Taiwan textile Federation

◆Functional fabrics：A variety of high-function materials, anti-acid, fire-retardant, anti-oil and waterproof, memory, anti-fouling, easy decontamination, cold-proof, anti-bacterial, odor resistance, anti-static, anti-ultraviolet radiation, wrinkle-free, heat insulation, light-storing, color-changeable and so on; Permanent press, moisture absorption and quick-drying, fluorescence, skin beauty, fitness, anti-mosquito, smell and other functional fabrics, energy saving and environmental protection-type fabric; radiation protection fabrics, anti-mite and anti-bacterial, negative ion, far-infrared fabric and other multi-functional fabric; a variety of types of composite materials, coating materials, nano bionic materials and other multi-functional fabrics.

◆High-performance fiber：Kevlar, carbon fiber, high strength and high modulus polyethylene, functional fabric boron fiber, glass fiber, PBO fiber, PBI (Polybenzimidazole) fibers, polyimide fibers, PPS (polyphenylene sulfide), basalt fiber, seaweed fiber, stainless steel fiber, nano-fiber;

◆Highly-functional Fiber：Multi-functional polyester fiber, flame-retardant fibers, fiber functional fabric of perspiration and moisture absorption, anti-ultraviolet fiber, anti-bacterial fiber, soybean protein fiber, fiber-PLA (PLA), milk fiber, bamboo fiber, bamboo fiber, fiber with element germanium, PTT fiber, fiber pearls, Chinese medicine fiber, magnetic fibers, intelligential fiber and other functional fiber;

◆A variety of additives：functional fabric A variety of functional finishing agent、Wetting agent and penetrating agent, emulsifier and dispersing agent, detergents, foaming agent, stabilizer, defoamer, leveling agent, fixing agent, chemical agents, adhesives, shrink wrinkle-free finish, Fluorescent whitening agent, refusing water and oil, functional fabric anti-static agent, flame-retardant finish, soft finish, pulp bleaching agent, natural dyes, and so on;

◆Other ancillary products：A variety of functional clothing: functional fabric flame-retardant suits, fire suits, fire suits, sportswear, special clothing / uniforms, bullet-proof clothes, winter clothes, ultraviolet / radiation clothing, spacesuits, the outdoor clothing / Climbing wear, anti-power Clothes, dust-proof suit, diving suit. form complete set and equipment.

◆The new textile technology：Functional finishing technology, green functional fabric extile technology, plasma processing technology, electrostatic spinning and nanotechnology.

◆New standards and testing for textile：Functional textiles functional fabric standards, testing instruments and equipment.

◆Garment processing equipment：A variety of new functional materials and new processing machinery, and other related support materials.

In the last decade, functional fabric airbags or inflatable restraints have received noteworthy significance as a safeguard for the driver and the passengers in case of an accident. Initially, the functional fabric bags were made for head-on collision, but now, there are many other safety devices like side impact functional fabric bags, knee bolsters, side curtain, etc, available for safety in any type of crash. Because frontal collisions are a main reason of accidental deaths, airbags are being presented as a standard product in vehicles by legislation, which has given the quick increment of airbags business in the last decade. NHTSA and HHS report that functional fabric airbag systems have played an important role in saving thousands of lives since 1985. In 2002 alone, due to the functional fabric airbag system a 20 per cent reduction in fatalities resulting from fatal collisions has been observed.
In 1999, there were 55 million vehicles with 81 million functional fabric airbags. In 2004, the number of frontal functional fabric airbag units was nearly 100 million and the number of side-impact functional fabric airbags nearly 65 million. In the same year, nearly 23 per cent of the new vehicles in North America had side functional fabric airbags for chest protection and 17 per cent had side functional fabric airbags for head protection. By 2005, this has increased to 180 million functional fabric airbags and 65 million vehicles.


China International functional fabrics and high-performance fiber exhibition is organised by China flame-retardant Institute , China Textile Institute of Science and Technology, China Textile Industry Productivity Center.

In recent years, with China's rapid development in the field of textile, it has greatly stimulated the scientific research and the passion in technological innovation in the whole field. The textile industry in China will be geared to the international,  the textile industry has been rapid development in China and China, as well as Asia, has  become a global textile manufacturing center, especially the new fiber technology  and the high-grade functional fabric, which has became the focus of development, own potential market demand. Many enterprises overseas has great expectations to Chinese high-functional materials market. With the scientific and technological progress and economic development, their demand will increase gradually. In the global financial tsunami, the competition in textile industry in our country has become more intense. The use of high-tech arming textile industry is a priority, and innovation will make China the world's largest producer and applications market of functional textile products in the next few years.

In order to further promote the rapid development in China's new technology fibers and functional fibers, meet the clients' special needs, strengthen exchanges and cooperation between Chinese and foreign technology and provide a platform for show and communion, "2011 China International functional fabrics and high-performance fiber exhibition" is hold by China Textile Institute of Science and Technology, and the Textile Industry Productivity Center,China flame-retardant Society.

Warmly welcome to participate in this exhibition!

Foreland Fabrictech Holdings Limited (Foreland) is a vertically integrated manufacturer of fabrics located in the PRC, and focuses mainly on high-end functional fabrics. We believe there is and will continue to be growing demand for functional fabric clothing in the PRC, especially with the increase in demand for sporting and business apparels, driven by the growing affluence of the Chinese consumers. However, the more cautious macroeconomic picture and lingering credit crunch issue may dampen sentiment somewhat. As a result, Foreland has decided against going ahead with its planned RMB96m acquisition of Shandong Taroko. Instead, Foreland will continue to expand its business organically, including the proposed construction of a new production facility at Andong. When completed by 1H09, we believe that the macroeconomic picture would have cleared up considerably. In addition, as Foreland has already set aside some S$16.6m from its IPO proceeds for the plant, we do not expect funding to be an issue. Applying a justified leading P/E of 6.5x derived from the Gordon Growth Model to our blended FY08/09F EPS, we obtain a fair value of S$0.39. As this offers a potential upside of 59.2%, we initiate coverage on Foreland with a BUY rating.

Producer of high-end functional fabrics. Forleland Fabrictech Holdings Limited (Foreland) is a vertically integrated manufacturer of fabrics located in the PRC. It focuses principally on high-end functional fabrics. Foreland’s products are mostly marketed under the “Fulian” brand and are largely sold domestically to i) manufacturers of sports, leisure and business apparel, who export to Europe, USA and the Middle East, and ii) textile traders who export Foreland’s products overseas.

Favourable demand for functional fabrics. There is and will continue to be growing demand for functional fabric clothing in the PRC, especially with the increase in demand for sporting and business apparels; the former due to mega sporting events such as the Olympics, and the latter due to the continued rise in the number of city dwellers. Other areas of growth in China’s textile industry include women’s fashion and infant wear, for which functional fabrics are used. Although there have been some weakening in the demand from the US for Chinese made garments, domestic demand remains robust, driven by the growing affluence of the Chinese consumers as well as the still robust Chinese economy. The export value of the textile industry in China is still expected to grow 15% in 2008, down slightly from 18.9% in 2007.

Cautious expansion is still the key. In wake of the more cautious macroeconomic picture functional fabric as well as the current credit crunch situation, Foreland has decided against going ahead with its planned RMB96m acquisition of Shandong Taroko. Instead, Foreland will continue to expand its business organically, including the proposed construction of a new production facility at Andong. When ready in 1H09, the new plant should boost its annual production capacity by another 15m yards. By then, we believe that the macroeconomic picture would have cleared up considerably. In addition, as Foreland has already set aside some S$16.6m from its IPO proceeds for functional fabric the plant, we do not expect funding to be an issue.

Initiate coverage with functional fabric BUY and S$0.39 fair value. Applying a justified leading P/E of 6.5x derived from the Gordon Growth Model to our blended FY08/09F EPS, we obtain a fair value of S$0.39. As this offers a potential upside of 59.2%, we initiate coverage on Foreland with a BUY rating.

We recently visited Qian Feng Fabric Tech (QFFT), an integrated manufacturer of quality functional knitted fabrics located in Fujian Province. Currently, QFFT is in the process of expanding its capacity, both for weaving (from 2862 tons in FY07 to 3600 tons by end 2008) and dyeing and post-processing treatment (from 9540 tons to 12000 tons). According to management, QFFT is expanding capacity to meet the demand for functional fabrics from Chinese consumers, which is still growing strongly, thanks to the increasing affluence of the society. In 1H08, QFFT posted a net profit of RMB57.3m on sales of RMB208.4m, and management believes that the seasonally stronger 2H will continue to contribute around 55-60% of its full year performance. We do not have a rating on the stock.

Integrated manufacturer of functional fabrics. We recently visited Qian Feng functional fabric Tech (QFFT), an integrated manufacturer of quality functional knitted functional fabric located in Fujian Province, one of the PRC’s largest functional fabric producing provinces. QFFT is principally engaged in the production, dyeing and post-processing treatment of synthetic knitted functional fabric for use in garments, shoes, luggage and bags. Currently, QFFT is in the process of expanding its capacity, both for weaving (from 2862 tons in FY07 to 3600 tons by end 2008) and dyeing and post-processing treatment (from 9540 tons to 12000 tons). In its recent IPO, QFFT raised about S$17.7m in net proceeds, and it intends to use S$12.8m to expand capacity, S$1.8m to expand its wastewater treatment capacity and another S$1.6m to expand its R&D capabilities.

Demand for functional fabric still growing. According to management, QFFT is expanding capacity to meet the demand for functional fabrics from Chinese consumers, which is still growing strongly, thanks to the increasing affluence of the society. Although there has been some slowdown in textile and garment exports due to the weakening US and European economies, management remains confident that its business is relatively safe as 80% of its sales are for domestic consumption. We understand that QFFT sells to nearly 200 customers, including some of the top-tier sports brand names like Adidas, Nike, Kappa, Anta, Li-Ning and Septwolves (foreign sports names contribute some 6% and local names 15% of FY07 revenue). And to further diversify its risk, none of its customers will contribute >5% of its total sales.

Focus on innovation and product development. From our checks with industry players, we understand that the barriers to entry into this post-processing industry are high, as the knowledge needed to consistently churn out high quality functional fabrics are closely guarded and can only be functional fabric obtained with experience – QFFT has a track record of >10 years in this industry. And to raise the bar further, QFFT intends to continuously focus on innovation and product development – a move that management believes will not only set itself apart from its peers but also to grow its already attractive gross margins, which are currently at 34.8%. In 1H08, QFFT posted a net profit of RMB57.3m on sales of RMB208.4m, and management believes that the seasonally stronger 2H will functional fabric continue to contribute around 55-60% of its full year performance. We do not have a rating on the stock.

Experts forecast that by 2010 up to 40% of garments sold will incorporate one or more functional features. A key area of development and a hot topic in the garment industry, it is not surprising that many manufacturers are now focusing their research on the development of these functional fabrics.

To highlight this exciting new trend, Interstoff Asia Autumn’s organisers have created a special pavilion reserved for producers of functional fabrics only. Buyers looking for value-added products will not only be able to interact with suppliers but also watch live demonstrations hosted by the Taiwan Textile Federation (TTF), putting the exhibitor’s fabrics to the test. Invisible properties will then become visible to all. Experiments will range from water resistance, to sun protection and fire resistance.

he functional fabric production of a garment is a collaboration between textile designers, functional fabric manufacturers, and garment makers, and each stage has its own challenges. The organisers of Interstoff Asia in conjunction with the Hong Kong Apparel Society have created Fabric-to-Fashion to illustrate each step.

Fabric-to-Fashion follows functional fabric the creation functional fabric of an item of clothing from the functional fabric to the finished garment. From May to August 2004, exhibitors can submit their best selling fabrics and see them transformed by talented new designers into innovative fashion designs. The creations will be displayed in a mannequin showcase throughout Interstoff Asia Autumn with each fabric supplier’s details clearly indicated. When the same event functional fabric was hosted last autumn, more than 200 exhibitors participated and all were delighted with its functional fabric unique promotion.