XINGYE TECH.(SZ:002674)2022-12-08 06:42Group 1: Company Overview - The company specializes in processing natural cowhide leather, primarily used in shoes and bags [2] - It is the only company in the A-share market engaged in natural cowhide processing, with 60% of raw materials imported [2] - The company has shifted from domestic sales to international collaborations with well-known brands [2] Group 2: Industry Context - The leather industry is experiencing a reduction in supply due to the shutdown of many small enterprises following new environmental regulations [2] - In Fujian, tanneries producing less than 300,000 hides annually have been eliminated, while in Jiangsu, those below 800,000 hides have also been shut down [2] - The current industry concentration is low, with many small and medium-sized enterprises dominating the market [4] Group 3: Pricing and Sales Strategy - The company’s pricing strategy is based on cost-plus, considering market supply and demand [3] - The sales volume of bag leather accounted for approximately 10% of total sales in 2013 [4] - The company’s peak sales season is in the second half of the year [5] Group 4: Raw Material and Supply Chain - The price of raw materials shows seasonal fluctuations, with summer slaughtering leading to increased supply and lower prices [5] - Foreign raw material prices are generally lower per square foot due to industrialized farming practices [4] - The company is currently collaborating with Italian artisans for product development and promotion [3] Group 5: Market Trends - The rise in synthetic leather sales is noted, but it is not expected to fully replace genuine leather due to brand integrity concerns among well-known companies [5] - The company is considering potential overseas acquisitions or factory setups, contingent on its operational readiness [3]