Production Capacity and Investment - The design capacity for domestic polyester filament is 2,726,400 tons per year, with 1,005,000 tons for fully drawn yarn and pre-oriented yarn, and 711,400 tons for stretch yarn[5]. - The design capacity for polyester film is 255,000 tons per year, with 252,500 tons specifically for BOPET film, making it one of the largest polyester film manufacturers in China[6]. - The company has invested approximately $185 million to establish a production line for polyester industrial yarn, with an estimated total capacity of 250,000 tons per year, which commenced commercial production on July 17, 2020[6]. - The company is investing about $230 million to establish a production line for polyester film, expected to reach a total capacity of approximately 255,000 tons, with 222,000 tons specifically for polyester film production[6]. - The establishment of Baohong Vietnam aims to expand overseas polyester bottle chip business, with a design capacity of 405,000 tons per year for polyester filament[6]. - The combined design capacity for stretch yarn, fully drawn yarn, and pre-oriented yarn in Vietnam is 205,000 tons per year, marking a significant step in expanding into emerging markets[6]. - The company launched a new polyester bottle chip project in Vietnam with an annual production capacity of 250,000 tons in May 2020[11]. - The polyester industrial yarn project in Fujian with an annual capacity of 250,000 tons commenced production in July 2020[11]. - The company plans to invest approximately USD 230 million to establish new polyester film production lines with an estimated annual capacity of 255,000 tons from 2019 to 2021[10]. - The company plans to invest approximately $320 million to establish polyester film production lines from 2020 to 2022, aiming to expand its polyester film business and increase sales volume and revenue[18]. Financial Performance - Revenue for the year 2020 was RMB 8,431,054, a decrease of 10.3% compared to RMB 9,396,866 in 2019[13]. - Gross profit for 2020 was RMB 1,380,345, down 14.6% from RMB 1,616,946 in 2019[13]. - Operating profit decreased by 13.4% to RMB 1,109,242 in 2020 from RMB 1,280,405 in 2019[13]. - Annual profit for 2020 was RMB 781,482, an 8.4% decline from RMB 853,222 in 2019[13]. - Non-current assets increased by 11.4% to RMB 10,808,813 in 2020 from RMB 9,701,232 in 2019[13]. - Current assets rose by 15.9% to RMB 7,873,735 in 2020 compared to RMB 6,791,170 in 2019[13]. - Total equity increased by 10.7% to RMB 7,374,843 in 2020 from RMB 6,660,460 in 2019[13]. - The company's revenue for 2020 was RMB 8,431,054,000, a decrease of 10.3% compared to RMB 9,396,866,000 in 2019[36]. - Sales revenue from polyester filament was RMB 5,970,840,000, accounting for 70.8% of total revenue[36]. - The newly launched ES fiber and polyester industrial yarn generated revenues of RMB 2,357,000 and RMB 199,459,000, representing 0.0% and 2.4% of total revenue, respectively[36]. - The group's annual profit for 2020 was RMB 781,482,000, a decrease of RMB 71,740,000 or 8.4% compared to 2019, with a net profit margin of 9.3%, up from 9.1% in 2019[69]. - The company's net profit attributable to shareholders for the year ended December 31, 2020, was RMB 781,482,000, a decrease from RMB 853,222,000 in 2019[140]. Market Trends and Demand - The company aims to leverage its existing scale and expertise in polyester film manufacturing to capitalize on the growing demand in the market[6]. - The company’s polyester filament products are positioned in the mid-to-high-end market, with applications in various consumer goods including apparel and home textiles[5]. - The textile industry in China is experiencing a recovery with improved domestic demand, as evidenced by a higher operating rate compared to the same period last year, leading to sustained production growth[16]. - The textile industry is expected to benefit from the expansion of domestic demand and consumption upgrades, driven by urbanization and policy changes[16]. - The polyester film market in China is growing steadily, with the company benefiting from its existing scale and expertise in manufacturing polyester films[18]. - The company anticipates stable growth in overall business driven by continuous product innovation and favorable market conditions for polyester products[79]. Technological Innovation and Sustainability - The company has been recognized as a "National Recognized Enterprise Technology Center," enhancing its reputation in the industry[8]. - The company has a strong focus on developing new environmentally friendly polyester film products applicable in multiple fields[6]. - The company emphasizes technological innovation and has achieved full-process intelligent automated production, enhancing product quality and production capacity, especially during the pandemic[16]. - The company is focused on controlling upstream resources and increasing the proportion of recycled products, including biodegradable and bio-based materials[17]. - The company has established a research and development team of over 600 senior technicians, focusing on market-oriented new product development[31]. - The company has obtained 123 national patents and has applied for an additional 133 patents, with 105 patented products currently in production and sales[35]. - The company signed a strategic cooperation agreement with China Mobile for 5G technology, enhancing production efficiency and reducing labor costs[33]. - The company is committed to sustainable development and has focused on enhancing product quality and environmental safety in response to increasing regulatory demands[29]. Corporate Governance and Compliance - The company has complied with all applicable provisions of the corporate governance code as of December 31, 2020[86]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, responsible for corporate strategy and development[88]. - The company has adopted a board diversity policy to ensure a balanced mix of skills, experience, and perspectives among board members[99]. - The company has procedures in place for shareholders to request special meetings and propose agenda items[120]. - The company has established written policies and procedures for internal controls applicable to all operating units, ensuring efficiency in risk management and internal controls[118]. - The company has a dedicated independent internal audit department that assists the board in reviewing the internal control system[118]. - The company has implemented recommendations from the internal control review to address identified weaknesses[84]. - The audit committee reviewed the accounting policies and consolidated financial statements for the year ended December 31, 2020[195]. Shareholder Information and Stock Performance - The board does not recommend any final dividend for the year ended December 31, 2020[150]. - The company repurchased a total of 2,174,000 shares during the year, with the highest price per share at HKD 4.00 and the total amount paid approximately RMB 6,910,000[147]. - The total issued shares of the company as of December 31, 2020, were 2,119,924,000[160]. - The company has not made any changes to its memorandum and articles of association during the year ended December 31, 2020[124]. - The company will announce updates to shareholders and potential investors in a timely manner according to listing rules[199].

Production Capacity and Investments - As of June 30, 2020, the domestic design capacity for polyester filament of the group is 2,726,400 tons per year, with 1,005,000 tons for fully drawn yarn and POY, and 711,400 tons for stretch yarn[6]. - The design capacity for polyester products is 255,000 tons per year, including 182,500 tons for BOPET film, targeting the high-end functional polyester film market in China[6]. - The group has established a subsidiary in Vietnam with a design capacity of 348,300 tons for polyester filament, including 92,800 tons for fully drawn yarn and POY, and 250,000 tons for PET bottle chips[7]. - An investment of approximately $185 million is being made to establish a production line for industrial polyester yarn, with an estimated capacity of 250,000 tons per year, which commenced commercial production on July 17, 2020[7]. - The group is investing about $230 million to establish a production line for polyester film, expected to reach a total capacity of approximately 255,000 tons per year by 2021[7]. Financial Performance - Revenue for the first half of 2020 was RMB 3,614,662, a decrease of 22.1% compared to RMB 4,639,037 in 2019[12]. - Gross profit dropped to RMB 507,198, reflecting a decline of 34.7% from RMB 776,742 in the previous year[12]. - Operating profit decreased by 43.0% to RMB 342,752, down from RMB 600,995 in 2019[12]. - Net profit for the period was RMB 225,366, a decline of 44.1% compared to RMB 403,324 in 2019[12]. - The gross margin decreased to 14.0% from 16.7% in the previous year[12]. Assets and Liabilities - Non-current assets increased by 14.1% to RMB 10,244,050 from RMB 8,978,200 in 2019[12]. - Current assets rose significantly by 60.8% to RMB 8,398,864, up from RMB 5,223,096 in the previous year[12]. - The group’s total liabilities amounted to RMB 11,759,249,000, with a debt-to-equity ratio of 170.8% as of June 30, 2020[58]. - Cash and cash equivalents increased to RMB 392,803,000 as of June 30, 2020, up RMB 191,405,000 or 95.0% from RMB 201,398,000 on December 31, 2019[57]. Market and Sales Performance - Sales revenue from polyester filament was RMB 2,803,279,000, accounting for 77.6% of total revenue, while polyester product sales were RMB 811,383,000, accounting for 22.4%[28]. - Revenue from polyester filament products decreased by RMB 903,474,000, or 24.4%, compared to RMB 3,706,753,000 in the first half of 2019[29]. - The average selling price of polyester filament was RMB 8,230 per ton, down RMB 2,230, or 21.3%, from RMB 10,460 per ton in the first half of 2019[29]. - Polyester product sales revenue for the review period was RMB 811,383,000, a decrease of RMB 120,901,000 or 13.0% compared to RMB 932,284,000 in the same period of 2019[30]. - Overseas sales revenue rose by 18.9% to RMB 639,228,000, increasing its share of total revenue from 11.6% in the first half of 2019 to 17.7% in the review period[34]. Research and Development - R&D expenses amounted to RMB 128,281,000, representing 3.5% of total revenue, focusing on improving product quality and production efficiency[26]. - The company aims to strengthen its industry position through high-value-added products and technological innovation[26]. Impact of COVID-19 - The textile industry is facing significant external challenges due to the global pandemic, impacting both domestic and international demand[22]. - The COVID-19 pandemic has introduced uncertainty into the operating environment, leading to a decline in product sales and a decrease in profits for the six months ended June 30, 2020[124]. - The company is actively monitoring the impact of the pandemic and has implemented emergency measures, including cost control and maintaining good communication with banks to mitigate liquidity risks[124]. - Management remains optimistic about the long-term prospects of the company despite the challenges posed by the pandemic[124]. Shareholder Information - As of June 30, 2020, the total issued and paid-up share capital as of June 30, 2020, was 2,122,098,000 shares, with a nominal value of HKD 0.01 per share[113]. - Mr. Shi Tianyou holds 643,720,000 shares, representing 30.33% of the company's issued share capital[128]. - Mr. Wu Jinbiao owns 136,820,000 shares, accounting for 6.45% of the company's issued share capital[128]. - Hong Kong Rong'an Investment Co., Ltd. holds 787,980,808 shares, which is 37.13% of the company's issued share capital[133]. - The company has a total of 300,000,000 shares pledged to the Export-Import Bank of China, representing 14.14%[135].