锦纶切片原料到终端产品全覆盖，打造国际化高端针织面料产业基地

⚫⚫⚫⚫⚫⚫ Seethe last page for disclaimerSummary➢Full coverage from nylon slicing raw materials to end products.Thecompany’sproducts include nylon 6 chips, nylon 6 civilian silkand textile printing and dyeing fabrics. Nylon 6 chips are primarily supplied to downstream markets via a self-production and self-sales model, with some also being supplied for internal use in industries such as civilian spinning, industrial silk, engineeringplastics and films.The nylon 6 chips produced by the company fall into three categories: civilian spinning grade, industrial spinninggrade, and engineering plastic grade. There are many types of nylon yarn products which can be used for webbing, lace and yarnproduction, aswell as in various air-jet and water-jet looms for warp and weft yarns and in warp and weft knitting machines andshuttle weaving machines. The company's textile printing and dyeing fabrics are promoted to major brands through exhibitionsinShanghai, Paris, New York and other locations. The company's customers are distributed across various downstream industries,including injection moulding, the automotive sector, electronics, carpets, microfibre, webbing, lace, seamless underwear, warpand weft weaving,machine weaving, knitting, wrapped yarn and woven socks. These rich customer resources provide a strongfoundation for the company's growth.➢Introduce industry leaders as controlling shareholders and enhance management strategies. In January 2024, the company issued15,844,188,600 A-shares to Liheng Investment, going public and introducing an indirect controlling shareholder—the industryleader, Hengshen Group. In June 2024, the company completed the election of the board of directors and supervisory board,appointed the executive team and changed the company name and securities abbreviation. Building on the company's excellentmanagement team, we introduced advanced management concepts and industry experience from leaders in the field. This hasoptimised the company's strategic planning, enhanced its financial strength, focused its efforts on its core business and improvedits overall competitiveness.➢Drive research and development with brand strategy and complete multiple product developments. The thermochromic and high-entropy elastic fibre new materials projects have passed the mid-term assessment of the postdoctoral programme. Multifunctionalpolyamide fibre products are continuously being optimised, and anti-mould/antibacterial functional fibres have been successfullyapplied to school uniform fabrics in primary and secondary schools in Jiangmen City. The development of composite fibres, includingfibre varieties such as nylon and leather cores, has gradually improved the quality of core varieties through early research andpromotion. This has been recognised by customers after trial use and provides a foundation for the subsequent industrialisationofthe company's new products. In terms of textile printing and dyeing fabrics, we focus on developing new varieties for brandcustomers, particularly GRS and swimsuit jacquard fabrics. Our focus on the sustainable development of products has resultedinour knitted fabrics passing OEKO-TEX environmental certification for 19 consecutive years, GRS global recycling certification forseven consecutive years and HIGG social responsibility and environmental self-assessment audits for six consecutive years, therebyenhancing the credibility of our products.➢The actual controller has promised to inject assets and businesses related to industry competition into the listed company. Oncethe company has issued stocks to specific targets in 2023, Chen Jianlong will become the actual controller of the listed company.The eight enterprises, which are controlled by Chen Jianlong, are engaged in the production and sales of nylon 6 chips and spinning.These enterprises compete with the main business of the listed company (i.e. chips and spinning) within the same industry. Inresponse to these issues of competition between industries, Chen Jianlong has promised to inject assets and businesses related tocompetition between industries into the listed company within 60 months of obtaining control of the listed company through ZihengInvestment (29 January 2024) or take other measures to properly resolve competition between industries with the company. Thesecommitments are currently valid, but the timeframe for completing them and including the related assets in the listed company'sconsolidated system is uncertain.➢Build an international, high-end knitted fabric industry base. In August 2024, the company invested in the construction of the 'HighPerformance Polyamide Differentiated Fibre Intelligent Manufacturing Project' in Xinhui District, Jiangmen City, GuangdongProvince, with a budget of no more than 2.9 billion yuan. The goal is to establish a production line with an output capacityof 100,000tons of differentiated nylon filament, which is set to begin construction in September 2024. In January 2025, the