Report Summary 1. Investment Rating The report does not mention the industry investment rating. 2. Core View The short - term increase in cotton prices is significant, and it is advisable to wait for an adjustment. The market is currently in a state where supply and demand are both increasing, and news stimuli are needed to break the balance [3][4]. 3. Summary by Relevant Contents Market Performance - Last week, both domestic and international cotton prices fluctuated upwards, basically recovering the losses at the end of July. ICE cotton rebounded significantly after the USDA's August supply - demand report lowered the US cotton production and inventory. Zhengzhou cotton also rose after the 90 - day extension of the US - China tariff exemption period [4][5][9]. - The 1 - 5 spread of cotton futures first consolidated and then tended to strengthen. The futures price rebounded rapidly, and the basis weakened significantly [11][12][15]. Supply and Demand Analysis - In the August supply - demand report, the USDA predicted a global cotton supply - demand imbalance. The US cotton production was significantly lowered, while China's cotton production was raised as expected. The consumption in China and India showed an increase - decrease pattern, and the global cotton supply - demand was on the verge of balance [19]. - As of August 7, 2025, the national new cotton picking, processing, and sales rates were at high levels. The sales rate was 97.7%, an increase of 6.7 percentage points year - on - year and 8.4 percentage points compared to the average of the past four years [21][22]. - In June 2025, China's cotton import volume was 27,820 tons, a month - on - month decrease of 22.42% and a year - on - year decrease of 82.09%. The "rush to export" behavior in the textile and garment industry from April to June overdrew some orders, reducing the cotton import demand [23][24]. - In June 2025, China's cotton yarn import volume was about 109,000 tons. Although it ended the three - month consecutive month - on - month decline, the annual import demand was still in a contraction channel, with the cumulative import volume from January to June decreasing by 13.61% year - on - year [26][27]. Industry Operation - In July 2025, the cloth production was 2.7 billion meters, a year - on - year increase of 6.8% and a month - on - month decrease of 3.5%. It is expected that the production from July to August will remain weak, and the month - on - month decline may expand to 3% - 5% [32]. - In June 2025, textile exports were 12.048 billion US dollars, a year - on - year decrease of 1.6%. Clothing exports were 15.267 billion US dollars, a year - on - year increase of 1.1%. The retail sales of domestic clothing in June increased by 2.8% year - on - year [34][35][39]. Inventory and Operation of Enterprises - In July 2025, China's cotton commercial inventory was at a four - year low, while the industrial inventory was increasing. The commercial inventory was 2.1898 million tons, a year - on - year decrease of 588,400 tons, and the industrial inventory was 898,400 tons, a year - on - year increase of 91,400 tons [41][42]. - Spinning mills mainly digested cotton inventory, and the cotton yarn inventory decreased for two consecutive weeks. The opening rate of Chinese cotton spinning mills began to pick up, while the opening rates of Vietnamese and Indian spinning mills were at low levels [44][46][47]. - The spinning profit of domestic spinning mills was stable. The cotton yarn inventory of grey fabric mills continued to replenish, and the inventory of imported yarn at ports rebounded [56][57][59]. Fund Position By August 5, the fund's cotton position was a net short position of 55,882 lots, indicating that the fund continued to increase short positions before the USDA report [64].

Group 1 - The core viewpoint of the news highlights the growth and production statistics of the non-woven fabric industry in China, with a specific focus on the projected production figures for 2025 [1][3] - According to the National Bureau of Statistics, the fabric production in China is expected to reach 2.78 billion meters in June 2025, reflecting a year-on-year growth of 0.4% [1] - The cumulative fabric production in China for the first half of 2025 is reported to be 15.37 billion meters [1] Group 2 - The companies mentioned in the news include Huamao Co., Ltd. (000850), Xin'ao Co., Ltd. (603889), Huafu Fashion (002042), Fuchun Dyeing and Weaving (605189), Jinchun Co., Ltd. (300877), Yunzhongma (603130), ST Guiren (603555), Gelisi (603808), Hangmin Co., Ltd. (600987), and Meierya (600107) [1] - The report referenced is the "2025-2031 China Non-Woven Fabric Industry Market Deep Analysis and Future Trend Forecast Report" published by Zhiyan Consulting [1][2]

Core Insights - The New Fourth Army's Seventh Division was a remarkable military unit during the Anti-Japanese War, known for its ability to win battles, generate resources, and support other units while being self-sufficient [1][9] - Initially, the Seventh Division faced severe resource shortages, struggling to provide basic necessities for its soldiers, but eventually transformed its situation through innovative economic strategies [3][5] Historical Context - The origins of the Seventh Division trace back to 1937 when the Red Army guerrilla forces in the south were reorganized into the New Fourth Army, facing oppression from Chiang Kai-shek [3] - The division was nearly destroyed after the Wan'an Incident, but leaders Zhang Dingcheng and Zeng Xisheng managed to regroup and form the foundation of the Seventh Division [3] Economic Strategies - Economic experts Cai Hui and Ye Jinming proposed that the division engage in trade to sustain itself, leveraging the rich agricultural resources of the Jiangnan region [3][5] - The division initiated grain trade, disrupting enemy supply lines and attracting merchants from major cities, which led to the establishment of a bustling black market [5] Resource Accumulation - The Seventh Division not only traded with local merchants but also engaged in high-priced transactions with Japanese and puppet forces, acquiring essential military supplies and resources [5][7] - The establishment of the "Wanjiang Trade Bureau" and the issuance of "Dajiang Currency" created a local financial system, allowing the division to achieve economic self-sufficiency [5] Operational Challenges - The division's success came at a high cost, with constant threats from enemy forces and the risk of severe punishment for those involved in underground financial activities [7] - Each transaction was fraught with danger, highlighting the sacrifices made to achieve economic stability [7] Legacy - After the war, the Seventh Division's accumulated wealth and experience laid the groundwork for the liberation of East China, demonstrating their dual role as both warriors and builders [9] - The story of the Seventh Division serves as a beacon of hope, illustrating the importance of resilience and adaptability in challenging times [9]

Core Insights - The Ministry of Industry and Information Technology reported the textile industry's performance for the first half of the year, indicating a mixed outlook with growth in production but declines in revenue and profit [1] Group 1: Industry Performance - The industrial added value of large-scale textile enterprises increased by 3.1% year-on-year [1] - The total operating revenue for the textile industry was 22,716 billion yuan, showing a decline of 3.0% year-on-year [1] - Total profit for the industry reached 672 billion yuan, reflecting a decrease of 9.4% year-on-year [1] Group 2: Production Metrics - Production volumes for yarn, chemical fiber, and clothing increased by 5.0%, 4.9%, and 0.3% year-on-year, respectively [1] - The production volume of fabric remained unchanged compared to the previous year [1] Group 3: Retail and Export Data - The total retail sales of consumer goods for the first half of the year reached 99,219 billion yuan, with a year-on-year growth of 6.1% [1] - Retail sales of clothing, shoes, hats, and textile products increased by 3.1% year-on-year [1] - Cumulative textile and clothing exports amounted to 144 billion USD, marking a year-on-year increase of 0.8% [1] - Textile exports were 70.5 billion USD, up by 1.8% year-on-year, while clothing exports were 73.5 billion USD, showing a slight decline of 0.2% [1]

Group 1 - The industrial added value of large-scale textile enterprises increased by 3.4% year-on-year from January to May [1] - The total revenue of these enterprises was 1,887.5 billion yuan, showing a decline of 1.7% year-on-year [1] - The total profit amounted to 52.4 billion yuan, reflecting a decrease of 7.6% year-on-year [1] Group 2 - Production of yarn, fabric, chemical fiber, and clothing increased by 4.9%, 0.2%, 5.5%, and 0.3% year-on-year respectively [1] - The retail sales of consumer goods in the country reached 8,074.9 billion yuan, with a year-on-year growth of 6.3% [1] - Retail sales of clothing, shoes, hats, and textile products increased by 3.3% year-on-year [1] Group 3 - The cumulative export of textiles and clothing reached 116.7 billion USD, marking a year-on-year increase of 1.0% [1] - Textile exports were 58.5 billion USD, showing a growth of 2.5% year-on-year [1] - Clothing exports totaled 58.2 billion USD, which is a decline of 0.5% year-on-year [1]

Industry Overview - The Ministry of Industry and Information Technology reported that from January to April 2025, the industrial added value of large-scale textile enterprises increased by 4.2% year-on-year [1] - The total operating revenue for the same period was 1,494.6 billion yuan, reflecting a year-on-year decrease of 0.5% [1] - The total profit for these enterprises was 40.7 billion yuan, which represents a year-on-year decline of 5.0% [1] Production Metrics - The production volume of clothing from large-scale enterprises decreased by 0.4% year-on-year [1] - The production of yarn, fabric, and chemical fibers saw year-on-year increases of 7.0%, 2.3%, and 5.7% respectively [1]