In recent years, the Southeast Asian hygiene products market has demonstrated strong growth momentum. According to customs statistics, in 2025 Quanzhou's exports of tissue and hygiene products reached RMB 10.46 billion, a year-on-year increase of 3.4%, setting a new record and accounting for 17% of China's total annual exports of such products, ranking first among all prefecture-level cities nationwide. Among these, ASEAN countries have emerged as Quanzhou's largest trading partners, with exports totaling RMB 3.94 billion. Indonesia's online disposable hygiene products market, for instance, grew by 34.4% year-on-year in the first half of 2025, while Thailand's disposable hygiene products imports grew at a compound annual rate of 13.57% from 2020 to 2024. As a company rooted in Quanzhou, we have been closely monitoring the growing demand for hygiene products across Southeast Asia.

The Southeast Asian region is home to over 600 million people, and its consumer goods market is projected to exceed US$2 trillion by 2026, driven by rapid economic growth and an expanding middle class. Against this backdrop, we have identified promising opportunities in markets such as Indonesia, Thailand, Vietnam, and the Philippines. After careful assessment, we have begun taking initial steps to explore these markets.

One important driver has been the RCEP trade agreement. Since its entry into force, RCEP has significantly lowered trade barriers between China and ASEAN member countries, with over 90% of goods trade gradually moving toward zero tariffs. Quanzhou enterprises have already benefited substantially from RCEP benefits. As of the end of 2025, Quanzhou Customs had issued 17,701 RCEP certificates of origin, covering a value of RMB 6.694 billion, helping local companies secure tariff savings of RMB 102 million. Several Quanzhou hygiene product manufacturers have leveraged RCEP to successfully enter Thailand and other Southeast Asian markets, achieving steady growth in export volumes. As a trading company, we have also started assisting local factories in navigating RCEP-related documentation and are actively exploring ways to help our clients take full advantage of these tariff benefits.

In the coming months, we plan to gradually build connections with distributors and manufacturers in key target countries, focusing initially on Vietnam and Thailand. Our approach will be measured and deliberate—starting with small-scale pilot collaborations to better understand local market conditions and customer preferences. We will also continue to support local manufacturers in navigating export procedures and complying with regional regulatory requirements.

We look forward to growing together with our partners in this dynamic region.