Core Viewpoint - Bailong Oriental is gradually emerging from the industry's "de-inventory" shadow, with significant improvements in its financial performance and operational efficiency [1][5]. Financial Performance - For the first half of 2025, the company expects a net profit of 350 million to 410 million yuan, representing a year-on-year increase of 50.21% to 75.97%. The non-net profit is projected to be 323 million to 383 million yuan, with a year-on-year growth of 201.87% to 257.94% [2][3]. - In 2024, Bailong Oriental achieved an operating income of 7.941 billion yuan, a year-on-year increase of 14.86%, while net profit decreased by 18.62% to 410 million yuan. However, the non-net profit surged by 1128.03% to 220 million yuan [3]. Market and Production Capacity - The company has a strong order backlog in both domestic and overseas markets, leading to improved overall capacity utilization and increased main business profits [2][3]. - Bailong Oriental is a leading producer of colored spun yarn in China, with its Vietnamese subsidiary accounting for approximately 77% of its total production capacity, which has reached 1.26 million spindles [1][6]. Raw Material Dependency and Risk Management - Raw materials constitute about 70% of the company's operating costs, with cotton being the most significant component. The company has adapted its procurement strategy based on domestic and international production layouts [3]. - Bailong Oriental has engaged in futures trading to hedge against raw material price fluctuations, which has led to significant variations in investment income. In 2022, the company earned 777 million yuan from cotton futures, but this dropped to 127 million yuan in 2023 and further decreased to 76.71 million yuan in 2024 [4][5]. International Expansion and Client Base - Since 2013, Bailong Oriental has been expanding its overseas production capacity, focusing on a "small batch, multiple varieties, and quick response" business model. The company serves both domestic brands like Li Ning and international brands such as Nike and Adidas [6][7]. - In 2024, the company reported overseas revenue of 5.425 billion yuan, accounting for 68.32% of total revenue, with the Vietnamese subsidiary achieving a revenue of 5.997 billion yuan, a year-on-year increase of 13.03% [7].