About BILLION IND Company

Baihong Industrial Holdings Co., Ltd. (the “Company” or “Baihong”) and its subsidiaries (collectively, the “Group”) are one of the largest developers and producers of polyester filaments in the People's Republic of China (“China”). The Group's polyester filament products are positioned in the middle and high-end markets at home and abroad. The main products are stretch deformed wire, fully drawn wire and pre-oriented wire, and most have special physical properties and functions (such as superimitation cotton, UV resistance, moisture absorption and sweat absorption, flame retardancy, abrasion resistance, super soft, super bright, antibacterial, etc.), and are widely used in various consumer products, including high-quality fabrics and textiles used in clothing, footwear and home textiles. Baihong was listed on the Main Board of the Stock Exchange of Hong Kong Limited (the “Stock Exchange”) on May 18, 2011. As of December 31, 2023, the Group's domestic polyester filament design production capacity was 2,726,400 tons per year, of which the design production capacity of fully drawn wire and pre-oriented wire was 1,005,000 tons per year, while the design production capacity of stretch deformed wire was 711,400 tons per year. The combined design production capacity of stretch deformed wire, fully drawn wire and pre-oriented wire is 1,716,400 tons per year, making it the largest differentiated chemical fiber production base in Fujian Province. As of December 31, 2023, the Group's domestic polyester product design capacity was 910,000 tons per year, of which the design production capacity of bidirectional stretch film (“BOPET film”) was 702,500 tons per year, making it a large-scale domestic polyester film manufacturer. The Group introduced an internationally advanced German Dornier BOPET film production line and R&D equipment. The products are positioned in the domestic high-end functional polyester film market, used in flexible packaging, composite printing, electronics, apparel, safety and energy saving, etc., and the production workshop implements purification workshop management to meet the demanding environmental requirements of various types of film production, and vigorously develops new environmentally friendly polyester film products that can be applied to various fields. In order to further expand overseas markets, the Group has established Baihong Industrial (Vietnam) Co., Ltd. (“Baihong Vietnam”) in Vietnam to develop overseas polyester bottle business. We have also set up production facilities for polyester filaments and production facilities for polyester, pre-oriented wire, and fully drawn wire in Vietnam. As of December 31, 2023, Baihong Vietnam's polyester filament design production capacity was 554,300 tons per year, of which the design production capacity of fully drawn wire and pre-oriented wire was 184,000 tons per year, while the design production capacity of stretch deformed wire was 170,300 tons per year. The combined design production capacity of stretch deformed wire, fully drawn wire and pre-oriented wire is 354,300 tons per year. On September 20, 2022, the Group announced a further investment of approximately US$73,900,000 to develop a new polyester bottle production facility in Vietnam. The design capacity is about 300,000 tons. It was put into commercial production in July 2023. The design production capacity for polyester bottles is 550,000 tons per year, which is of landmark significance for the Group to expand into emerging markets. Furthermore, in view of the fact that the consumption of polyester industrial yarn in China has been rising in recent years, and in particular, the rapid expansion of the polyester industrial yarn market in East China, the Group has invested about 185,000,000 US dollars to establish a production line for polyester industrial yarn products to expand the polyester industrial yarn product business. The total production capacity of the new manufacturing facility is about 250,000 tons per year, and commercial production began on July 17, 2020. In recent years, the consumption of polyester film in China has continued to increase. The Group's market position as one of the largest polyester film manufacturers in China. By expanding its existing polyester film business, the company will be able to enjoy the growth of this market by utilizing its current scale and expertise in manufacturing polyester film. To this end, the Group plans to invest approximately US$320,000,000 in the four-year period from 2020 to 2023. The polyester film production line was fully put into commercial production in November 2023. After full completion, the additional polymerization production capacity will be 400,000 tons per year, which will enable the new polyester film to be fully utilized to produce 228,000 tons per year.