On the evening of June 2nd, Dawn Group announced that it has signed a "Cooperation Agreement" with Zhejiang Hangzhou Hangfu Advanced Material Technology Co., Ltd. They plan to invest in the establishment of a joint venture company called Shandong Dawn Hangfu Advanced Materials Co., Ltd. (referred to as "Dawn Hangfu"). As the main body of the project, Dawn Hangfu invests in the construction of copolyester material projects, including high-temperature polyester (PCT) projects, copolyester (PETG/PCTG) projects, and methane dimethyl ether (CHDM) projects, and is engaged in the R&D, production and sales of the above materials.

According to the announcement, the total investment of the project is CNY 200 million, 30% of which will serve as the registered capital of Dawn Hangfu. Dawn Polymer plans to contribute CNY 48 million in cash, accounting for 80% of the registered capital of Dawn Hangfu. Zhejiang Hangfu will contribute CNY 12 million in assessed intellectual property rights, accounting for 20% of the registered capital of Dawn Hangfu. The remaining 70% of the investment will be supplemented by Dawn Hangfu through project loans or other financing methods.

"High-temperature polyester possesses characteristics such as high temperature resistance, high toughness, scratch resistance, yellowing resistance, hydrolysis resistance, chemical crack resistance, and low dielectric loss. It can be used in various fields such as semiconductor LED packaging devices, 5G communication, electronic components, automotive components, solar panel backsheet films, and high-temperature fibers. It is a high value-added basic chemical resin material." According to the introduction, copolyester is an environmentally friendly new material, and it has been one of the alternative materials to polycarbonate (PC) and polyvinyl chloride (PVC) under the background of the upgrading of global health and safety regulations and environmental protection standards.

Now, high-temperature polyester and copolyester products are mainly dominated by companies like Eastman in US and SK Chemicals in South Korea. These high-performance polymer materials belong to the top-tier in the industry. The domestic production rate of high-temperature polyester and copolyester in China is relatively low. The copolyester material project planned by Dawn Hangfu aligns with the market development trend and can serve as a substitute for imported products. Industry experts analyze that as relevant regulations and standards are implemented, the substitute market is expected to continue expanding.

As a prominent player in the domestic copolyester field, Zhejiang Hangfu possesses core technologies in specialty polyester chemical copolymerization and polymer material physical blending. In terms of technology, Dawn Hangfu will inherit Zhejiang Hangfu's leading preparation technology and combine it with Dawn's esterification platform engineering technology to fill the technical gaps in domestic high-temperature polyester and copolyester. Zhejiang Hangfu has already completed pilot and intermediate trials, and some products have obtained customer validation, laying the foundation for mass production.

Dawn Polymer stated that this collaboration aimed to fully leverage the respective advantages of both companies in terms of technology, capital, and market, and mobilize various resources to jointly promote the business of high-temperature polyester and copolyester materials. The goal is to develop and produce high-value-added products, break foreign technological monopolies, improve the company's product structure, and continuously enhance the industrial, product, and enterprise chains. This collaboration aligns with the company's overall strategic development plan and is expected to contribute to future business performance improvements.