Excerpt from Shanghai Ziquan 2008 Report on PET Bottles and Caps

The main product of the company's packaging business is to provide supporting packaging for fast-moving consumer goods such as beverages and foods, and it belongs to the new material packaging industry. In recent years, the plastic packaging industry has become one of the most rapidly developing areas in China's plastics industry. With the economic development, especially the 2010 Shanghai World Expo, more rapid consumer goods provide good opportunities for development and opportunities, and also provide a broader development space for the development of the packaging industry.

The major markets for PET bottles and other packaging materials produced by the Container Packaging Division of the company are the soft drinks industry and edible oil. In recent years, the soft drink market has maintained an average annual growth rate of 15%-20%. At the same time, with the development of rural economy, the income of farmers With the continuous improvement of the consumption level, the food and beverage industry has a relatively rapid growth space in the central and western regions and rural areas, bringing excellent opportunities for the company's main products such as PET bottles and preforms, labels, and bottle caps. The product is safe, lightweight, and meets the requirements of environmental protection. It is the first choice for beverage packaging in the world. It has also been accepted by consumers and belongs to the mature processing and manufacturing industry. Its sales revenue grows at a reasonable rate. Through years of cooperation with well-known domestic and international companies, the company's container packaging division has received customer recognition and attention in terms of products, quality and services as well as social responsibility and other cultural aspects, ensuring a stronger relationship between the company and its customers. With long-term cooperation advantages, PET bottle sales reached 3.88 billion in 2008, and it is in the leading position in the same industry. PET anti-theft caps have risen in recent years, with sales reaching 5.1 billion in 2008.

In recent years, fruit juice beverages are more in line with people's health requirements because of their nutrition, and their consumer market growth is strong. The company seizes opportunities and actively develops beverage OEM business. After years of cultivation, the business of beverage OEM business units is further improved. Big and strong, in a few short years, the business has been the leader in the industry, sales in 2008 reached 770 million bottles, at present, the business is developing toward the direction of professional OEM, has achieved better returns. Due to the vast market space, the business continues to grow and the company has accelerated its distribution throughout the country. With the completion of the project, it will bring new profit points to the company.

The main products of the company's bottle label business division are crown caps and labels. As the demand for beer has increased year by year, the national demand for the crown cap will also continue to rise. It is expected that the market size of 51 billion will reach 2010, most of which will be the demand for high-quality caps from well-known brand brewers at home and abroad. After years of hard work, the crown cap produced by the Label Division has achieved remarkable scale benefits, ranking the leading position in the industry, and has been producing and selling for the same industry for 13 consecutive years. In 2008, the sales volume reached 15.6 billion. The division will continue to use its own comprehensive advantages and strive to conduct in-depth studies of the industry's development strategy to gain greater market share, especially in the mid-to-high-end market. Labels are mainly used in the packaging of beer, beverages, daily necessities, etc. In view of the increasing demand for packaging aesthetics, despite the mixed industry, the demand of the entire industry, especially high-end customers, is growing rapidly. The Quanzhou Brand has locked in high-end customers and cooperated closely with famous brands. The development prospects are broad. PVC shrink labels account for 30% of the Chinese market. High-transparency PE color films fill the gaps in the country and have obtained invention patents.

In short, as one of the leading companies in the domestic packaging industry, the company occupies a strong competitive position and a relatively high market share in the packaging industry in China. In recent years, the company has always been implementing the strategy of becoming bigger and stronger packaging business and fully utilizing it in the market competition. The strategy of “cooperating with giants and becoming giants” has enhanced industry rankings and market recognition, and maintained sustained and stable development. At the same time, the packaging industry of the company’s key development in the future is closely related to the development of the national economy, with broad development prospects and sustainable development capabilities. prominent.