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Hailide's PIY Project In Vietnam May Start Operation In Q2, 2020

Date:Nov 13, 2019

Zhejiang Hailide New Material Co., Ltd., established in 2001, successfully went into public at the Shenzhen Stock Exchange in January 2008(Stock Code: 002206). Through more than 10 years of efforts, our company has been developed into a High-tech Enterprise, Provincial Research Institute of Technology and Industrial Leading Backbone Enterprise of Zhejiang province, with the integration of scientific research, production as well as marketing. Hailide has three main products:industrial polyester yarn,plastic materials and tire cord fabric.Annual capacity: Industrial polyester yarn: 210,000 tons; PET chip: 98,000 tons; Plastic Materials:200 million square meters; PVC calendering materials: 90,000 tons; Luxury vinyl flooring:300 million square meters ; PET dipped cord fabric : 30000 tons.

*Question from investor:
How many front-line workers are required after the project in Vietnam started complete operation?

*Answer from related person of Hailide:
Thanks for your concern. The project in Vietnam requires about 600 front-line workers after complete production began.

*Question from investor:
When will the project in Vietnam start operation? Is there any project plan notice?

*Answer from related person of Hailide:
Thanks for your concern. The construction of project in Vietnam is under orderly proceeding, and the partial capacity is expected to start production in the second quarter of 2020.

*Question from investor:
how about the domestic sales proportion of polyester industrial yarn in Q1-Q3, 2019?

*Answer from related person of Hailide:
Thanks for your concern. Domestic sales of PIY occupied around 30% in the first three quarters of 2019.

*Question from investor:
President Xi Jinping emphasized during the 18th collective study of the Political Bureau of the CPC Central Committee that blockchain will be regarded as the crucial breakthrough in core technology independent innovation, and the government will accelerate boost blockchain technology and industrial creative development. Does Hailide have the blockchain related technology preparation or layout?

*Answer from related person of Hailide:
Thanks for your concern. We do not have blockchain related technology preparation or layout temporarily.

*Question from investor:
Tesla’s super factory is about to start production. What kind of products do Hailide provide to Tesla? Can you introduce the sales size data and later cooperation? Thanks!

*Answer from related person of Hailide:
Thanks for your concern. Manufactures that cooperate with us are mainly international famous assembly manufacturers and tyre producers, and they will provide assembly and tyre to their downstream market, while downstream customers are their commercial secret, not ruling out our products being applied into Tesla.

*Question from investor:
Market capitalization of Hailide is moving lower in recent years, and the secondary market is marginalized. Where does the differentiation manifest?

*Answer from related person of Hailide:
Thanks for your concern. The share price of our company in the secondary market is affected by various factors. Hailide is specialized in major business products and differentiated service. We have 3 differentiated PIY products for vehicle, namely HMLS yarn, seat belt yarn and airbag yarn. The joint venture companies of Hailide in Europe and US, and the offices abroad employ foreign workers from different regions to serve local market, which favors customers’ demand being rapidly reflected, belonging to differentiated service.