Taihua New Materials: China Merchants Securities investors visited our company for research on March 2nd

Securities Star News, March 3, 2026: Zhaohua New Materials (603055) announced that Liu Li and Tang Shengyang from China Merchants Securities conducted a research visit to our company on March 2, 2026.

The specific content is as follows:

Q: What is the demand situation for nylon fiber?

A: Nylon fiber features high strength, wear resistance, good elasticity, and easy dyeing. In recent years, with people’s pursuit of a healthy lifestyle, increased awareness of sports, and diversified consumer demands, the requirements for clothing functionality and comfort are continuously rising. The application fields of nylon fiber are expanding, which in turn drives the growth in demand for nylon fiber.

Q: What is the progress of the Vietnam project?

A: The Vietnam production base involves a total investment of no more than $100 million to build an integrated spinning and dyeing project with an annual capacity of 60 million meters of gray fabric. It is expected that production capacity will be gradually put into operation this year. After the Vietnam base is operational, it will better meet international customers’ needs for high quality, sustainability, and rapid response, enhancing the company’s brand influence and market coverage.

Q: What is the status of the company’s differentiated products?

A: The company adheres to a customer- and market-oriented approach, focusing on differentiation, functionality, and sustainable development. It insists on developing and promoting differentiated products such as nylon 66, recycled nylon, and functional nylon to enhance competitiveness. Sales of differentiated products are steadily increasing, continuously contributing to the company’s operating performance.

Q: What are the company’s plans for convertible bonds?

A: The company’s “Tai 21 Convertible Bond” is valid until December 28, 2027. The stock price is affected by various short-term factors. In the long term, the stock price reflects the company’s operating performance and intrinsic value. The company is confident in its long-term development. During the validity period of the convertible bonds, the company will continue to focus on management, enhance core competitiveness, and strive for better performance to reward investors. Whether the conversion price will be adjusted in the future will depend on external macroeconomic conditions, stock price trends, and the company’s fundamentals, with decisions made by the board of directors and promptly disclosed.

Q: What are the company’s future dividend plans?

A: The company highly values long-term investor returns and implements a continuous and stable dividend policy. Since listing, it has paid cash dividends every year, with the proportion of cash dividends exceeding 30% of the net profit attributable to shareholders each year, providing good returns to shareholders. In the future, the company will optimize its dividend and investor return plans based on actual operations, capital expenditure needs, and shareholder demands, sharing operational results with investors.

Taihua New Materials (603055) mainly focuses on R&D and production of nylon 6, nylon 66, and environmentally recycled nylon series products, as well as other chemical fiber products. It can customize and develop high-end functional fabrics for global customers, including eco-friendly, health-conscious, outdoor sports, and special protective materials.

According to the Q3 2025 report, the company’s main business revenue for the first three quarters was 4.703 billion yuan, down 9.29% year-over-year; net profit attributable to shareholders was 419 million yuan, down 32.3%; net profit after non-recurring gains and losses was 242 million yuan, down 53.74%. In Q3 2025 alone, the company’s revenue was 1.578 billion yuan, down 10.66% year-over-year; net profit attributable to shareholders was 93.699 million yuan, down 51.86%; net profit after non-recurring gains and losses was 36.494 million yuan, down 75.9%. The debt ratio is 54.71%, investment income is 3.6446 million yuan, financial expenses are 1.01 billion yuan, and gross profit margin is 20.93%.

In the past 90 days, two institutions have given buy ratings; the average target price from institutions in the past 90 days is 12.56 yuan.

Detailed profit forecast information:

Margin financing and securities lending data show that in the past 3 months, net financing inflow was 6.2306 million yuan, with an increase in financing balance; net securities lending inflow was 267,500 yuan, with an increase in securities lending balance.

The above content is compiled from public information by Securities Star, generated by AI algorithms (Network Credit Calculation No. 310104345710301240019), and does not constitute investment advice.