Solid Core Business Foundation, Innovative New Materials Unlock Growth Potential

Key Points

A top-tier global aramid manufacturer with sizable capacity in meta-aramid, para-aramid and aramid paper; DuPont’s aramid business divestment opens a critical window for global market share expansion.

Aramid materials are being deployed into high-growth emerging sectors, including optical communication cable reinforcement and new energy battery separators.

Long-term upside relies on capturing overseas demand and advancing commercialization of innovative high-performance fibers to form a second growth curve.

Amid an external environment marked by cyclical industry headwinds alongside emerging opportunities in 2025, Taihe New Materials maintained consistent strategic focus. Guided by its development philosophy of expanding existing businesses, capturing new growth opportunities and extending the industrial chain, the company optimized its product mix and pushed forward technological upgrades and market development. During the reporting period, it posted operating revenue of RMB 3.595 billion and net profit attributable to parent shareholders of RMB 41.4649 million. For shareholder returns, the company distributed roughly RMB 16.9647 million in cash dividends for 2025.

Stable Core Operations, Strong Upside in Overseas Markets

The company operates across green chemicals, high-end textiles, high-performance fibers, new energy materials and other industrial segments. It is China’s first manufacturer capable of producing spandex, meta-aramid, para-aramid and aramid paper. At present, Taihe ranks second globally in production capacity for meta-aramid and aramid paper, third for para-aramid, and fifth for spandex. Its products serve key economic sectors including textiles, healthcare, information technology, transportation, environmental protection and emergency response. TAYHO owns brand portfolios including Newstar®, Tametar®, Taparan®, Metastar®,LITME®, Ecody®, SAFEBM® and Evmeta®. Its goods are sold in more than 50 countries and regions worldwide, supported by 138 registered trademarks. The firm has been featured on China Brand Value List and secured a spot among the Top 50 Most Valuable Textile & Apparel Brands, earning solid recognition at home and abroad.

Overseas revenue currently accounts for approximately 20% of total sales. DuPont, the global aramid leader, completed the divestiture of its aramid business in September 2025, reshaping the global competitive landscape. This creates a critical window for Taihe’s global expansion, with room to lift its international competitiveness and market share further.

Accelerated Commercialization of Innovative Materials, Forward Positioning in High-End New Material Tracks

Taihe New Materials adheres to a talent-driven, innovation-led growth strategy, actively exploring six emerging sectors: new energy vehicles, smart wearables, green manufacturing, information and communications, bio-based materials and green chemicals. Drawing on over 30 years of expertise in polymer material R&D and full-chain manufacturing, the company expands aramid applications into emerging industries and has built four core product matrices covering optical communications infrastructure, new energy batteries, safety protection and smart textiles.In optical communications, para-aramid used as cable reinforcement material stands to benefit significantly from AI computing infrastructure buildout and has entered mass supply. Within new energy, aramid-coated separators and insulating materials deliver safety solutions for power batteries and energy storage systems. In safety protection, the firm provides customized industrial offerings; its fire-resistant safety shelters create viable escape routes for high-rise building rescue operations. New products such as luminous fibers and fiber batteries are undergoing scenario verification to support R&D and commercial rollout of next-generation smart wearables.

Additionally, Taihe advances eco-friendly technologies including waste fiber recycling, green dyeing and bio-based fibers to facilitate low-carbon transformation across the textile sector, strengthening its long-term competitiveness in sustainable new materials.

Core Competitive Moats & Medium-to-Long-Term Investment Catalysts

Taihe New Materials builds its competitive advantages on three pillars: accumulated technical expertise, large-scale production capacity and global market reach.

On the technology front, as China’s first enterprise to realize mass production of spandex, meta-aramid, para-aramid and aramid paper, Taihe boasts more than three decades of polymer research and full industrial chain capabilities, forming a substantial technological moat.In terms of scale, its global capacity rankings — second for meta-aramid and aramid paper, third for para-aramid, fifth for spandex — drive unit cost advantages and bolster resilience amid industry cyclical swings.From a channel perspective, its products reach over 50 countries, with overseas sales making up around 20% of total revenue. Against the backdrop of DuPont’s aramid business divestment and reshaped global competition, Taihe is poised to capture additional overseas market share supported by cost-performance strengths and responsive customer service.

Over the medium and long term, the company centers its strategy on aramid materials and continues penetrating high-growth sectors such as optical communications, new energy, safety protection and smart wearables. Accelerated commercialization of new products is expected to foster a second growth curve and further entrench its leadership position within the new materials industry.

Key Investment Themes: Leading player across the full aramid industrial chain; promising overseas growth outlook; gradual revenue contribution from innovative new material product lines.