Core Insights - FavoTech (688371) has signed a strategic cooperation agreement with Wuxi Langyi New Materials Co., Ltd. to jointly launch the FavoMedNano fluorine-free nano-coating solution, designed for efficient liquid barrier and bacterial protection in the medical and sports fabric sectors [1][2] Company Overview - Langyi New Materials specializes in producing base fabrics and protective products for the medical and sports industries, with a fully automated production system from cotton to finished products, serving leading companies domestically and internationally [1] - FavoTech is a leader in the nano-protection field, with core technologies applied across various sectors including consumer electronics, automotive electronics, and industrial control, successfully utilized in products from top enterprises [1] Product Features - The FavoMedNano solution creates a transparent film layer on fabric surfaces, with a thickness measured in nanometers, allowing water droplets, blood, or sweat to slide off quickly without adhering [1] - The solution forms an invisible barrier on products like band-aids, maintaining a rolling angle stability between 14-16° and a water contact angle of up to 130°, effectively blocking bacteria from entering wounds while ensuring breathability and comfort [2] - The film layer is made from halogen-free and fluorine-free eco-friendly materials, certified for environmental and biocompatibility standards, balancing high protection with safety [2] Market Potential - Market research predicts that the global medical protective textile market will exceed $40 billion by 2027, while the functional sports fabric sector is expected to grow at a compound annual growth rate of 12% [2] - The collaboration aims to combine the technological and industrial strengths of both companies to provide more environmentally friendly, advanced, and superior solutions for functional textiles in the medical and sports industries [2] Strategic Vision - FavoTech's chairman emphasized the company's commitment to redefining product boundaries through nano-technology across various sectors, including medical and sports fields, and aims to enhance the "technology + scenario" dual-driven strategy for broader applications [2]

Financial Performance - The company reported a total revenue of 229 million yuan for the first half of 2025, representing a year-on-year increase of 6.95% [1] - The net profit attributable to the parent company reached 16.71 million yuan, up 7.74% year-on-year [1] - In Q2 2025, total revenue was 124 million yuan, with a year-on-year growth of 2.32% [1] - The gross margin improved to 54.55%, an increase of 3.4% year-on-year, while the net margin rose to 7.31%, up 0.74% year-on-year [1] Key Financial Ratios - The company’s total expenses (selling, administrative, and financial) amounted to 67.02 million yuan, accounting for 29.3% of revenue, which is an increase of 8.03% year-on-year [1] - The cash flow per share increased significantly by 66.67% to 0.06 yuan [1] - The company’s return on invested capital (ROIC) was reported at 2.11%, indicating a relatively weak capital return [3] Market and Business Insights - The company’s performance is primarily driven by research and development, focusing on new technologies and market demands [3] - The company has seen a significant increase in cash assets, with cash holdings rising to 238 million yuan, a 23.29% increase year-on-year [1] - The company is actively exploring new markets and customer opportunities, particularly in emerging fields such as healthcare and automotive [4] Fund Holdings - The largest fund holding the company’s shares is the Southern Zhihong Mixed A fund, which increased its holdings to 387,600 shares [4] - The fund has shown a strong performance, with a 42.19% increase over the past year [4]