Source: China Securities Journal - CSRC Website
● Reporter of this newspaper, Meng Peijia
From quick-drying towels to automotive seat covers, from high-end dust-free cleaning cloths to suede used in the fashion industry, these products with vastly different uses in life all originate from the same underlying material—ultrafine composite fiber. "In the trillion-scale textile and apparel industry, ultrafine composite fiber is just a small track, yet it contains broad potential uses," Chairman of Jujie Microfiber, Zhong Hongtian, said in a recent interview with China Securities Journal.
Jujie Microfiber positions its mission as "Materials Weave a Better Life." "Our vision is not only to achieve commercial success but also to create long-term value for customers, society, and the environment through innovation and application of new textile materials," Zhong said.
Entering the Supply System of Well-Known Brands
As early as the 1990s, Jujie Microfiber, still in its startup phase, had ventured into ultrafine composite fibers. "At that time, there was a high-end fabric on the market called peach skin velvet, which had a very good texture and was basically imported. We managed to produce a batch of finished products by making yarn at our factory, weaving, and then sending them to different manufacturers for dyeing and brushing," Zhong told reporters.
However, at that time, this peach skin velvet lacked a consumer market in China. It wasn't until 1997 when Jujie Microfiber participated in an exhibition in Guangzhou and, by chance, provided a customer with a batch of samples. The peach skin velvet cotton coat made by the customer became a hit, earning the company its first pot of gold in the field of ultrafine composite fibers. "Reviewing our success at that time, on one hand, the product's performance was relatively leading; on the other hand, we innovatively introduced color cards for customers to choose from, meeting their needs to develop diversified products," Zhong explained. From then on, the company established a deep-rooted development gene—emphasis on technology and profound insight into consumer demand.
"In fierce market competition, we cannot win by imitating competitors; we must endow our products with more vitality," Zhong further explained. This vitality comes from excellent quality, attractive design, and special functions that meet people's needs, thereby creating products with unique value and connotation. "This requires the whole company to understand and practice our philosophy from a systematic and strategic level."
Subsequently, whether becoming an important global partner of Decathlon, helping H&M solve a batch of fabric needs and becoming its important supplier, or being rated first in a blind selection sample sent by a European automaker, similar stories have been played out again and again at Jujie Microfiber. Today, the company has established long-term cooperative relationships with several well-known clothing and home brands. New products such as impregnated fabrics have also entered the supply chain system of globally renowned consumer electronics brands and some automotive brands, forming sales. "We no longer define ourselves as fabric manufacturers, but as integrated service providers that can integrate industry knowledge," Zhong said.
Continuous Expansion of Product Types
Ultrafine composite fiber is a small track in the textile and apparel industry. Although the volume is not high, Zhong is confident about the future development of this field. "The non-standardized characteristics of ultrafine composite fibers at the application end allow us to build differentiated advantages, form our competitive barriers, and extend to new application scenarios," he said.
From a performance perspective, Jujie Microfiber has grown steadily in recent years, with revenue and net profit increasing year by year since 2020. In 2023, the company achieved a business income of 685 million yuan, a year-on-year increase of 13.15%; the net profit attributable to the parent was 74.4361 million yuan, a year-on-year increase of 102.53%.
From a product perspective, while deepening its basic plate in clothing fabrics, Jujie Microfiber has gradually expanded into the fields of consumer electronics, new energy vehicles, and industrial fiber materials, gradually forming major categories of products such as ultrafine fiber manufactured products, ultrafine fiber leather-like fabrics, ultrafine fiber functional fabrics, ultrafine fiber dust-free clean products, and other industrial fiber materials.