Analysis of Business Relationship Between Fuerun Co., Ltd. and UNIQLO: Customer Concentration and Risk Diversification Strategies

Based on the information I have collected, I provide the following detailed analysis regarding the business relationship between Fuerun Co., Ltd. and UNIQLO:

(Hangzhou Fuerun Co., Ltd.) is a global eco-friendly fabric supplier with sustainable development at its core. Its main products are recycled fabrics, and it has submitted a registration application for an initial public offering (IPO) on the Main Board of the Shenzhen Stock Exchange[1][2].

Based on Fuerun Co., Ltd.'s prospectus and its response to the regulatory inquiry letter, the company’s business data related to UNIQLO is as follows:

Fuerun Co., Ltd.'s brand customers are highly concentrated, mainly including:

• H&M
  (Sweden) - Top supplier of recycled polyester-viscose blended fabrics
• UNIQLO
  (Japan) - Top supplier of recycled polyester-viscose blended fabrics
• GU
  (Sister brand of UNIQLO, Japan) - Top supplier of recycled fabrics
• ZARA (Spain)
• C&A (Netherlands)
• GAP (Banana Republic) (US)

Year	Revenue from Top Five Brand Customers (100 million RMB)	Share of Main Business Revenue
2022	13.86	79.60%
2023	11.47	76.20%
2024	13.13	72.81%
H1 2025	6.68	71.66%

• Cooperation Duration
  : Fuerun Co., Ltd. first collaborated with UNIQLO in 2015[3]
• Business Status
  : UNIQLO is part of Japan’s Fast Retailing Group, and Fuerun Co., Ltd. is its
  key supplier
  of recycled polyester-viscose blended fabrics
• Performance Fluctuation
  : Sales to UNIQLO dropped 25.53% year-on-year in 2023[1]
• Recovery in 2024
  : Alongside the performance growth of Fast Retailing Group, the overall sales of UNIQLO and GU saw significant growth[3]

Fiscal Year	Operating Revenue (100 million JPY)	Year-on-Year Growth
FY2022	23,011.22	-
FY2023	27,665.57	+20.2%
FY2024	31,038.36	+12.2%

As Fuerun Co., Ltd. has not separately disclosed the specific order amount data for UNIQLO in its prospectus (possibly due to commercial confidentiality), the above UNIQLO-related data is compiled based on public information. UNIQLO and GU are both part of Fast Retailing Group, and their data may be counted together or marked with codes in statistics.

Fuerun Co., Ltd. has a high degree of dependence on UNIQLO, but it is currently diversifying risks by expanding its customer base (such as strengthening collaborations with domestic brands like Peacebird and LILANZ) and building overseas production facilities (its Vietnam factory started small-batch production in June 2025)[1][2].

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[1] Sina Finance - “Fuerun Co., Ltd. Pursues IPO with Deep Ties to UNIQLO and H&M: The Wang Enwei Family Received Over 300 Million RMB in Dividends in a Year” (https://finance.sina.com.cn/jjxw/2026-01-17/doc-inhhqpee0010284.shtml)
[2] Sina Finance - “Fabric Supplier to ZARA and UNIQLO, Fuerun Co., Ltd. Achieves Annual Revenue Exceeding 1.8 Billion RMB” (https://finance.sina.com.cn/jjxw/2026-01-09/doc-inhftipq1391508.shtml)
[3] Shenzhen Stock Exchange - “Response Report to the Second Round of Regulatory Inquiry Letter Regarding the IPO Application Documents of Hangzhou Fuerun Co., Ltd. for Listing on the Main Board” (http://reportdocs.static.szse.cn/UpFiles/rasinfodisc1/202511/RAS_202511_2015001C98CA70DFBC4C1B81B6C3ED30D20E09.pdf)