Zhongxin Co., Ltd.: Preliminary Results Of Anti-Dumping And Countervailing Investigations Initiated By The US Department Of Commerce On Thermoformed Molded Fiber Products Originating From China And Vietnam

Zhongxin Corporation (603091. SH) announced that the US Department of Commerce has made preliminary rulings on anti-dumping measures against "thermoformed molded fiber products" from China and Vietnam. Zhongxin Corporation is a mandatory respondent with a tax rate of 470.63%, while the average tax rate for other non mandatory respondent companies is 345.84%. The tax rate for all unlisted Chinese companies is 477.97%.
The US Department of Commerce has announced the preliminary results of its anti subsidy investigation on thermoformed molded fiber products imported from China and Vietnam. The initial tax rate for companies is 5.99% (the tax rate for other Chinese manufacturers/exporters is 6.38% -153.25%). At present, the "double anti investigation" has not been completed, and the above results are only preliminary findings. The US Department of Commerce still needs further verification before making a final ruling.
 

(1) Prior to this, the US government had imposed tariffs of 25% and 145% respectively, along with the initial tariff rate of the "double anti investigation", resulting in a cumulative tariff of 646.62% (note 25%+145%+470.63%+5.99%=646.62%).
(2) In 2024, the company's export sales to the United States accounted for approximately 52% of its operating revenue. In the first quarter of 2025, the cumulative normal shipment volume of domestic factories to the United States is about 11600 tons, accounting for about 52% of the current sales volume.
(3) The full production of the "35000 ton annual production of sugarcane bagasse biodegradable and environmentally friendly tableware project" in the Thai factory has effectively countered the "double reverse" situation; The implementation of the investment plan for the "Annual Production of 65000 Tons of Degradable and Environmentally Friendly Bagasse Tableware Project" will further enhance the company's market competitiveness and help reverse the adverse effects of the "double reverse" policy. It is expected that it will not have a significant impact on the company.
At present, Zhongxin Company has entrusted a professional legal team to actively respond to the "double anti investigation" and immediately appealed to the US Department of Commerce. The US Department of Commerce will send personnel to the company's site for verification in June 2025.
Due to the completion of the construction and full production of the "35000 ton annual production of sugarcane bagasse biodegradable and environmentally friendly tableware project" at the Thai factory, orders from American customers have been accepted and shipped to American customers in mid April. Starting from the second quarter of 2025, orders from American customers that were originally planned to be produced domestically will be transferred to factories in Thailand for production.
On April 28th, Zhongxin Co., Ltd. (603091) announced its first quarter report for 2025, with operating revenue of 372 million yuan, a year-on-year increase of 9.92%; The net profit attributable to the parent company was 72.19 million yuan, a year-on-year increase of 14.45%.