Research Brief | Zhejiang Night Light Ming hosts three institutions including National Securities, with a production capacity of 84 million square meters of reflective materials

Basic Research Situation

On March 18, Zhejiang Night Bright Optoelectronic Technology Co., Ltd. (hereinafter referred to as “Zhejiang Night Bright”) received institutional investors through a targeted research and on-site visit format. Participating institutions included Guomin Securities, Weixing Capital, and Zhonghong Yongdao. The company’s Board Secretary Wang Zhongdong and Securities Affairs Representative Pan Linghong attended and communicated with investors.

Core Information of Investor Relations Activities

Core Content Interpretation of Research

Capacity Layout: 84 million square meters of reflective material capacity has been put into production, fundraising projects continue to advance

In response to investors’ concerns about capacity, the company stated that with the completion of the annual output of 20 million square meters of high-performance reflective materials technical transformation project, the designed capacity that has been built and put into production is approximately 84 million square meters of reflective materials and 7 million pieces of reflective clothing, which can meet current customer demands. At the same time, the company is advancing the construction of fundraising projects such as production line automation transformation and research and development center, and future capacity scale is expected to be further enhanced.

Core Competitiveness: Twenty years of deep cultivation has built six major manufacturing advantages, and international layout is steadily advancing

Regarding core competitive advantages, the company emphasized its more than twenty years of deep cultivation in the field of reflective materials, focusing on continuous research and development and technological innovation. By integrating key process control technology, digital manufacturing, and lean production, centralized production and one-time synthesis are achieved, simplifying coating and compounding processes, forming six major manufacturing advantages of “complete categories, large scale, stable quality, low cost, fast delivery, and excellent service.” Products can accurately match the diversified and customized demands in areas such as consumption and fashion, while also focusing on brand building, which has formed competitive barriers in the industry.

Regarding international layout, the company stated that it will steadily promote around core strategies while ensuring financial health.

Industry Trends: Four major directions lead development, environmental protection and customization become key focuses

When analyzing the future development trends of the reflective materials industry, the company pointed out that the manufacturing processes, equipment, and raw materials for reflective materials in China have gradually approached international advanced levels and are gradually replacing imported brands. Specific trends include:

• Improvement of product stability: Downstream customers have higher demands for quality stability and durability, requiring optimization of the matching degree of raw materials and processes, reducing waste rates, and improving indicators such as weather resistance and wash resistance;
• Research and development of environmentally friendly adhesives: Solvent-based adhesives have issues with waste gas and odor, while water-based or solvent-free adhesives will become the industry direction;
• Deepening product customization: Development towards decorative reflective fabrics and customized reflective labels, becoming more closely linked to downstream demands;
• Diversification of occupational safety needs: In addition to reflective performance, there is an increasing demand for flame resistance, light storage, and other functionalities, requiring the integration of new technologies to develop new products.

Export and Cost Response: Export focuses on three major regions, multiple measures to smooth the impact of raw material fluctuations

The company’s export revenue is primarily distributed in South Asia, Europe, and South America. Regarding the impact of rising prices of bulk materials, the company stated that this effect has a certain lag period, and existing inventory and safety stock can temporarily smooth price fluctuations; in the long term, costs will be transferred downstream through optimization of production processes, adjustment of procurement plans, and some product sales prices to actively respond to potential risks.

Zhejiang Night Bright stated that it will continue to focus on the main business of reflective materials, consolidating its industry position through technological innovation and capacity upgrades.

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