors like AI, EVs, and electronics upgrades [1][2][3] 2. **Pricing Strategy**: - Management plans to improve pricing in a disciplined manner, avoiding aggressive hikes while ensuring reasonable pricing acceptable to the supply chain [2] 3. **Structural Tightness in 7628**: - The tightness in 7628 is attributed to structural supply constraints rather than short-term restocking, indicating a longer-term issue in the supply chain [3] 4. **Demand Drivers**: - Continued strong demand from AI servers, intelligent devices, EVs, and energy storage is supporting the PCB and upstream electronic fabric markets [3] 5. **Slow Supply Response**: - Limited capacity additions, inefficiencies in high-end equipment, and immature domestic equipment substitution are contributing to a slow supply response in the market [4] 6. **Specialty Electronic Fabric Development**: - Progress is being made in four specialty product directions, with some products entering sample development and small-batch production, although commercialization timing remains uncertain [4] 7. **Roving Market Outlook**: - A positive outlook for 2026-27 is anticipated for roving, driven by constrained supply rather than a sharp demand rebound [5] 8. **High Platinum Prices**: - Elevated platinum prices are increasing the cost of new kiln investments, which is expected to slow industry capacity expansion over the next two years [5] 9. **Overseas Operations**: - Management is optimistic about overseas operations improving in 2026, particularly in wind energy, Southeast Asia, and India, while Europe remains a concern due to weaker demand and external pressures [9] Financial Metrics - **Current Share Price**: Rmb22.650 - **Target Price**: Rmb26.100 - **Expected Share Price Return**: 15.2% - **Expected Dividend Yield**: 1.5% - **Expected Total Return**: 16.8% - **Market Capitalization**: Rmb90,671 million (approximately US$13,140 million) [7] Risks 1. **Downside Risks**: - Weaker-than-expected demand for glass fiber products, rising energy costs, and greater-than-expected capacity additions could negatively impact share prices [11] 2. **Upside Risks**: - Better-than-expected demand and supply-side discipline that protects margins could positively influence share prices [11] Conclusion - Overall, China Jushi's management maintains a constructive outlook, particularly regarding electronic fabric, while navigating challenges in supply constraints and pricing strategies. The company is positioned to benefit from ongoing demand in key sectors, although risks remain that could affect performance.

Summary of Conference Call for China Jushi Company Overview - **Company**: China Jushi - **Industry**: Glass Fiber Manufacturing Key Points Supply and Demand Dynamics - The supply of electronic fabrics is tight, particularly for the 7,628 fabric, due to a shift in production capacity for thin fabrics, leading to low inventory levels [2][3] - The delivery cycle for Toyota weaving machines exceeds 165 days, with expansion plans not expected to materialize until H2 2026 to 2027 [2][3] - High platinum prices are suppressing new capacity investments, with expectations of a slowdown in yarn capacity release from 2026 to 2027, extending the industry boom cycle [2][7] Product Development and Market Strategy - The company is developing four types of specialty electronic fabrics (Low DK, etc.) with a goal of small-scale production and customer validation by 2026 [2][4] - The company plans to communicate with strategic customers during the Shanghai Electronics Circuit Exhibition to determine pricing strategies, aiming for a balanced approach rather than significant price hikes [3][11] - The company is exploring a "second growth curve" in wind power operations, with expected profits of 600-700 million yuan from the second phase [2][9] Export and International Market Outlook - A rebound in export expectations for 2026 is anticipated, particularly in the wind power sector, despite a decline in 2025 due to preemptive inventory buildup and economic downturns in key markets [2][12] - The company expects significant growth in Southeast Asia and India, with some competitors closing factories in Europe, which may benefit China Jushi [12][13] Financial Performance and Investment Plans - The U.S. subsidiary is projected to turn profitable in 2025, benefiting from high tariffs that reduce competition from imports [2][13] - There are currently no plans for further investment in the U.S. due to geopolitical tensions and lower returns compared to other regions [13] Challenges and Risks - The high cost of platinum is a significant concern for new capacity investments, particularly for smaller enterprises that may struggle with profit margins [7] - The ongoing geopolitical conflicts, particularly in the Middle East, may impact resin prices and logistics, potentially reducing glass fiber consumption in the short term [5][6] Future Projections - The company anticipates that the demand for glass fiber will increase as resin prices rise, encouraging the use of glass fiber-reinforced materials [5] - The overall outlook for 2026 and 2027 suggests a cautious but optimistic view on demand, with strategic adjustments to production capacity based on market conditions [5][6] Special Focus on Specialty Fabrics - The company is prioritizing partnerships with domestic strategic customers in the specialty fabric sector, aiming to leverage existing relationships to accelerate project progress [14] - The development of specialty fabrics is progressing simultaneously, with no specific prioritization among the four types being developed [14] Pricing and Contract Negotiations - Long-term contract negotiations for 2026 have been completed earlier than in 2025, with favorable pricing secured for wind power and thermoplastic products [15] - The company is actively managing production levels to align with market demand, ensuring a balance between supply and pricing stability [6][15]

Summary of Conference Call for China Jushi (20260227) Industry Overview - The demand for special electronic fabrics has surged, with some production capacity shifting towards AI-related fields, leading to a temporary shortage of supply for the 7,628 series products and driving price increases [2][3] - The PCB industry has seen a rise in copper foil prices, which has improved the downstream acceptance of rising material costs, facilitating the price transmission of electronic fabrics [2][4] - The electronic fabric industry has experienced a downturn since the second half of 2021, with limited capacity expansion over the past two years, resulting in low inventory levels as of Q4 2025 [2][4] Company Insights - The company's electronic fabric business is primarily focused on the 7,628 series, accounting for over 85% of its production [2][5] - A new electronic yarn production line in Huai'an is set to commence operations in March 2026, with a designed capacity of 100,000 tons, aimed at increasing the proportion of thin and ultra-thin fabrics [2][6] - Special electronic fabrics are still in the R&D phase, with no substantial mass production yet, as they are currently undergoing sample testing and certification with downstream clients [2][7] Production and Capacity Plans - The 2026 construction focus includes the Huai'an base, which will feature a 100,000-ton electronic yarn line (to be released in two phases) and an additional 200,000 tons of coarse yarn capacity [2][8] - The company plans to launch a cold repair production line in Tongxiang around mid-2026 and a 200,000-ton line in Chengdu expected to be operational in 2027 [2][8] Pricing Dynamics - The price increase for electronic fabrics is driven by three main factors: adjustments in industry capacity structure, changes in demand structure, and rising copper foil prices in the PCB supply chain [3][4] - The current profit margin for standard electronic fabrics is approximately 1.7 to 1.8 yuan per meter, with thin and ultra-thin fabrics priced about 1 yuan higher than the 7,628 series [3][14] - The price of ordinary electronic fabrics is expected to maintain a favorable trend in the first half of 2026, with a need to monitor supply-demand dynamics post-March [3][16] Inventory and Supply Chain - The overall inventory level of electronic fabrics is currently low, with about half a month of inventory available [2][16] - The company is not expected to adopt a strategy of accumulating inventory to speculate on price increases, as its current inventory level is already substantial [2][28] Market Outlook - The demand for thin and ultra-thin fabrics is expected to grow, particularly in automotive electronics, while the overall market outlook for household appliances and automotive electronics is less optimistic compared to 2025 [3][16] - The company anticipates that the price of ordinary electronic fabrics will remain a highlight in 2026, with potential adjustments based on market conditions [3][16] Special Electronic Fabrics Development - The development of special electronic fabrics is progressing, with multiple product directions being explored, but mass production is not expected in the short term [2][7][11] - The company is currently focused on domestic clients for sample testing, while also engaging with some overseas clients [2][12] Conclusion - The company is strategically positioned to respond to the evolving market dynamics in the electronic fabric industry, with significant investments in capacity expansion and R&D for special electronic fabrics, while maintaining a cautious approach to pricing and inventory management [2][3][4][8]

Summary of China Jushi Conference Call Industry Overview - The fiberglass industry is currently in an upward phase from the bottom but has not yet reached the peak of the cycle. The price of 2,400 tex roving has shown some recovery but remains volatile. The net profit for China Jushi's roving is approximately 900 RMB/ton, slightly above the previous cycle's bottom but still far from historical highs [2][5]. - The expected increase in roving production in 2026 is about 500,000 to 600,000 tons, with a supply growth rate of approximately 5.8%, which is considered manageable. New production lines from China Jushi and Inner Mongolia Tianhao will contribute to this increase, but overall supply and demand are expected to remain balanced [2][5]. Company Insights - China Jushi is actively expanding into AI electronic fabric products, enhancing valuation flexibility and performance certainty. The company has potential for significant achievements in traditional fiberglass roving, electronic yarn, and AI electronic fabric [2][6]. - The competitive landscape of the fiberglass industry has changed, with the new management adopting a more moderate pricing attitude, which has helped drive price recovery. Although the net profit for China Jushi's roving remains low, the gradual price recovery is expected to solidify performance support for 2026 [2][7][8]. Production and Demand Forecast - The demand growth rate for fiberglass roving in 2026 is projected to be 4-5%, slightly lower than in 2025, but overall demand remains stable. The demand growth for electronic yarn is expected to exceed 6%, indicating a tighter supply-demand balance [4][10]. - The inventory levels for 7,628 electronic fabric are low, reflecting strong real demand. The price trend is expected to be upward in the first half of the year, with further observation needed in the second half as new production lines come online [10][11]. Financial Performance and Pricing Trends - In 2024, only leading companies like China Jushi, Taibo, and Changhai achieved profitability, while smaller firms generally faced losses. By the third quarter of 2025, leading companies continued to earn excess profits, while smaller firms were at breakeven or slightly losing [12]. - For 2026, China Jushi's roving sales are expected to reach 3.3 to 3.4 million tons, with a net profit of around 900 RMB/ton. Structural price increases in wind power and thermoplastics could push this to 1,000 RMB/ton, leading to total profits of approximately 3.3 to 3.4 billion RMB. The sales of 7,628 electronic fabric are projected at 1.1 billion meters, with net profit per meter increasing from 1.2 RMB to 1.5 RMB, contributing an additional 1.65 billion RMB in profits [12]. Competitive Advantages - China Jushi maintains significant cost advantages in raw material procurement, energy consumption, depreciation, and labor costs, allowing it to sustain and expand its profitability gap with peers. The company benefits from low raw material prices due to local resources and efficient processing capabilities [15][17]. - The company has a low financial cost due to a debt ratio of about 45%, which contributes to lower financing costs. Management and R&D expenses have shown variability due to profit-sharing schemes, but overall, management costs are competitive [16]. Future Outlook - Overall, China Jushi's future development prospects are strong due to its cost advantages and continuous technological advancements. The company is well-positioned to maintain a favorable alignment between its stock price and fundamentals, making it a recommended investment target in the current chemical midstream supply context [17].

Summary of Conference Call on China Jushi and the Electronic Fabric Industry Industry Overview - The electronic fabric market is experiencing a decline in demand for traditional 7,628 electronic fabrics due to the rise of AI technologies, which is similar to the impact seen in the DDR memory market driven by AI advancements [2][3] - A shortage of weaving machines is exacerbating structural issues in the electronic fabric sector, leading companies to prioritize production of higher-margin AI-related electronic fabrics over traditional 7,628 products [2][3] Key Points on China Jushi - Major manufacturers such as China Jushi, Jiantao, and China National Building Material Glass are actively expanding their low-end electric inventory and shifting focus towards the AI sector, which is expected to reduce the new supply from traditional mechanical chains [2][4] - China Jushi has a production capacity of 270,000 tons, while Jiantao and China National Building Material Glass have capacities of 205,000 tons and 140,000 tons, respectively [4] Pricing Dynamics - The current price for 7,628 electronic fabric is approximately 4.5 to 4.78 RMB per meter, while AI-related fabrics (first, second, and Q types) are priced significantly higher at 30 RMB, 100 RMB, and 250-280 RMB per meter, respectively [3][4] - The price of electronic fabrics has begun to increase, with expectations that the entire industry chain will enter a price increase phase around the Chinese New Year [2][5] Supply and Demand Analysis - On the supply side, companies like China National Building Material Glass and Guangyuan are expected to reduce production by 30%-40% due to their shift towards AI products [6][7] - Despite some negative data in consumer electronics and automotive sectors, the overall demand for 7,628 products is expected to maintain positive growth due to significant increments in the AI sector [7] Future Trends in the B Store Segment - The B Store segment shows a clear upward trend, with expected increases in marginal shipments of second-generation and Q fabrics from 2026 to 2027 [8] - The entire industry chain, including lithium batteries and ordinary PCBs, is anticipated to undergo price increases, driven by the AI market's impact [8]

Summary of China Jushi (600176.SS) Conference Call Company Overview - **Company Name**: China Jushi - **Industry**: Glass fiber production and sales - **Headquarters**: Zhejiang, China - **Production Bases**: Zhejiang, Jiangxi, Sichuan, with additional facilities in Egypt, the US, and India - **Global Position**: Leading player in the glass fiber industry with a production capacity of 1.7 million tons as of 2018 [14][15] Key Financial Insights - **Target Price**: Raised to Rmb26.1 per share, reflecting a 39% expected return from the current price of Rmb18.78 [3][16] - **Market Capitalization**: Rmb75.179 billion (approximately US$10.788 billion) [3] - **Earnings Forecasts**: - 2025E: Net profit of Rmb3.472 billion, EPS of Rmb0.868 - 2026E: Net profit of Rmb5.287 billion, EPS of Rmb1.321 - 2027E: Net profit of Rmb5.992 billion, EPS of Rmb1.498 [5][8] - **Earnings Revisions**: - 2025/26/27 earnings forecasts revised up by 9.7%/35.8%/31.1% due to higher volume and gross margin expectations [2][8] Price and Profitability Trends - **E-fabric Price Increase**: E-fabric prices increased by approximately Rmb0.2 per square meter, with E-glass yarn prices rising by Rmb100-200 per ton month-over-month [1][2] - **Profit Margins**: - E-fabric unit net profit expected to rise to Rmb1.3-1.4 at current average selling prices (ASPs) of Rmb4.5 including tax [1] - Gross margin projected to improve significantly, reaching 36.9% in 2026E and 38.7% in 2027E [7] Market Dynamics and Catalysts - **Supply Constraints**: The supply of E-fabric remains tight, suggesting potential for further price increases in Q1 [1][11] - **Management Guidance**: Anticipated updates on low-DK fabric business progress expected around the annual results presentation [1][11] - **Upside Catalyst**: A 90-day upside catalyst watch has been initiated, anticipating further price hikes and management announcements [10][11] Risks and Considerations - **Downside Risks**: - Weaker-than-expected demand for glass fiber products - Rising energy and power costs - Greater-than-expected capacity additions [17] - **Upside Risks**: - Better-than-expected demand - Supply-side discipline that could protect margins [17] Conclusion - **Investment Recommendation**: The company is rated as a "Buy" due to improved earnings visibility, expected price increases, and a favorable market position within the glass fiber industry [1][15]

Summary of China Jushi 2026 Business Outlook Call Company Overview - **Company**: China Jushi (600176.SS) - **Date of Call**: January 12, 2026 - **Participants**: Mr. Ding Chengche (Board Secretary), Ms. Xu Mengdan (IR Director) Key Industry Insights - **Cyclical Outlook**: Management anticipates 2024 as the cycle trough, 2025 as a recovery year, and 2026 as a favorable year with resilient demand and moderated supply growth [3][15] - **Supply-Demand Dynamics**: Expected supply growth of approximately 500,000 tons in 2026 compared to around 1 million tons in 2025. Demand growth in 2026 is estimated at around 6%, with potential upside to 8-9% [3][15] Financial Performance - **Fiberglass Profitability**: Profitability has stabilized at a higher level, with net profit per ton consistently exceeding RMB 800, currently around RMB 900-1000. Most peer producers are near breakeven [4][12] - **E-fabric Demand**: A broad-based recovery in E-fabric demand has been observed, with profitability exceeding RMB 1/sqm. Management expects to maintain this level in 2026 [5][13] Strategic Initiatives - **Capex Discipline**: Capital expenditures remain stable at RMB 3-5 billion, with maintenance capex capped at approximately RMB 1 billion [11] - **Low DK Fabrics**: Progress is being made in low DK products, with ongoing customer validation. Challenges remain in yield rates and process stability [8] Market Outlook - **Overseas Demand**: After a weak 2025 due to geopolitical factors, overseas demand is expected to recover in 2026, with exports guided at approximately 1.1 million tons and total shipments at around 3.3 million tons [9][10] - **US Plant Performance**: The US plant was loss-making in 2024 but significantly improved in 2025, with expected profitability in 2026 under current tariff conditions [10] Pricing Strategy - **Glassfiber Pricing**: Annual contract pricing is under negotiation, with moderate price increases expected. Jushi is avoiding aggressive price hikes to prevent triggering excess capacity [4][12] Risks and Opportunities - **Downside Risks**: Include weaker-than-expected demand for glass fiber products, rising energy costs, and greater-than-expected capacity additions [15] - **Upside Risks**: Include better-than-expected demand and supply-side discipline that could help protect margins [15] Valuation - **Target Price**: The target price for Jushi is set at RMB 19.8/share, based on a price-to-earnings ratio of 19.8x on 2026 estimated net income [14] Conclusion - The call reinforces a more constructive medium-term outlook for China Jushi, with a recommendation to maintain a "Buy" rating based on the anticipated recovery and growth in demand for fiberglass and E-fabric products [1][6]

Summary of China Jushi 3Q25 Post Result Call Company Overview - **Company**: China Jushi (Ticker: 600176.SS) - **Industry**: Greater China Materials - **Market Cap**: Rmb63,129.5 million - **Current Share Price**: Rmb15.77 (as of October 24, 2025) - **Price Target**: Rmb19.20 - **Stock Rating**: Overweight Key Takeaways Capacity and Production - Limited capacity increases are expected in 2026, including: - 200kt new capacity in Huai'an starting mid-2026 - 60kt incremental capacity from the upgrade of the Tongxiang line - 100kt new electronic fabric capacity in Huai'an commencing in 2026 - Construction of 200kt capacity in Chengdu expected to start late 2025 or early 2026 - Overall supply increase for 2026 will be limited due to maintenance on the 180kt line in Tongxiang and potential maintenance in Egypt [2][4] Product Development - High-end electronic fabric is projected to reach commercial production in 1Q26 - Generation one and two low-dielectric electronic fabric products are under innovation, with generation 1 products currently in the certification process [3] Financial Performance - Net profit per ton (NP/t) slightly decreased QoQ in 3Q25 to over Rmb800/t, attributed to lower earnings from Europe and the US - Roving sales volume increased by 10% YoY to 809.7kt, while electronic fabric sales volume surged 73% YoY and 24% QoQ to 294 million meters - The percentage of overseas sales volume decreased to approximately one-third, mainly due to softened demand from the EU [4][8] Market Demand - Demand for solar modules is increasing but at a slower pace, with expectations to surpass 3GW in 2026 compared to around 2GW in 2025 - The slow demand increase is attributed to intense competition with aluminum frame producers, as aluminum is recyclable [4] Pricing and Costs - Average selling prices (ASP) for roving and electronic fabric increased by 6% YoY and 5% YoY, but slightly dropped QoQ due to higher industry supply - Costs declined in 3Q25 due to technical upgrades rather than management expense cuts - Price increases are anticipated in 2026 to counteract potential higher costs, including labor and raw material prices [8] Risks and Considerations - **Upside Risks**: - Better-than-expected demand - Decreasing raw material prices - **Downside Risks**: - Global demand slowdown - Rising raw material prices - Industry overcapacity [11] Conclusion China Jushi is positioned for moderate growth with planned capacity expansions and product innovations. However, the company faces challenges from competitive pressures and fluctuating demand in key markets. The financial outlook remains cautiously optimistic, supported by strong sales volumes and strategic pricing adjustments.

Summary of China Jushi's 3Q25 Earnings Call Company Overview - **Company**: China Jushi (Ticker: 600176.SS) - **Industry**: Greater China Materials - **Market Cap**: Rmb63,450 million - **Stock Rating**: Overweight - **Price Target**: Rmb19.10, representing a 21% upside from the current price of Rmb15.85 as of October 21, 2025 Key Financial Highlights - **Net Profit**: Increased by 68% YoY to Rmb2.6 billion for the first nine months of 2025 - **3Q25 Earnings**: Reported at Rmb881 million, a 54% increase YoY but down 8% QoQ, exceeding the estimate of Rmb803 million - **Recurring Net Earnings**: Up 73% YoY to Rmb911 million in 3Q25, excluding one-off items - **Sales Volume Growth**: Total sales volume for roving and electronic fabric increased by 10% YoY and 73% YoY to 810kt and 294 million meters, respectively [1][7] - **Gross Margin**: Narrowed to 33% in 3Q25 due to a slight drop in average selling price (ASP) [1] - **Net Gearing**: Increased to 37% in 3Q25 from 29% at the end of June [1] - **Finance Costs**: Rose by 10% YoY in 3Q25 [1] Future Outlook - **4Q25 Expectations**: Anticipated strong sales due to the traditional peak consumption season for glass fiber in the second half of 2025 - **Price Increases**: Electronic fabric prices have risen post-National holiday due to tight supply - **Product Development**: The company is advancing high-end D/E series electronic fabric production, which is expected to optimize the product portfolio [2] Quarterly Earnings Summary (3Q25) | Metric | 3Q25 (Rmb million) | YoY Change | QoQ Change | |-----------------------|---------------------|------------|------------| | Revenue | 4,795 | 23% | 4% | | Gross Profit | 1,574 | 43% | 0% | | EBIT | 1,173 | 67% | 2% | | Net Income | 881 | 54% | -8% | | EPS | 0.22 | 54% | -8% | | Net Margin | 18% | 3.7ppt | -2.3ppt | | EBIT Margin | 24% | 6.5ppt | -0.5ppt | | SG&A % of Revenue | 7% | 1.6ppt | 0.4ppt | [3] Risks and Considerations - **Upside Risks**: Better-than-expected demand and decreasing raw material prices - **Downside Risks**: Global demand slowdown, rising raw material prices, and industry overcapacity [10] Conclusion China Jushi's strong financial performance in 3Q25, driven by significant sales volume growth and effective cost management, positions the company favorably for continued success in the upcoming quarters. The anticipated demand in the glass fiber market and advancements in product offerings further enhance the investment thesis for China Jushi.