Core Viewpoint - The article highlights the significant progress of Fujian Hengxin Green Technology Co., Ltd.'s green chemical recycling project, which is the world's first large-scale chemical recycling project for Nylon 6, expected to be operational by Q1 2026 [2][4]. Project Details: Technological Innovation and Industrial Value - The total investment for the Lianjiang Hengxin green chemical recycling project is 379 million yuan, with a domestic equipment localization rate of 90% [4]. - This project utilizes proprietary nylon chemical recycling technology, transforming waste textiles like fishing nets and fabrics into high-quality regenerated polyamide 6 chips through depolymerization, purification, and polymerization processes [4]. - The project aims for an annual production capacity of 7,000 tons and will establish a complete closed-loop recycling system for polyamide 6, significantly reducing carbon emissions by 80% compared to traditional physical recycling methods [4]. Global Regenerated Nylon Market Overview - According to Textile Exchange data, the global regenerated nylon market is still in its infancy, with a nylon fiber production of approximately 6.21 million tons in 2022, of which only 130,000 tons are regenerated nylon, resulting in a penetration rate of just 2.02% [5]. - If the penetration rate of regenerated nylon reaches that of polyester, the potential demand could rise to 920,000 tons, indicating a vast market opportunity [5]. Current Market Status - In 2024, the global regenerated nylon production is projected to be around 200,000 tons, accounting for approximately 2.3% of total nylon production [6]. - The growth of the regenerated nylon market has been slow due to technical challenges, raw material quality and availability, and investment needs [6]. - There are currently few global suppliers of regenerated nylon, with a particularly scarce number of suppliers using chemical recycling methods, including only a handful of certified companies [6].

Investment Rating - The report does not explicitly state an investment rating for the textile and apparel industry or the specific company being analyzed [1]. Core Insights - The company has established a comprehensive industrial chain in the nylon sector, extending from recycling to weaving and dyeing, with main products including nylon filament, grey fabric, and functional finished fabrics [18][19]. - The Jiangsu Huai'an production base is progressing with a "green multifunctional nylon new material integration project," which includes a 100,000-ton differentiated recycled nylon filament project and a 60,000-ton PA66 differentiated nylon filament project, with good benefits expected in 2024 [20]. - The company’s recycled nylon products utilize waste materials from the production process and post-consumer fishing nets, employing a chemical recycling method that aligns with sustainable development goals and has gained recognition from downstream brands [22]. - The company’s nylon 66 products are widely used in various sectors, including leisure sports, yoga, and children's clothing, with a significant increase in customer numbers and sales in recent years [23]. - The company aims to strengthen its integrated nylon industrial chain, focusing on high-quality development through differentiation, brand enhancement, and sustainability, aspiring to become a leader in global green multifunctional nylon and high-end functional fabrics [24]. Summary by Sections 1. Company Product System and Industrial Layout - The company has developed an integrated industrial chain in the nylon industry, focusing on recycling, regeneration, polymerization, spinning, and weaving [18]. 2. Jiangsu Huai'an Production Base Progress - The production base is advancing with projects aimed at producing differentiated nylon filaments, with expected benefits in 2024 [20]. 3. Recycled Nylon Product Situation - The company’s recycled nylon is produced from various waste materials, promoting a closed-loop recycling method that is environmentally friendly [22]. 4. Nylon 66 Application Areas and Customer Development - The company has seen significant growth in its nylon 66 customer base and sales, with products recognized for their quality [23]. 5. Future Development Strategy - The company plans to enhance its competitive edge in differentiated products and aims for high-quality growth through sustainability and brand development [24].