Core Viewpoint - The company, Xingye Technology, has signed a strategic cooperation agreement with Suzhou Nengsida Electronic Technology to jointly develop flexible electronic skin based on natural leather and bio-based materials [1] Group 1: Company Collaboration - Xingye Technology will be responsible for the research and production of natural leather, high-bio-based regenerated leather, and environmentally friendly materials [1] - Suzhou Nengsida will focus on sensor technology, with both companies collaborating on integrating sensor technology with natural leather and bio-based materials [1] Group 2: Product Development and Applications - The partnership aims to incubate flexible electronic skin products, leveraging each company's brand and customer channels [1] - The advanced technological fabrics developed will be applied in key components of humanoid robots, automotive seats, steering wheels, smart wearable devices, footwear, and leather goods [1]

Group 1 - Dongguan Xinyao Leather Co., Ltd. has been established with a registered capital of 300,000 RMB [1] - The company's business scope includes leather sales, leather product sales, synthetic fiber manufacturing, and ecological environment material sales [1] - Additional activities include the sale of shoe raw materials, textile products, chemical products (excluding licensed chemical products), and various technical services [1] Group 2 - The company is also involved in the retail of hardware products, sales of synthetic materials, plastic products, rubber products, and bags [1] - It engages in the sale of metamaterials, packaging materials and products, and internet sales (excluding items requiring licenses) [1] - The company is authorized to conduct import and export activities, as well as technology import and export, without needing prior approval for projects not requiring it [1]

Group 1 - Dongguan Tengxi New Materials Co., Ltd. has been established with a registered capital of 600,000 RMB [1] - The company's business scope includes leather products manufacturing, new materials technology research and development, synthetic materials sales, and leather sales [1] - Additional activities include sales of footwear raw materials, industrial textile products, and hardware products [1]

Company Overview - Amway Co., Ltd. (SZ 300218) announced that on September 5, 2025, it will accept investor research from Guohai Securities and others, with participation from the company's board secretary and deputy general manager, Liu Songxia [1] - As of the report, Amway's market capitalization stands at 4.7 billion yuan [1] Financial Performance - For the year 2024, Amway's revenue composition is as follows: synthetic leather accounts for 98.35% and other businesses account for 1.65% [1]

Investment Rating - The report initiates coverage with an "Accumulate" rating for the company [10]. Core Views - The company's automotive leather business shows strong performance, with a significant increase in orders from new clients and overseas markets, particularly in the electric vehicle sector [2][4]. - Despite a decline in net profit, the overall revenue growth indicates resilience, driven by the automotive segment [2][3]. Summary by Sections Financial Performance - In H1 2025, the company's revenue increased by 6.2% year-on-year to 1.34 billion yuan, while net profit dropped by 45.3% to 30 million yuan [1][2]. - Q2 2025 revenue grew by 7.2% year-on-year to 710 million yuan, with net profit also declining by 45.3% to 10 million yuan [1]. Business Segments - The leather business for shoes and bags saw a slight revenue decline of 0.1% to 850 million yuan due to weak domestic orders, while the automotive interior leather segment experienced a robust growth of 29.5% to 380 million yuan, driven by increased orders from brands like Li Auto and NIO [2]. - The company is expanding its overseas production capacity with ongoing construction in Indonesia and Vietnam, which will support future order fulfillment [2]. Profitability and Costs - The gross margin for H1 2025 increased by 0.1 percentage points to 20.5%, with the automotive leather segment improving its margin by 3.2 percentage points to 34.6%, while the margin for the shoe and bag leather segment decreased by 2.2 percentage points to 15.7% [3]. - Selling and administrative expense ratios increased by 0.3 and 0.7 percentage points, respectively, leading to a decline in net profit margin by 2.2 percentage points to 2.3% [3]. Future Projections - The company is expected to achieve revenue growth of 6%, 9.8%, and 8.4% for the years 2025 to 2027, reaching 3.13 billion, 3.43 billion, and 3.72 billion yuan, respectively [4]. - Net profit forecasts show a decline of 13.5% in 2025, followed by growth of 30% and 19.9% in 2026 and 2027, respectively [4].

Core Insights - The report by Zhiyan Consulting analyzes the current market status and industry trends of the leather industry in China from 2025 to 2031 [1] Group 1: Import Data - In June 2025, China's imports of cowhide and horsehide amounted to 44,500 tons, representing a year-on-year decrease of 24.9% [1] - The import value for the same period was $9.9 million, reflecting a year-on-year decline of 26.8% [1] Group 2: Industry Analysis - Zhiyan Consulting is recognized as a leading industry consulting firm in China, specializing in in-depth industry research reports, business plans, feasibility studies, and customized services [2] - The firm emphasizes its professional approach, quality services, and keen market insights to provide comprehensive industry solutions that empower investment decisions [2]

Group 1: Financial Performance - The company achieved a revenue of 1.339 billion yuan, representing a year-on-year growth of 6.16% [3] - The net profit attributable to shareholders was 31.2508 million yuan, a decline of 45.32% compared to the same period last year [3] Group 2: Domestic Market Conditions - Domestic consumer demand remains weak, leading to a decrease in the procurement needs of existing downstream customers for shoe and bag leather [4] - The company is actively adjusting sales channels and expanding into internet brand customers, resulting in growth for certain clients [4] Group 3: Overseas Market Expansion - The company entered the adidas supply chain in the first half of 2024, with revenue contributions remaining stable [4] - New partnerships with brands like ZARA have been established, and the company is expanding its overseas factories in Indonesia and Vietnam to meet local supply demands [4][5] - The gross margin for overseas products is higher than that of domestic sales, which is expected to enhance profitability as overseas sales increase [4] Group 4: Automotive Interior Leather Performance - The subsidiary, Hongxing Automotive Leather, achieved a revenue of 375 million yuan, a year-on-year increase of 26.95% [6] - The net profit for this segment was 7.65654 million yuan, reflecting a growth of 30.91% [6] - The company is collaborating with various automotive brands, including NIO and Jianghuai Automobile, to supply high-end interior leather products [6]

Core Viewpoint - A new company, Wuj County Fuyou Leather Co., Ltd., has been established with a registered capital of 300,000 RMB, focusing on various leather-related manufacturing and sales activities [1] Company Summary - The legal representative of the company is Geng Zhanbin [1] - The registered capital of the company is 300,000 RMB [1] - The business scope includes leather product manufacturing, leather product sales, leather sales, primary agricultural product acquisition, agricultural and sideline product sales, chemical product sales (excluding licensed chemical products), and general cargo warehousing services (excluding hazardous chemicals that require licensing) [1]

Group 1 - The company reported a revenue of 1.339 billion yuan for the first half of 2025, representing a year-on-year growth of 6.16% [1] - The net profit attributable to shareholders of the listed company was 31.2508 million yuan, showing a year-on-year decline of 45.32% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 26.9678 million yuan, down 51.41% year-on-year [1] - The basic earnings per share were 0.1059 yuan [1]

Group 1 - A new company, Hebei Zhuolin Leather Co., Ltd., has been established with a registered capital of 3 million RMB [1] - The legal representative of the company is Zhang Jingpu [1] - The business scope includes manufacturing and sales of leather products, sales of leather, acquisition of primary agricultural products, sales of agricultural and sideline products, sales of chemical products (excluding licensed chemical products), general cargo warehousing services (excluding hazardous chemicals), import and export of goods, technology import and export, and import and export agency services [1]