Jasan Group(SH:603558) Zheng Quan Shi Bao Wang·2026-01-06 10:28Core Viewpoint - The company has decided to terminate its project in Vietnam due to a breach of contract by the land lessor, which has significantly impacted critical operations such as equipment installation and hiring [1] Group 1: Project Termination - The company announced the termination of its project to produce 60 million pairs of mid-to-high-end cotton socks and 30 million pieces of clothing in Vietnam due to the land lessor's unilateral delay in issuing the land use rights certificate [1] - The project was still in the early land leasing stage, with no financial investment made, and both parties have agreed to terminate the agreement without pursuing any compensation [1] - The total investment for the project was planned at 180 million yuan, with a construction period of two years, aimed at expanding production capacity in Vietnam and enhancing profitability [1] Group 2: Current Operations and Capacity - The company stated that the termination of this project will not significantly adversely affect its existing operations, as current production capacity in domestic and other bases in Vietnam can meet current order demands [1] - The company has established production bases in Vietnam, including Hai Phong, Hung Yen, Thanh Hoa, and Nam Dinh, with overall operations running well [2] - However, the existing production capacity in Vietnam is gradually reaching saturation, with the current sock production capacity being approximately 30% in China and 70% in Vietnam [2] Group 3: Expansion Plans - In December 2025, the company announced two significant investment plans, including a project in Egypt with an investment of 818 million yuan to produce 180 million pairs of socks and other products, expected to start construction in June 2026 [3] - Additionally, the company plans to invest 350 million yuan in an intelligent manufacturing factory for socks in Zhejiang, which will incorporate advanced equipment and systems to achieve an annual production capacity of 100 million pairs of high-end socks [3]