Shanghai Ailu was surveyed by six institutions： the photovoltaic backplane market is relatively a blue ocean market at present, and the materials and technology of the backplane are in the process of

　　() The Record Form of Investor Relations Activities was released on January 18th. On January 18th, 2023, the company was investigated by six institutions, including fund companies, securities companies and sunshine private equity institutions.

　　The main contents of investor relations activities are introduced:

　　Q: The company plans to enter the subdivision track of solar photovoltaic backboard. Is there a technical migration and synergy with the company’s original business?

　　A: At present, the company’s business product lines are mainly laid out and developed in the direction of environmental protection and recycling, food safety and new energy track. The company’s existing paper bag products, PS and homogenized (PET) cheese sheets are closely related to food safety, and most of the products meet the sustainable development plan of environmental protection and recycling. This time, the photovoltaic backboard cut into the new energy subdivision track mainly adopts the technology of coating low fluorine paint on both sides of PET and drying to form a film. The company has mastered its own core technology, production technology and R&D capability in the years of production, R&D and technical iteration of paper bag inner film and cheese film sheet, and has a unique production and management mode in the whole process of printing, drying, tape casting, extrusion and compounding. The above production mode and technology are basically applicable to photovoltaic backplane products, which matches the company’s existing main business.

　　Q: The opportunity to cut into the new energy track, and the preparations for this?

　　A: As early as the end of 2020 and the beginning of 2021, the company set up a product innovation center, which was responsible for market research, research and development of products from 0 to 1, and played a synergistic role with the company’s R&D center.

　　The main responsibility of the product innovation center is to seek the research and development of new products related to the company’s existing main business and with high matching technology from the company’s existing business system. Since 2021, it will mainly develop the environmentally-friendly and recyclable, food safety-related and new energy tracks as mentioned above, in which the new energy track includes the research and development of solar backboards and other products.

　　The company gradually confirmed the project review of photovoltaic backplane business in the field of selecting new energy track that matches the company’s existing main business and technology, visiting potential customers and product development and testing, and introduced professional technical team and sales team to provide technical and sales support for the company.

　　Q: What is the current stage and future progress of photovoltaic backplane business?

　　A: At the beginning of this month, the company reviewed and approved the proposal of setting up a holding subsidiary, Ailu New Energy, to develop photovoltaic backplane business. At present, Ailu New Energy has been established, and the site selection of the factory has been determined. After the Spring Festival, the renovation of the factory, the purchase and commissioning of the first batch of equipment and the delivery of product samples to customers for testing will take about 5-6 months. It will be officially put into production in the second half of 2023, and the capacity launch plan will be dynamically adjusted according to the operation status of the business and the development progress of new products.

　　Q: What is the current competitive pattern of photovoltaic backplanes?

　　A: At present, the photovoltaic backplane market is relatively a blue ocean market, and the material and technology of the backplane are in the process of continuous iteration. Domestic A-share listed companies in this field mainly include (), () and Mingguan New Materials.

　　Q: What is the technical reserve in the direction of photovoltaic backplane?

　　A: At this stage, Ailu New Energy mainly produces low-fluorine CPC backboards and some black backboards. At the same time, it has carried out in-depth research and development on polyolefin backboards and fluorine-free CPC backboards, and will upgrade the products according to the future development path of the backboard market.

　　Q: What is the history of cheese stick sheet? What is the competitive pattern of this kind of packaging? As a domestic enterprise with large-scale production capacity of PS cheese film, what are the competitive barriers?

　　A: When the domestic cheese sticks were first marketed, 100% of the packaged sheets were imported from abroad. The import of foreign sheets had a long delivery period and a short account period, which limited the business development of domestic cheese sticks customers. In this context, in April 2018, the company received the related product packaging development demand of (). The customer hopes to localize the packaging film of direct packaging "cheese sticks", and the delivery time and product price are expected to be improved compared with foreign suppliers. After receiving the customer’s request, the company set up a special R&D team to carry out research. After several pilot tests, PS sheets were finally developed at the end of 2018 and began to be supplied in batches. After continuous technical iteration, formula upgrade and homogeneous material development, the product pattern of PS cold chain, room temperature cheese sheet and recyclable homogenized PET cheese sheet has been formed.

　　At present, in addition to the company’s PS sheet and homogenized sheet, there is also a kind of PVC sheet on the market. Because the material itself contains chlorine, the company has not carried out corresponding research and development. At present, the company’s cheese stick customers mainly include head dairy companies such as Mykolando, Mengniu, Yili and Dr. Cheese.

　　The main advantages include: the first-Mover advantage of large-scale production, the advantages of food safety and GMP production environment, the production advantage of high output and low scrap rate in the whole process, the credit policy advantage of reasonable payment method and accounting period, and the patent right coverage advantage.

　　Q: Is there any difference between domestic and foreign competition patterns of industrial paper packaging?

　　A: There is a big difference between domestic and foreign competition patterns in paper bag business. The entry threshold of domestic paper bag market is relatively low, and it is relatively scattered. From paper bags with hand-folded bottom to paper bags produced in large scale by high-precision equipment, the technical level, production technology and management mode are uneven. The company maintains stable cooperation with more than 600 customers every year, and most of them are the world’s top 500 enterprises in chemical industry, building materials, food (dairy products) and pharmaceutical intermediates, as well as listed companies at home and abroad, and they have a certain voice in the field of high-end paper bags.

　　The foreign paper bag market is relatively concentrated, and the head suppliers mainly focus on the paper bag production in a certain subdivision of the city. For example, MONDI mainly focuses on paper bags in the fields of cement, building materials and chemical industry; AMCOR mainly focuses on the production of paper bags such as milk powder.

　　Q: What is the way for the company’s industrial paper packaging to increase its market share in the future?

　　A: There are two main ways: one is to introduce corporate customers, participate in exhibitions, participate in bidding to enhance the business volume of existing customers and explore new customers; The other way is for the customers the company has cooperated with in recent years to integrate the industrial chain (acquisition and merger) and expand their own production capacity. In view of the demand of head customers for the quality and supply of high-end paper bags, this new market capacity will also be included in the company’s output.

　　Q: What is the future capacity planning of industrial paper packaging and cheese film sheets?

　　A: Based on the future demand judgment of domestic and foreign customers’ paper bag products, the company plans to issue 500 million convertible bonds this time, mainly for the capacity expansion of paper bag business, of which 200 million will be used to purchase paper bag production lines. In terms of cheese stick sheet business, the company’s current production capacity can meet the needs of existing cheese customers, and there is no plan to further expand the production capacity for the time being;

　　Shanghai Ailu Packaging Co., Ltd. is mainly engaged in the research and development, design, production, sales and service of industrial paper packaging, plastic packaging and intelligent packaging systems. The company’s main products include paper packaging, plastic packaging and intelligent packaging system. In 2017 and 2019, it was rated as "Top 100 Private Manufacturing Enterprises in Shanghai", in 2017, it was rated as "Top 50 Paper Packaging Enterprises in China" by China Packaging Federation, and in 2020, the company was selected into the list of "Top 100 Printing and Packaging Enterprises in China".

　　Details of participating institutions are as follows: