Hongxing Automotive Leather (Fujian) Development Co., Ltd., a subsidiary of Xingye Technology, won the 2023 Lingxuan Award, Mass Production, New Materials Category Excellence Award.

The Lingxuan Award, the China Auto Parts Annual Contribution Award, is China’s authoritative local parts industry evaluation organization.

Hongxing Automotive Leather’s award-winning product, with high physical properties and low VOC automotive leather, is its independently developed high-end automotive interior leather.

Currently, automobile interiors have the fastest-growing demand for natural leather in China. As the high-end development trend of domestic new energy vehicles continues to rise, the market demand for natural leather continues to increase. In 2022, China’s new energy vehicle sales were 6.887 million units. Among them, the sales volume of high-end new energy vehicles has exceeded 400,000. Against this background, the scale of the domestic automotive interior leather market has continued to increase, and the industry has ushered in a period of development opportunities.

As a leading enterprise in the domestic tanning industry, Xingye Technology’s products originally focused on leather for shoe uppers, bags, furniture and special functional leather. In April 2022, Xingye Technology acquired Hongxing Automotive Leather through equity acquisition and capital increase.

With the rapid growth of domestic new energy vehicle sales in 2022, Xingye Technology’s automotive interior leather segment achieved operating income of 309 million yuan, accounting for 15.52% of total revenue.

Entering 2023, Xingye Technology continued to make steady efforts in the automotive interior leather sector. Not only have the company’s products been recognized by authoritative awards, but with its advantages in product research and development, quality control, stable supply, and rapid response, its subsidiary Hongxing Automotive Leather has also obtained supplier qualifications and supplied product to new energy vehicle brands such as Li Auto, NIO, and Cyrus Ventures.