Report Overview - Report title: [Galaxy Research] Investigation Report on Cotton Planting and Inventory in Northern Xinjiang (II) [2] - Report date: June 17, 2025 [2] - Researcher: Liu Qiannan [7] Research Background - The cotton planting area will continue to increase in the 2025/26 season, and the report aims to understand the change in Xinjiang's cotton output [3] - Xinjiang's spinning capacity is approaching 30 million spindles and still expanding, and the report wants to know the operation of textile enterprises under the deteriorating international trade environment [3] - With the accelerating出库 speed of Xinjiang cotton, the report intends to find out the real inventory situation due to concerns about tight supply during the off - season before new cotton is on the market [3] Research Route - Urumqi - Wujiaqu - Shihezi - Kuitun - Jinghe [4] Research Findings Spinning Enterprise D - Enterprise situation: It has a capacity of about 100,000 spindles, two processing workshops (self - operated and contract - processing), 30 - 50 employees, mainly produces pure - cotton yarn C32S and C40S, and the processing fee is 4000 - 5000 yuan/ton with different varieties having different fees [6] - Startup situation: Its textile machines in Xinjiang are mostly running, while its inland spinning mills operate during off - peak hours at night as many inland spinning machines are shut down [8] - Inventory: Since it mainly does contract - processing, its cotton and yarn inventories are small [9] - Order situation: Orders are average, and the high impurity in cotton affects yarn quality [9] - Market outlook: The downstream market is average, cotton prices may have small fluctuations. The enthusiasm of ginning factories in Northern Xinjiang to lease factories is low, and some have the idea of selling off, showing less confidence than in previous years [9] Warehouse E - Enterprise situation: It has a storage capacity of about 150,000 tons [10] - Cotton inventory: The incoming volume this year accounts for about 50% of the total capacity. The peak outgoing volume can reach 2000 tons/day, with peak periods after the Spring Festival and in April. The outgoing speed has slowed down recently, and the remaining inventory is small, with most goods owned by large enterprises and little by private enterprises [10] Warehouse F - Enterprise and inventory situation: It has a small storage capacity of 40,000 - 50,000 tons, and the remaining cotton inventory is low. The outgoing speed has slowed down recently. The cotton outgoing progress this year is slightly faster than last year, with 20+ trucks per day during the peak last year and 3 - 4 trucks per day recently [11] Warehouse G - Enterprise and inventory situation: It is a large warehouse with a capacity of 400,000 - 500,000 tons. The incoming volume this year is slightly less, about 300,000 - 350,000 tons. It still has some inventory, and the outgoing speed has slowed down recently after being fast after the Spring Festival and maintaining a basic volume in March and April [12] - Other: The new cotton is growing well, and the output in the new season may not change much compared to this season. Some ginning factories in Northern Xinjiang plan to lease or sell off, and the willingness of enterprises to lease factories is low this year [12]