减产20%反内卷，布局rPET等产品技术

⚫⚫⚫⚫⚫ Seethe last page for disclaimerAPPENDIX 1Summary➢The company is a leading domestic enterprise in the research, development and production of polyestermaterials. It has an annual production capacity of 3 million tonnes of bottle-grade chips and is one of theworld's largest producers. Currently, China accounts for nearly 50% of the global polyester bottle productioncapacity, making it the world's largest producer and consumer. In terms of the competitive landscape in thedomestic market, the industry leaders include Yisheng, CR Materials, Sanfangxiang and our company. As ofthe end of 2024, these four manufacturers' total production capacity was around 15.49 million tonnes, anddomestic industry concentration (CR4) had increased further to over 80%. Compared to overseas equipment,China relies primarily on large-scale new installations, which offer significant advantages in terms of bothefficiency and cost.➢Under the backdrop of overcapacity, the industry has started to experience a 'reverse internal competition'. In2024, a total of 4.17 million tonnes of new polyester bottle flake production capacity was invested in China,increasing from 16.61 million tonnes at the end of 2023 to 20.43 million tonnes at the end of 2024—a year-on-year increase of 28%. Due to the concentrated deployment of new polyester bottle chip production capacity,industry competition has intensified and the average processing fee hasdecreased by over 30% compared tolast year. The company's polyester bottle chip processing fee has fallen in line with market trends, resulting ina significant decline in gross profit and margin in 2024. In July 2025, the company announced plans togradually reduce its PET production in the near future, based on the overall industry situation and thecompany's production and operational needs. This production reduction and maintenance involves 600,000tons of PET production capacity, accounting for 20% ofthe company's total.➢The company holds a 7.5222% stake in Lingxin Qiaoshou and has established a 'High Performance MaterialsJoint Laboratory' with them. We will collaborate extensively on the development of new materials, processoptimisation and the application of robotic structural components. Monthly orders for the Linker Hand seriesdexterous hand exceed a thousand units, ranking it among the top products in the industry. It is widely used infields such as scientific research, medical assistance and industrial automation.Its revenue is not currentlyincluded in the company's consolidated financial statements. Kaipuqi, a wholly-owned subsidiary of thecompany, has set up an injection moulding division. Focusing on continuous material modification, thedivision will providecomprehensive support for Lingxin Clever's "plastic instead of steel" structuralcomponents, integrating "material formula optimization, mold development, and injection molding" toaccelerate the transformation of scientific research achievements into industrial applications.➢The production technology in the polyester bottle flake industry is constantly advancing, with improvementsand innovations being made to the production process. New products and technologies, such as rPET, areconstantly emerging and finding applicationsin a wider range of fields. Alongside the ongoing developmentof polyester bottle-grade slicing products, the company has developed a comprehensive range of technologies,including rPET, with the aim of enhancing the performance of polyester and expandingthe range ofapplications for polyester materials, while creating an advanced polyester technology platform.➢Risk warning. Market risk; Exchange rate fluctuation risk; Risk on the raw material side. 2 Seethe last page for disclaimer分析师介绍分析师庄怀超，本科毕业于北京航空航天大学，硕士毕业于香港大学金融学专业，主要覆盖化工和新材料行业。该分析师2022-2024年曾任职于海通国际研究部，团队2022年获得过亚洲货币第一名，该分析师2025年加入环球富盛理财有限公司，继续覆盖化工和新材料行业。环球富盛理财有限公司是一家香港的持牌券商机构，成立于2014年。该分析师曾在wind发布报告超过500篇，主要覆盖行业包括化肥、农药、气体、炸药、氟化工、分子筛、电解液和合成生物学等行业。覆盖的公司包括:东岳集团、环球新材国际、中国心连心化肥、中化化肥、阜丰集团、中国三江化工、中国联塑、浦林成山、米高集团、中国石油化学、中国旭阳集团、彩客新能源、天德化工、理文化工等。邮箱:charles.zhuang@gpf.com.hk电话:(852)97487114; (86) 188 01353 3537 3 SECTOR RATING DEFINITIONThe Benchmark: Hong Kong Hang Seng IndexTime Horizon: 6 to 18 monthsRatingOutperform跑赢大市Neutral中性Underperform跑输大市DISCLOSURE OF INTERESTS(1) The Analysts and their associates do not serve as an officer of the issuer mentioned in this Research Report.(2) The Analysts and their associates do not have any financial interests in relation to the issuer mentioned in this Research Report.(3) Global Prosperity Financial Company Limited and/or its subsidiaries do not hold equal to or more than 1% of the market capitalization of the issuermentioned in this Research Report.(4)Global Prosperity Financial Company Limitedand/or its subsidiaries have not had investment banking relationships with the issuer mentioned in thisResearch Report within the preceding 12 months.(5) Global Prosperity Financial Company Limitedand/or its subsidiaries are not making a market