Zhongxin Corporation actively responds to the US Department of Commerce's "double anti investigation"

Recently, the US Department of Commerce launched anti-dumping and countervailing investigations (referred to as "double anti-dumping investigations") on thermoformed molded fiber products originating from China and Vietnam. This investigation involves Zhongxin Corporation and its three wholly-owned subsidiaries. Faced with this sudden challenge, Zhongxin Corporation quickly responded and took a series of proactive measures to cope.

Double anti-dumping investigation refers to the simultaneous anti-dumping and countervailing investigations of the same product from one or several countries or regions. Anti dumping mainly targets the sale of imported products at prices lower than normal value, thereby causing damage to domestic industries; Countersubsidies, on the other hand, target the competitive advantage gained by imported products from receiving subsidies from the exporting country's government, which causes damage to domestic industries.Ltd. specializes in the research, development, production, and sales of naturally degradable plant fiber molded products, equipment, and molds. Among them, thermoformed molded fiber products are one of the company's important export products. The anti-dumping and countervailing investigation initiated by the US Department of Commerce will undoubtedly have a significant impact on Zhongxin's export business. According to statistics, from January 1, 2023 to December 31, 2023, the sales amount of thermoformed molded fiber products exported by the company to the United States accounted for 47.34% of the company's total revenue for the current period; During the period from April 1, 2024 to September 30, 2024, this proportion reached 50.04%. Therefore, the results of this anti-dumping and countervailing investigation will directly affect the competitiveness of Zhongxin Group in the US market and its future business expansion.

Faced with the challenge of the double anti investigation, Zhongxin Shares did not choose to evade or remain silent, but quickly established a special working group and hired a professional lawyer team to actively respond. The company stated that it will make every effort to strive for favorable tax rates to mitigate the impact of this investigation on its business.

Firstly, Zhongxin Corporation has strengthened communication and exchange with the US Department of Commerce, actively providing relevant information and evidence to prove that the company's exported products have not engaged in dumping and subsidy activities. At the same time, the company has also strengthened communication and cooperation with customers to ensure that they can fully understand the situation of this survey and continue to support the company's products and services.

Secondly, Zhongxin Group has accelerated the construction progress of its factory in Thailand. As early as November 2023, the company registered and established Thailand Zhongxin Environmental Protection Technology Co., Ltd. in Thailand, and planned to invest 50 million US dollars to build a factory. After the news of the double anti investigation came out, the company immediately adjusted the construction plan of the Thai factory and integrated more resources to accelerate the construction progress. The company strives to officially start production in the first quarter of 2025 to undertake orders from American customers, thereby reducing the impact of the anti-dumping investigation on the company's business.

In addition, Zhongxin Group has increased its research and development investment to improve the technological content and added value of its products. The company is well aware that only by continuously improving the competitiveness of its products can it stand undefeated in the fierce market competition. Therefore, the company will continue to increase investment in technology research and product innovation to develop more products with independent intellectual property rights and market competitiveness.

Despite facing the challenge of double anti investigation, Zhongxin Shares remains confident in its future development. The company stated that it will continue to adhere to the innovation driven development strategy and continuously improve the technological content and added value of its products; At the same time, we will actively expand domestic and international markets, strengthen communication and cooperation with customers, in order to achieve sustained and stable business growth.

In the process of responding to the anti-dumping and countervailing investigation, Zhongxin Group also deeply recognized the uncertainty and complexity of the international trade environment. Therefore, the company will continue to strengthen risk management and compliance awareness to ensure that its export business meets the requirements of international trade rules and laws and regulations.

In addition, Zhongxin Group will continue to promote its globalization strategy and strengthen its connections and cooperation with overseas markets. The company plans to establish production bases and sales networks in more countries and regions in the coming years to further enhance its competitiveness and influence in the global market.

In short, Zhongxin Corporation has shown a high sense of responsibility and mission in the face of the US Department of Commerce's anti-dumping investigation. They have responded quickly and actively, and taken a series of effective measures to mitigate the adverse effects of this investigation.