1. Report Summary - Report industry: Textile and Apparel [2] - Research object: Furui Co., Ltd. [17] - Research date: May 15, 2025 [17] - Company representatives: General Manager Xiao Maochang, Chief Accountant Lü Yaomei, and Board Secretary Peng Shiqiang [17] - Research institutions: Investor online questions, etc. [2] 2. Core Views - The company adheres to the global trade strategy, actively seeks overseas market opportunities, and is exploring countries in Southeast Asia and Africa for potential overseas factories [24][31] - The company is actively expanding non - US overseas markets, and the reduction of tariffs is expected to have a positive impact on its market competitiveness and profitability [24][26] - The Honggui anode material project is in the debugging process, and the new energy project had a monthly average shipment of about 550 tons from January to April [26][33] - The company's subsidiary, Furui Xuanwei, has a monthly average shipment of about 2000 tons of coatings and is actively expanding customers [28][31] - The company is actively handling military - related certificates and China Classification Society (CCS) certification for its coating business [24][29] 3. Summary by Directory 3.1 Research Basic Situation - The research object is Furui Co., Ltd., belonging to the textile and apparel industry. The reception time was on May 15, 2025, and the company's general manager, chief accountant, and board secretary received the research [17] 3.2 Detailed Research Institutions - The reception objects include investors' online questions and other types [20] 3.3 Research Institutions' Proportion - No relevant content 3.4 Main Content Data - **Overseas Base and Military Certificate**: The company is exploring overseas markets and is actively handling the military certificate for Furui Xuanwei [24] - **Non - US Overseas Orders**: The company is actively expanding non - US overseas markets [24] - **Stock Performance and Suggestions**: The company thanks for the suggestion to pay more attention to online community comments [24] - **Tariff Impact**: The reduction of tariffs is expected to have a positive impact on the company's market competitiveness and profitability [26] - **Project Progress**: The Honggui anode material project is in the debugging process [26][33] - **Coating Business**: Furui Xuanwei has a monthly average shipment of about 2000 tons and is actively expanding customers. It is also handling CCS certification and has no plans to apply for DNV and ABS certifications for now [27][28][29] - **Equity Acquisition**: The acquisition by Weifang Urban Construction Investment has no progress for now [28] - **New Energy Project**: The capacity utilization rate of the new energy project is about 60%, and the monthly average shipment from January to April was about 550 tons [30][33] - **Subsidy Issues**: The company is actively communicating with the government about heating subsidies and pipe network subsidies. The audited heating cost subsidy is 270 million yuan, and the unaudited is 50 million yuan, totaling 320 million yuan [31][34][41] - **Brand Endorsement**: The endorsement contract of Jia Nailiang has expired [35] - **Employee Stock Ownership**: The company has no plans for employee stock ownership for now [36] - **Order Recovery**: The company is striving to recover original customer orders and expand new markets [40]

Group 1: Company Strategy and Market Expansion - The company is actively seeking overseas market opportunities and accelerating its global trade strategy in response to increasing market competition and tariff barriers [1] - The company is currently exploring Southeast Asia and parts of Africa for potential overseas factory locations [5] - The company is expanding its non-U.S. market orders in light of tariff impacts [1] Group 2: Financial Performance and Projections - The company anticipates a positive impact on its second-quarter profits due to the recent tariff reductions, with U.S. customers resuming orders [2] - The company’s monthly average shipment for its coating business is approximately 2,000 tons [5] - The company’s new energy project has a capacity utilization rate of around 60% [5] Group 3: Shareholder and Market Perception - The company is implementing significant share buybacks and high dividends to maintain its image in the secondary market [5] - The company is addressing concerns regarding major shareholder equity pledges and is actively working to resolve judicial freeze issues [5] - The company has received a total of 320 million yuan in heating cost subsidies, with 270 million yuan audited and 50 million yuan unaudited [6] Group 4: Product Development and Certifications - The company is in the process of obtaining military and maritime certifications, with ongoing efforts to secure the China Classification Society certification [5] - The company’s silicon negative electrode material project is currently in the debugging phase [2] - The company has not yet applied for certifications from the Norwegian and American classification societies [5]

Group 1: Company Operations and Performance - The UK factory's annual capacity utilization rate is increasing, and it is expected to improve its operating conditions in 2025 [1][3] - The Malaysian factory is currently in the construction phase, with future investments dependent on order conditions [1][3] - The company has achieved profitability in the first quarter of 2025 due to exchange gains from the UK subsidiary [2][3] Group 2: Market and Strategic Outlook - The company does not currently plan any mergers or strategic partnerships to overcome market bottlenecks [1] - The company focuses on business expansion, R&D, and project construction to enhance value and protect shareholder interests [2] - The company anticipates steady growth across its business segments in 2025, particularly in plant protection, pharmaceuticals, and functional chemicals [2][3] Group 3: Financial Management and Shareholder Value - The company is implementing a valuation enhancement plan that includes operational improvements, investor relations management, and cash dividends [3] - Measures to manage market volatility and enhance shareholder returns include share buybacks and employee stock ownership plans [3] - The company aims to maintain compliance with environmental regulations while promoting sustainable development [4] Group 4: Environmental and Sustainability Initiatives - The company has been disclosing its sustainability management efforts for four consecutive years and is implementing a greenhouse gas inventory system [3][4] - Future plans include the gradual implementation of carbon reduction strategies to achieve carbon neutrality [4] - All projects are constructed in accordance with environmental protection requirements, ensuring compliance with national regulations [4]

Investment Rating - The report does not explicitly state an investment rating for the pesticide and veterinary drug industry [1]. Core Insights - The report highlights that Jiangsu Fengshan Group's pesticide business is the main source of revenue, while the new energy and advanced materials segments are still developing [19]. - Recent price increases for products such as chlorpyrifos and glyphosate are attributed to upstream raw material supply constraints, particularly due to environmental compliance issues affecting production [20][21]. - The company maintains strong relationships with suppliers, ensuring stable production despite raw material shortages [21]. - The overall capacity utilization is at historical highs, contributing to improved profit margins due to price increases [21]. - The agricultural industry is expected to stabilize in 2025, with a positive outlook for the pesticide sector as inventory levels normalize and demand increases [22][23]. - The company is optimistic about its performance in 2025, driven by strategic operational improvements and new product launches [24]. Summary by Sections 1. Basic Company Information - Jiangsu Fengshan Group operates in three main segments: pesticides, new energy electronic chemicals, and advanced materials [19]. 2. Key Issues Discussed - Recent price trends for chlorpyrifos and glyphosate, with chlorpyrifos priced around 4.1 and glyphosate at approximately 50,000 to 52,000 per ton, are discussed [20]. - The impact of raw material supply constraints on production and pricing is emphasized [20][21]. 3. Future Industry Outlook - The pesticide industry is cyclical, with expectations for recovery in 2025 as inventory levels are addressed and demand increases [22][23]. - The company is focused on enhancing its operational strategies to boost performance in the upcoming year [24].