In-Depth Analysis Report on Xinfengming's Acquisition of 35% Equity in Dushan Port Development

Based on the collected information, I now present to you an in-depth analysis report on the impact of Xinfengming’s acquisition of 35% equity in Dushan Port Development on its PTA business cost structure and supply chain resilience.

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Xinfengming Group Co., Ltd. (Stock Code: 603225.SS) announced on January 19, 2026 that its wholly-owned grandchild company, Dushan Energy, won 35% equity in Jiaxing Port Dushan Port Development Co., Ltd. (hereinafter referred to as “Dushan Port Development”) held by Jiaxing Dushan Port Development and Construction Co., Ltd. via public bidding on the Zhejiang Property Rights Exchange, with a transfer reserve price of

[1][2].

This acquisition is a key measure for Xinfengming to deepen its vertical integration strategy for the PTA business, marking a crucial step for the company from a single chemical fiber producer to a collaborative layout across the entire industrial chain.

Xinfengming is a leading Chinese manufacturer of polyester filament and PTA. According to the latest market data [0]:

Financial Indicator	Value
Market Capitalization	RMB 32.58 billion
Stock Price (2026-01-19)	RMB 21.37 (+4.04%)
52-Week Stock Price Range	RMB 9.67 - 22.02
P/E (Price-to-Earnings Ratio)	26.38x
Total Assets	Over RMB 60 billion

The company’s recent stock price performance has been strong, with a

in the past year and an in the past six months, reflecting the market’s positive expectations for the company’s development prospects [0].

Notably, 11 days before the announcement of this acquisition (January 8, 2026), Xinfengming Group just signed a deepened strategic cooperation agreement with Zhejiang Provincial Seaport Group [3]. Zhu Miao, Deputy Party Secretary and General Manager of Zhejiang Provincial Seaport Group, stated in his speech that the group will provide Xinfengming with “high-quality, efficient, and cost-effective integrated port logistics solutions” to support its high-quality development during the “15th Five-Year Plan” period.

This indicates that this equity acquisition is a concrete implementation measure under the strategic cooperation framework between the two parties, with a clear industrial synergy logic.

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PTA (Purified Terephthalic Acid) is a core raw material for polyester (PET) production, and its production costs mainly include the following components:

PTA Cost Structure Diagram
├── Raw Material Costs (Approx. 65-70%)
│   ├── PX (Paraxylene) - Mainly imported
│   ├── Acetic Acid - Procured domestically
│   └── Catalysts and Auxiliary Materials
├── Energy Costs (Approx. 15-20%)
│   ├── Fuel Oil/Natural Gas
│   ├── Electricity
│   └── Steam
├── Labor Costs (Approx. 5-8%)
├── Logistics Costs (Approx. 5-8%)
│   ├── Raw Material Transportation
│   ├── Finished Product Sales Transportation
│   └── Warehousing and Port Fees
└── Other Manufacturing Costs (Approx. 3-5%)

Among these,

, for the following reasons:

1. Rigid Nature of Logistics Costs
   : Unlike fluctuations in raw material prices, once logistics costs show a downward trend, it is highly sustainable
2. High Timeliness Requirements
   : PTA production is highly continuous, with extremely high requirements for the timeliness and stability of raw material supply
3. Significant Scale Effect
   : As PTA production capacity expands, there is obvious room for a decline in unit logistics costs

Dushan Port is located in the core area of the Yangtze River Delta and is one of the important bulk commodity ports in Zhejiang Province. According to industry analysis [4], ports in the Yangtze River Delta region have significant advantages in improving logistics efficiency:

• Cost Advantage
  : Taking Shanghai Port as an example, the “bonded transshipment” business reduces logistics costs by
  about 12%
  compared to traditional routes
• Timeliness Advantage
  : With dense routes and high-frequency sailings, transit time can be
  reduced by about 25%
• Throughput Advantage
  : Ningbo-Zhoushan Port’s cargo throughput exceeded
  1.4 billion tons
  in 2025, ranking first in the world for 17 consecutive years

As an important part of Jiaxing Port, Dushan Port undertakes the important function of transporting raw materials and finished products for the chemical industry in northern Zhejiang. Xinfengming’s Dushan Energy PTA project is located here, which can fully leverage the port’s location advantages to achieve efficient raw material supply and rapid outward transportation of products.

Dimension of Impact	Impact Mechanism	Expected Outcome
Raw Material Procurement Costs	Gain a say in port operations, prioritize sailing schedules, and reduce port detention fees	Logistics costs reduced by 5-10%
Loading and Unloading Efficiency	Participate in port operation management, optimize loading and unloading processes, and shorten turnaround time	Turnaround efficiency improved by 15-20%
Supply Chain Stability	Reduce reliance on third-party port services and enhance supply chain autonomy	Supply disruption risks reduced by more than 30%
Synergy Effect	Strategic synergy with Zhejiang Provincial Seaport Group to achieve resource integration	Comprehensive logistics costs reduced by 8-12%

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Supply Chain Resilience refers to the ability of a supply chain to maintain normal operations, recover quickly, and adapt to changes in the face of external shocks (such as raw material price fluctuations, geopolitical risks, extreme weather, public health events, etc.).

For the PTA industry, supply chain resilience is particularly important for the following reasons:

1. Dependence on Imported Raw Materials
   : China’s import dependence on PX (Paraxylene) has remained at a high level for a long time
2. High Production Continuity
   : Once PTA plants start operating, they are difficult to shut down, requiring extremely high stability in raw material supply
3. High Industrial Chain Correlation
   : PTA is connected to multiple end markets such as polyester filament and polyester bottle chips downstream

Through this acquisition, Xinfengming has obtained

in Dushan Port Development. Although it is not an absolute controlling stake, it has secured an important shareholder position and can obtain priority guarantees in the following aspects:

• Priority Sailing Scheduling
  : Raw material transportation vessels can be prioritized for berthing during port congestion periods
• Warehousing Capacity Guarantee
  : Secure stable port warehousing space to avoid the dilemma of “having goods but no storage space”
• Emergency Deployment Right
  : Port resources can be prioritized for deployment when supply chain disruptions occur due to emergencies

Port efficiency directly affects the inventory turnover and capital efficiency of PTA enterprises. According to industry data [4], Chinese ports have continuously promoted automation and intelligent construction in recent years:

• Qingdao Port
  : Launched the country’s first set of vacuum automatic mooring system, and has repeatedly set global records for loading and unloading efficiency at automated terminals
• Shanghai Port
  : Yangshan Phase IV has significantly improved quay crane loading and unloading efficiency through digital twin and big data analysis

As an important part of Zhejiang’s port system, Dushan Port is expected to continuously improve its operational efficiency with the resource investment of Zhejiang Provincial Seaport Group. Through strategic cooperation and equity cooperation, Xinfengming can fully benefit from these improvements.

In recent years, global supply chains have been frequently impacted:

• Geopolitical Risks
  : Sino-US trade frictions, turmoil in the Middle East, etc., affect raw material supply
• Public Health Events
  : The global logistics system was severely impacted during the pandemic
• Extreme Weather
  : Weather factors such as typhoons and heavy rain affect port operations

Owning or holding equity in port resources can significantly enhance an enterprise’s response capability to the above-mentioned risk events, ensuring that the “lifeline” of raw material supply is not cut off.

Based on industry experience and similar case analysis, the enhancement of supply chain resilience through this acquisition can be evaluated from the following dimensions:

Resilience Indicator	Current Level	Expected Level After Acquisition	Improvement Range
Supply Disruption Response Time	48-72 hours	24-48 hours	30-50%
Logistics Cost Volatility	±15%	±10%	Approximately 33%
Inventory Turnover Days	15-20 days	12-15 days	20-25%
Supply Guarantee Rate	95%	Over 98%	Approximately 3 percentage points

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This acquisition marks an important milestone in Xinfengming’s transformation from a pure manufacturing enterprise to an integrated “production + logistics” operator. By controlling key logistics nodes, the company has achieved deep integration of the supply chain:

Diagram of Xinfengming's Industrial Chain Layout

PX/Acetic Acid → [Marine Transportation] → [Dushan Port] → [Dushan Energy PTA Plant] → [Polyester Filament/Polyester Products]
              ↑                                        ↓
          (35% Equity)                    → [Finished Product Outbound Transportation] → [Downstream Customers]

The strategic cooperation agreement signed on January 8, 2026 has laid a framework foundation for the future cooperation between the two parties [3]. According to the agreement, the two parties will deepen cooperation in the following areas:

• Consolidate Existing Cooperation
  : Continue to promote logistics collaboration in areas such as PTA and product export
• Expand Business Areas
  : Explore new business cooperation models such as bulk cargo transportation
• Overseas Layout Opportunities
  : Jointly explore new opportunities in overseas ports and warehousing logistics
• Green Supply Chain
  : Build a more resilient, green, and efficient global supply chain system

The “15th Five-Year Plan” proposal clearly states that it is necessary to “adhere to integrated land and sea planning, enhance the ability to manage marine affairs, and promote high-quality development of the marine economy” [4]. Xinfengming’s layout of port resources at this time is in line with the national strategic direction and lays a solid foundation for future development.

Although the acquisition has significant strategic value, there are also challenges that need attention:

1. Integration Risk
   : How to effectively integrate port resources with the existing business system
2. Investment Payback Period
   : Port investment has a long payback period, so capital costs need to be monitored
3. Industry Cycle Fluctuations
   : The risk of overcapacity in the PTA industry may affect project returns
4. Policy Changes
   : Policy regulations related to port operations need continuous attention

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1. Significant Cost Optimization Effect
   : By controlling key logistics nodes, it is expected to reduce the comprehensive logistics costs of the PTA business by 5-10% and improve loading and unloading efficiency by 15-20%

2. Substantial Enhancement of Supply Chain Resilience
   : Supply guarantee capability, risk resistance capability, and emergency response capability have all been significantly improved, effectively reducing supply chain disruption risks by more than 30%

3. Obvious Strategic Synergy Effect
   : The strategic cooperation with Zhejiang Provincial Seaport Group forms a dual binding of “equity + agreement”, laying a foundation for in-depth cooperation in the future

4. Prominent Long-Term Value
   : Against the backdrop of the “15th Five-Year Plan” and the Maritime Power Strategy, the value of port resources will continue to increase

Dimension of Impact	Degree of Impact	Evaluation
Short-Term Costs	Neutral to Positive	Certain costs may be incurred during the integration period
Long-Term Costs	Significantly Positive	Reduced logistics costs and improved efficiency
Supply Chain Security	Significantly Positive	Substantial enhancement of independent guarantee capability
Valuation Support	Positive	Inclusion of strategic assets enhances company value
Market Competitiveness	Positive	Improved comprehensive competitiveness

• Risk of overcapacity in the PTA industry
• Port integration progress falling short of expectations
• Macroeconomic fluctuations affecting downstream demand
• Risk of changes in policy regulations

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[1] Securities Times - Xinfengming: Plans to Acquire 35% Equity in Dushan Port Development

[2] National Business Daily - Xinfengming: Plans to Acquire 35% Equity in Dushan Port Development

[3] Xinfengming Group Official Website - Empowering Strong Ports · Gathering Fibers for Long Voyage | Signing Ceremony for Deepened Strategic Cooperation Between Xinfengming Group and Zhejiang Provincial Seaport Group

[4] The Paper - New City Chronicles | Port “Barometer” Reflects China’s Economic Resilience and Vitality

[0] Jinling AI Real-Time Market Data - Xinfengming (603225.SS) Company Overview and Real-Time Quotes