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BOPET business a new growth driver for Billion Industrial

24 Aug '12
5 min read

In addition, we believe the BOPET business, a new growth driver for the Company, will better balance our product portfolio, and lower the risk of our industry concentration.”

During the period under review, we could provide high quality products to our customers due to our long term investments in research and development and products. In the first half of 2012, our differentiated products contributed to 67.6% of our total revenues. This higher proportion of differentiated products ensured us the bargaining power in the market, and it was the main reason that we maintained a relative stable gross and net profit margin.
 
As of 30 June 2012, our total designed capacity for fully drawn yarn (FDY) and partially oriented yarn (POY) was approximately 475,000 tons per year (TPY) and our designed capacity for drawn textured yarn (DTY) had been increased to approximately 399,000 TPY. The Board has approved the investment of approximately RMB1,936,700,000 for the expansion of functional environmentally-friendly BOPET business. The construction of the production facilities for functional environmentally-friendly BOPET is slightly behind schedule due to the earlier start of the rainy season this year. 
 
We expect that the trial production of functional environmentally-friendly BOPET will commence by the end of August 2012, with an initial annual production capacity of approximately 36,500 tons. We have started to actively market our functional environmentally-friendly BOPET products and contact some potential customers, and have received positive initial feedback from them. We believe this has laid a good foundation for the future development of this new business line. 
 
Our total production capacity of functional environmentally-friendly BOPET will reach 255,000 tons by 2014, which will make us the largest BOPET producer in Southern China and possibly nationwide. 
 
As of 30 June 2012, we owned 34 national patents registered in China and have applied for registration of another 10 patents in China. With the support of our strong research and development capacity, among all patents granted, 26 of our patented products are already in production and selling to our customers. Our expenditure on research and development in the first half of 2012 was RMB97,612,000.
 
Revenue from our differentiated polyester filament yarns was RMB2,010,325,000, representing 67.6% of total revenue for the first half of 2012. It is expected that the contribution of differentiated products to our total revenue will reach 69% for the year 2012. We believe that our differentiated patented products will be well recognized by both the domestic and international markets with highly competitive edge.

Billion Industrial Holdings Limited

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