Report Summary 1) Report Industry Investment Rating - Not provided in the given content 2) Core View of the Report - The cotton futures price is expected to fluctuate with a slight upward trend, and attention should be paid to the situation of new cotton crops [1] 3) Summary by Relevant Catalogs Fundamental Tracking - **Futures Data**: - CF2601 closed at 14,070 yuan/ton yesterday with a daily decline of 0.04%, and 14,270 yuan/ton in the night session with a night - session increase of 1.42%. Its trading volume was 288,889 lots, an increase of 26,527 lots from the previous day, and the open interest was 700,389 lots, a decrease of 8,588 lots [1]. - CY2511 closed at 20,090 yuan/ton yesterday with a daily decline of 0.05%, and 20,175 yuan/ton in the night session with a night - session increase of 0.42%. Its trading volume was 6,502 lots, a decrease of 1,999 lots from the previous day, and the open interest was 22,701 lots, an increase of 1,045 lots [1]. - ICE Cotton No. 12 closed at 67.28 cents/pound yesterday with an increase of 0.95% [1]. - **Warehouse Receipt Data**: - The number of Zhengzhou cotton warehouse receipts was 7,762, a decrease of 67 from the previous day, and the effective forecast was 249, unchanged from the previous day [1]. - The number of cotton yarn warehouse receipts was 69, a decrease of 5 from the previous day, and the effective forecast was 0, an increase of 74 from the previous day [1]. - **Spot Price Data**: - The price of Northern Xinjiang 3128 machine - picked cotton was 15,317 yuan/ton, a decrease of 5 yuan from the previous day with a decline of 0.03% [1]. - The price of Southern Xinjiang 3128 machine - picked cotton was 15,013 yuan/ton, unchanged from the previous day [1]. - The price in Shandong was 15,358 yuan/ton, a decrease of 15 yuan from the previous day with a decline of 0.10% [1]. - The price in Hebei was 15,306 yuan/ton, an increase of 9 yuan from the previous day with an increase of 0.06% [1]. - The 3128B index was 15,336 yuan/ton, a decrease of 6 yuan from the previous day with a decline of 0.04% [1]. - The International Cotton Index: M: CNCottonM was 74.24 cents/pound, a decrease of 0.07 cents from the previous day with a decline of 0.09% [1]. - The price of pure - cotton carded yarn 32 - count was 20,760 yuan/ton, unchanged from the previous day [1]. - The arrival price of pure - cotton carded yarn 32 - count was 21,865 yuan/ton, a decrease of 32 yuan from the previous day with a decline of 0.15% [1]. - **Spread Data**: - The CF9 - 1 spread was - 295 yuan/ton, a decrease of 10 yuan from the previous day [1]. - The spread between Northern Xinjiang 3128 machine - picked cotton and CF509 was 1,250 yuan/ton, unchanged from the previous day [1]. Macro and Industry News - **Domestic Cotton Spot**: The overall trading of domestic cotton spot was rather sluggish, with partial areas performing well, and the basis remained stable. The mainstream sales basis of 2024/25 North and South Xinjiang machine - picked cotton (3129/29 - 30B, impurity within 3.5) was CF01 + 1150 - 1400, and most of the Southern Xinjiang lint was quoted at 1150 - 1300 for inland self - pick - up. The 2024/25 Northern Xinjiang Corps machine - picked cotton (4129/29~30B, impurity within 3) was traded around CF09 + 1700 for in - Xinjiang self - pick - up [1][2]. - **Domestic Cotton Textile Enterprises**: The trading in the pure - cotton yarn market slowed down. Spinning mills reported that orders were not as good as those in the middle of the month. The market mainly sold varieties of C40S and below, and the feedback on high - count yarn was average. Cotton yarn prices were mainly stable, and spinning mills had a certain willingness to hold prices, but high - priced transactions were difficult [1][2]. - **US Cotton**: Yesterday, ICE cotton futures rose slightly. After falling below 67 cents/pound again, commercial and technical buying pushed it to rebound. The weekly US cotton export sales data was still average. As of the week ending August 21, the net increase in US cotton export sales for the 25/26 season was 179,300 bales [1][2]. Trend Intensity - The trend intensity of cotton is 0, indicating a neutral trend [4]

Group 1: Investment Rating - No investment rating information is provided in the report. Group 2: Core View - The futures price of cotton is fluctuating and showing a slightly stronger trend [1]. Group 3: Summary by Relevant Catalogs 1. Fundamental Tracking - **Futures Data**: CF2601 closed at 14,030 yuan/ton with 0.00% daily increase and 14,155 yuan/ton in the night session with 0.89% increase; CY2511 closed at 20,060 yuan/ton with 0.00% daily increase and 20,180 yuan/ton in the night session; ICE US cotton 12 rose 0.79% to 68 cents/pound. For trading volume and open interest, CF2601 had 214,219 contracts traded with an increase of 16,126 from the previous day and an open interest of 727,579 contracts with a decrease of 6,325; CY2511 had 5,396 contracts traded with a decrease of 1,999 and an open interest of 21,958 contracts with an increase of 1,045 [1]. - **Warehouse Receipt Data**: Zhengzhou cotton had 7,198 warehouse receipts with a decrease of 137 and 63 valid forecasts with a decrease of 125; cotton yarn had 64 warehouse receipts with a decrease of 5 and 0 valid forecasts with an increase of 69 [1]. - **Spot Price Data**: The price of Northern Xinjiang 3128 machine - picked cotton was 15,272 yuan/ton with no change; Southern Xinjiang 3128 machine - picked cotton was 14,963 yuan/ton with no change; the price in Shandong was 15,243 yuan/ton with an increase of 35 (0.23%); in Hebei, it was 15,249 yuan/ton with an increase of 45 (0.30%); the 3128B index was 15,243 yuan/ton with an increase of 33 (0.22%); the international cotton index M was 74.95 cents/pound with a decrease of 0.24%. The price of pure - cotton carded yarn 32S was 20,720 yuan/ton with an increase of 20 (0.10%), and its arrival price was 22,053 yuan/ton with an increase of 18 (0.08%) [1]. - **Spread Data**: The CF9 - 1 spread was - 270 yuan/ton with a decrease of 10; the spread between Northern Xinjiang 3128 machine - picked cotton and CF509 was 1,240 yuan/ton with no change [1]. 2. Macro and Industry News - **Domestic Cotton Spot**: Cotton spot trading had partial good transactions. Southern Xinjiang cotton was mostly traded inland. The sales basis of inland warehouse cotton spot was stable, and the shipment was average. Spinning mills mainly made rigid - demand purchases. The mainstream sales basis of 2024/25 North and South Xinjiang machine - picked 3129/29 - 30B with impurity within 3.5 was CF09 + 1400 - 1550, inland self - pick; the mainstream sales basis of 2024/25 Northern Xinjiang local machine - picked 4129/29B with impurity within 3.5 was CF01+1300 and above, Xinjiang self - pick [2]. - **Domestic Cotton Textile Enterprises**: The trading in the pure - cotton yarn market was okay. Spinning mills' inventory continued to decline. Inland spinning mills had a cash - flow loss of about 500 yuan/ton, and the current production - restriction situation had no improvement. The pure - cotton grey fabric market was generally stable and weak, with limited market improvement. The downstream inquiry and transaction were average, and the inventory pressure of weaving factories slowly decreased [2]. - **US Cotton**: Last Friday, ICE cotton futures rose slightly, driven by the US interest - rate cut expectation [3]. 3. Trend Intensity - The trend intensity of cotton is 0, indicating a neutral view. The range of trend intensity is from - 2 (most bearish) to 2 (most bullish) [4][5].

Report Summary Report Industry Investment Rating No information provided. Core Viewpoints - The cotton spot trading is average, with textile enterprises mainly making rigid - demand purchases. The spot basis remains relatively stable. The trading in the pure - cotton yarn market has rebounded, but overall it is still average, and the yarn price continues to rise slightly. The ICE cotton futures are in short - term oscillation waiting for new drivers [2]. Summary by Relevant Catalogs 1. Fundamental Tracking - **Futures Data**: For CF2601, the closing price was 14,100 yuan/ton with a daily decline of 0.18%, and the night - session closing price was 14,100 yuan/ton with no change. The trading volume was 209,409 lots, a decrease of 31,617 lots from the previous day, and the open interest was 759,524 lots, a decrease of 4,507 lots. For CY2511, the closing price was 20,145 yuan/ton with a daily decline of 0.05%, and the night - session closing price was 20,160 yuan/ton with a 0.07% increase. The trading volume was 7,879 lots, a decrease of 1,999 lots from the previous day, and the open interest was 21,914 lots, an increase of 1,045 lots. The ICE US cotton 12 closed at 67.53 cents/pound, a 0.46% decline [1]. - **Warehouse Receipt Data**: The number of Zhengzhou cotton warehouse receipts was 7,762, a decrease of 67 from the previous day, and the valid forecast was 249 with no change. The number of cotton yarn warehouse receipts was 69, a decrease of 5 from the previous day, and the valid forecast was 0, an increase of 74 [1]. - **Spot Price Data**: The price of Northern Xinjiang 3128 machine - picked cotton was 15,292 yuan/ton, an increase of 50 yuan/ton (0.33%) from the previous day; the price of Southern Xinjiang 3128 machine - picked cotton was 14,983 yuan/ton, an increase of 50 yuan/ton (0.33%) from the previous day. The 3128B index was 15,243 yuan/ton, an increase of 9 yuan/ton (0.06%) from the previous day. The international cotton index M was 75.34 cents/pound, an increase of 0.26 cents/pound (0.35%) from the previous day. The price of pure - cotton carded yarn 32s was 20,700 yuan/ton, a decrease of 20 yuan/ton (- 0.10%) from the previous day [1]. - **Spread Data**: The CF9 - 1 spread was - 295 yuan/ton, a decrease of 10 yuan/ton from the previous day; the spread between Northern Xinjiang 3128 machine - picked cotton and CF509 was 1,190 yuan/ton, an increase of 80 yuan/ton from the previous day [1]. 2. Macro and Industry News - **Domestic Cotton Spot**: According to TTEB information, the cotton spot trading is average, with textile enterprises mainly making rigid - demand purchases. The offers of cotton in inland warehouses are relatively numerous, and the spot basis remains relatively stable. Different regions and qualities of cotton have different sales bases [2]. - **Domestic Cotton Textile Enterprises**: The trading in the pure - cotton yarn market has rebounded, with increased downstream restocking purchases, but overall it is still average. The feedback from textile enterprises varies greatly, and the yarn price continues to rise slightly [2]. - **US Cotton**: The ICE cotton futures declined slightly yesterday. The US Department of Agriculture lowered the US cotton production and ending stocks for the 25/26 season, providing support for the ICE cotton futures. The ICE cotton is in short - term oscillation waiting for new drivers [2]. 3. Trend Intensity The trend intensity of cotton is 0, indicating a neutral view. The trend intensity ranges from - 2 (most bearish) to 2 (most bullish) [5].

Group 1 - The company reported a revenue of 3.591 billion yuan for the first half of 2025, representing a year-on-year decrease of 9.99% [1] - The net profit attributable to shareholders increased to 390 million yuan, showing a year-on-year growth of 67.53% [1] - The basic earnings per share were reported at 0.26 yuan [1] Group 2 - The company proposed a cash dividend of 1.5 yuan per 10 shares (including tax) [1]

Core Viewpoint - The cotton fiber industry in China is undergoing a critical transformation, driven by policies promoting intelligent, green, and high-value upgrades, with a focus on domestic demand recovery and export resilience despite import restrictions [1][4][14]. Group 1: Industry Overview - Cotton fiber, a natural seed fiber primarily composed of cellulose, is essential in the textile industry due to its unique structure, which provides softness and moisture absorption [2]. - The industry is categorized into three types based on botanical varieties: short-staple cotton, long-staple cotton, and coarse cotton, and further classified by processing methods and quality indicators [2]. Group 2: Development Background - China has established a systematic policy framework to support the cotton fiber industry, including various development guidelines aimed at technological innovation, green manufacturing, and digital empowerment [4]. - Xinjiang, as a major cotton-producing region, has implemented policies to enhance the cotton and textile industry through subsidies and support for intelligent and green upgrades [4]. Group 3: Current Industry Status - The cotton textile industry in China is experiencing a recovery, with a June 2025 industry prosperity index reaching 50.3%, indicating a return to growth driven by improved domestic consumption and macroeconomic signals [7]. - The domestic cotton market is projected to see an increase in production to 6.664 million tons in the 2024/25 season, while consumption is expected to decrease to 7.8 million tons, leading to a "production increase, demand decrease" scenario [14]. Group 4: Industry Chain Analysis - The cotton fiber industry chain is characterized by upstream large-scale planting, midstream intelligent processing, and downstream diversified applications, with Xinjiang accounting for 90% of national production [9]. - The downstream sector is expanding into high-value areas such as medical cotton products and biodegradable fibers, while the export sector is transitioning towards ODM/OBM models [9][11]. Group 5: Competitive Landscape - The competitive landscape of the cotton fiber industry is marked by a "dual tower" structure, with leading companies like Weiqiao Textile and Huafu Fashion dominating the market through comprehensive industry chain layouts and technological innovation [18][20]. - The industry is witnessing a trend towards increased concentration, with a significant number of small and medium enterprises seeking breakthroughs through equipment upgrades and market repositioning [18]. Group 6: Future Trends - The industry is moving towards intelligent and green transformations, with advancements in biotechnology and digital technology reshaping traditional planting and processing methods [23][24]. - There is a growing emphasis on sustainable development and circular economy practices, with organic cotton production expanding and new biomanufacturing techniques emerging [25][26].

Group 1 - The financial sector plays a crucial role in supporting various industries and the overall economy, as highlighted by the Central Financial Work Conference [1] - Xinjiang is recognized as China's largest cotton production base, benefiting from its favorable climate for cotton growth, which includes ample sunlight and significant temperature variations [2] - The cotton harvesting process in Xinjiang has become highly mechanized, with advanced machinery like the "Tian'e" cotton picker significantly improving efficiency and productivity for farmers [2] Group 2 - The cotton processing stage, known as ginning, is essential for converting seed cotton into lint cotton, which is then used for spinning [3] - Xinjiang Jianzi Cotton Industry Co., Ltd. has expanded its operations by integrating upstream and downstream processes, enhancing market reach and value addition, while also facing increased financial pressure for raw material procurement [3] - The company reports an annual revenue of approximately 2 billion yuan, supported by tailored financial products from Guangfa Bank [3] Group 3 - The transformation from raw cotton to yarn involves complex textile processes that combine modern technology with traditional craftsmanship [4] - Donghengxing Textile Technology Co., Ltd. has benefited from Guangfa Bank's financial support, which has enabled the company to innovate and improve its production capabilities [4] - The bank provided over 300 million yuan in loans to support the company's operational needs and technological advancements [4] Group 4 - Xinjiang's textile industry is positioned as a key player in China's Belt and Road Initiative and the Xinjiang Free Trade Zone, contributing to high-quality economic development [5] - Guangfa Bank aims to promote high-quality Xinjiang cotton on a global scale, supporting the region's economic and social development [5]

Group 1 - In July, cotton yarn prices increased due to a significant rise in cotton prices, which pushed the cost of cotton yarn higher. The average monthly price of cotton in China reached approximately 14,741 yuan/ton, a 3.41% increase from the previous month, but a year-on-year decrease [1] - The profit margins for cotton spinning enterprises have declined, with the theoretical monthly gross profit for pure cotton yarn dropping to -720.35 yuan/ton, a decrease of 50.15 yuan/ton from the previous month. The operating rate of cotton spinning enterprises was 61.20%, down 0.75 percentage points from the previous month [1] - Cotton spinning enterprises are experiencing a decrease in orders, with the average order days for Shandong cotton spinning enterprises at 4.93 days, a decline of 0.20 days from the previous month. The inventory days for pure cotton yarn increased by 11.11% to an average of 30 days [1] Group 2 - The cotton market is expected to return to fundamentals, with limited orders from downstream textile enterprises and poor profit margins potentially suppressing cotton demand. The anticipated increase in new season cotton production is also contributing to this outlook [2] - It is projected that cotton yarn prices may experience a slight decline in August, with an expected drop of 100 yuan/ton to a range of 21,100-21,700 yuan/ton. The situation will be closely monitored regarding order follow-ups and macro market changes [2]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - Cotton futures prices reached a new high for the year. The trend strength of cotton is neutral with a value of 0 [1][4]. - Domestic cotton spot trading was average, with local basis - locked transactions and stable overall basis. The cotton yarn market was lackluster, and the cotton fabric market had few real orders and high inventory [2]. - ICE cotton futures fluctuated narrowly after two consecutive days of gains and were waiting for the export sales data on Thursday [2]. 3. Summary by Relevant Catalogs 3.1 Fundamental Tracking - **Futures Data**: - CF2509 closed at 13,990 yuan/ton yesterday with a daily increase of 1.01%, and 14,165 yuan/ton in the night session with a night - session increase of 1.25%. Trading volume was 386,635 lots, an increase of 89,128 lots from the previous day, and the open interest was 883,428 lots, an increase of 37,744 lots [1]. - CY2509 closed at 20,180 yuan/ton yesterday with a daily increase of 0.65%, and 20,360 yuan/ton in the night session with a night - session increase of 0.89%. Trading volume was 7,504 lots, a decrease of 1,999 lots from the previous day, and the open interest was 20,395 lots, an increase of 1,045 lots [1]. - ICE cotton 12 closed at 68.56 cents/pound yesterday with a decrease of - 0.01% [1]. - **Warehouse Receipt Data**: - Zhengzhou cotton warehouse receipts were 9,643, a decrease of 73 from the previous day, and the effective forecast was 223, unchanged from the previous day [1]. - Cotton yarn warehouse receipts were 98, unchanged from the previous day, and the effective forecast was 0, an increase of 98 from the previous day [1]. - **Spot Data**: - The price of Beijiang 3128 machine - picked cotton was 15,320 yuan/ton, an increase of 120 yuan/ton from the previous day with a growth rate of 0.79%. The price of Nanjiang 3128 machine - picked cotton was 14,990 yuan/ton, an increase of 120 yuan/ton from the previous day with a growth rate of 0.81% [1]. - The price in Shandong was 15,226 yuan/ton, a decrease of 38 yuan/ton from the previous day with a decline rate of - 0.25%. The price in Hebei was 15,313 yuan/ton, a decrease of 49 yuan/ton from the previous day with a decline rate of - 0.32% [1]. - The 3128B index was 15,272 yuan/ton, a decrease of 30 yuan/ton from the previous day with a decline rate of - 0.20%. The international cotton index M was 76.14 cents/pound, an increase of 0.58% from the previous day [1]. - The price of pure - cotton carded yarn 32S was 20,520 yuan/ton, unchanged from the previous day. The arrival price of pure - cotton carded yarn 32S was 22,122 yuan/ton, an increase of 13 yuan/ton from the previous day with a growth rate of 0.06% [1]. - **Spread Data**: - The CF9 - 1 spread was 95 yuan/ton, a decrease of 30 yuan/ton from the previous day. The spread between Beijiang 3128 machine - picked cotton and CF509 was 1,330 yuan/ton, a decrease of 20 yuan/ton from the previous day [1]. 3.2 Macro and Industry News - **Domestic Cotton Spot**: According to TTEB, cotton spot trading was average, with local basis - locked transactions and stable overall basis. Different regions and qualities of cotton had different basis quotes [2]. - **Domestic Cotton Textile Enterprises**: The pure - cotton yarn market had little change in trading, and the overall atmosphere was still dull. Yarn prices were stable with a slight upward trend, and downstream enterprises were gradually digesting the previous price increases. The off - season continued, and spinning mills continued to reduce production by lowering the operating rate to relieve inventory pressure. The all - cotton fabric market had few real orders, and manufacturers had high inventory and poor sales [2]. - **US Cotton**: ICE cotton futures fluctuated narrowly after two consecutive days of gains and were waiting for the export sales data on Thursday [2]. 3.3 Trend Strength The trend strength of cotton is 0, indicating a neutral trend, with the value ranging from - 2 (most bearish) to 2 (most bullish) [4].

Core Insights - Wei Qiao Chuang Ye Group has evolved from a small cotton processing factory in Shandong to a multinational enterprise with 100,000 employees, consistently ranked among the Fortune Global 500 since 2012 [1] - The company focuses on traditional manufacturing sectors such as textiles and aluminum, while also expanding into emerging fields like new energy, new materials, and automotive lightweighting [1] - In 2024, the company is projected to achieve sales revenue of 558.3 billion yuan, contributing to employment for over 500,000 people [1] Group 1: Business Overview - Wei Qiao Chuang Ye Group is a leading player in the global cotton textile and electrolytic aluminum industries, having been recognized in the Fortune Global 500 for 13 consecutive years [1] - The company has established over 20 innovation platforms, developing more than 3,000 new products annually and holding over 2,800 patents, with 19 technologies reaching international leading standards [1] - The company operates 16 internationally advanced intelligent textile factories and is building a world-class research and manufacturing base for automotive lightweighting [1] Group 2: Development Strategies - The company emphasizes green and low-carbon development as a pathway for high-quality growth, particularly in the energy-intensive aluminum sector, by relocating some production to Yunnan to utilize hydropower and deploying solar energy in Shandong [2] - The company is actively pursuing digital transformation, leveraging AI technology to enhance production efficiency and reduce energy consumption in the aluminum sector [2] - Innovation is driven not only through product and process improvements but also through collaborations with educational institutions and research centers, fostering internal motivation for innovation and embracing AI and big data for management and operational enhancements [3]

Group 1 - The concept of "basis" is increasingly discussed and utilized in the cotton textile industry, reflecting the deep integration of cotton futures and the spot market, which is profoundly impacting the industry's development [1] - The cotton spinning industry in China is experiencing a decline in revenue and profit, influenced by regional capacity restructuring and increased competition, as well as complex international conditions and rising tariff barriers [2][3] - The correlation between cotton futures prices and the domestic spot price index CC Index3128B has remained high, with a correlation coefficient above 0.9, indicating a strong relationship between the two markets [3] Group 2 - Cotton enterprises are actively exploring new models of utilizing futures, with companies like Zhongmian Group adopting a resource control model to enhance their operational stability and risk management [4] - Large trading companies are integrating futures tools into their operations, using warehouse receipt pledge financing to support upstream cotton purchases and employing basis trading and options trading to lock in profits and mitigate risks [5] - Small and medium-sized enterprises are adopting flexible strategies to participate in the futures market, often relying on large trading firms for risk management and financing through warehouse receipt pledge financing [6] Group 3 - The Zhengzhou Commodity Exchange has expanded its business model to provide new financing tools for cotton textile enterprises, addressing their significant financing needs [6][7] - In 2018, the Zhengzhou Commodity Exchange launched a comprehensive business platform that allows entities to trade warehouse receipts, catering to diverse procurement and financing needs [7] - The scale of warehouse receipt repurchase business reached 3.9 billion yuan in 2019, with a significant portion attributed to cotton warehouse receipts, indicating a growing reliance on warehouse receipt financing among enterprises [7]