Mr. Chen reviewed the industry's journey from rapid growth to a supply-demand rebalancing, analyzed the current challenges and opportunities facing the market, and emphasized the importance of adhering to independent innovation and prioritizing quality to navigate through market cycles.

In 2020, Xinhuayuan successfully introduced its own lyocell yarn products into the Nantong home textile market, and has since been actively promoting lyocell products for many years. Mr. Chen refers to lyocell as the third-generation cellulose fiber, which possesses unique competitiveness due to its performance characteristics and eco-friendly concept. On the overseas front, demand for lyocell fiber and yarn is also growing rapidly in markets such as Bangladesh, Pakistan, Egypt, and India. In the China domestic market, the expanded application of circular knitting machines has significantly increased downstream consumption of lyocell fiber. If vortex spinning can achieve large-scale adoption of lyocell, the fiber is expected to remain in tight supply in the short term. Furthermore, the introduction of high-end differentiated products with features such as antibacterial and flame-retardant properties on the fiber side has, to some extent, reduced competition and sales pressure for conventional lyocell fiber. Mr. Chen firmly believes that the lyocell market has even greater room for development. As long as the industry adheres to quality first and pursues coordinated development, the lyocell sector is bound to have a brighter future.