Core Viewpoint - The company, Taihe New Materials, reported on its performance and market conditions for spandex and aramid fibers during an investor Q&A session, highlighting price stability and growth in certain product lines while addressing challenges in production and competition [1][23]. Spandex Market - The price of spandex has not changed significantly compared to the end of last year, with a slight increase in product quality leading to a minor price rise [2][6]. - The company has implemented optimizations in processes and equipment, resulting in reduced energy consumption and improved investment density compared to peers [6][8]. - The outlook for spandex in the next 2-3 years appears cautious, with no major opportunities anticipated as production expansion is still ongoing and downstream demand remains average [10]. Aramid Fiber Market - The company reported growth in meta-aramid fibers in terms of volume, revenue, and profit, with stable pricing and slight increases in low-end industrial filtration [4]. - The para-aramid fibers have not stabilized completely, but the motivation for further price cuts in the industry seems weak, indicating a potential bottoming out [4]. - The company plans to enhance its market share, particularly in overseas markets, while focusing on quality improvements and developing differentiated products [20]. Green Dyeing Technology - The company is exploring two models for green dyeing: a low wastewater and low energy consumption model in Yantai and a digital printing model in Guangdong, with the latter showing better market promotion potential [5]. - There are challenges in the Yantai model due to technical imperfections and limited short-term application scenarios, prompting a shift towards digital printing and dyeing [5]. Financial Performance - In Q1 2025, the company reported a main revenue of 1.058 billion yuan, a year-on-year increase of 9.45%, but a net profit decline of 54.12% to 11.55 million yuan [23]. - The gross margin stands at 17.45%, indicating pressure on profitability despite revenue growth [23]. Future Developments - The company is working on new products, including T2T recycling technology and solutions for electric vehicle transport safety, aiming to address market needs and enhance its competitive edge [21][22].

Group 1: Market Conditions and Product Performance - The price of spandex has not changed significantly compared to the end of last year, with a slight increase in quality and price [2] - The production and profitability of meta-aramid have increased, while the price remains stable; para-aramid has not fully stabilized but is expected to see a bottoming out [2][3] - The differentiation ratio of spandex is currently around 10%, with plans to increase it to 30% in the future [5] Group 2: Production and Cost Analysis - The overall cost in Ningxia is lower compared to Yantai [3] - The investment density for spandex is higher than that of peers, attributed to design standards and production delays [3][5] - Both meta-aramid and para-aramid have a production capacity of 16,000 tons each [7] Group 3: Strategic Developments and Innovations - The company is focusing on optimizing existing products and exploring new product lines, including T2T recycling and safety solutions for electric vehicle transport [7] - The company is also developing a platform to provide operational solutions for large enterprises in the aramid product sector [7] - The company aims to enhance its market share, particularly in overseas markets, while addressing quality improvements and product differentiation [7]