Shiming Technology (300522): Signing Strategic Cooperation Agreement With China Textile Institute

300522.SZ announced that in order to better play the advantages of both sides and achieve mutual benefit and common development, the company agreed to establish a long-term strategic cooperative relationship with the China Textile Science Research Institute Co., Ltd. ("China Textile Institute"), and signed the strategic cooperation agreement in November 20, 2019. The main contents of the agreement are as follows:

(1) the main body of agreement

Party A: China Textile Science Research Institute Limited; Party B: Suzhou world famous Polytron Technologies Inc

(two) background of agreement

In 2018, the company identified the textile coloring industry as the strategic core industry after the paint industry. The company continues to make efforts from many aspects such as green environmental protection, industrial ecology and so on, to promote the technological innovation and product development of various fiber pre coloring, textile green dyeing, differential fiber functional materials and other industries, and has the leading R & D, application and market opening capability of textile dyeing related products. In 2019, the key technology of nano pigment preparation and dyed wet spinning of raw liquid obtained by the company and Jiangnan University declared the certificate of scientific and technological achievements issued by the Federation of Chinese textile industry. The technology reached the international advanced level. The key technology of the preparation and application of nano pigment capsule in the printing and dyeing jointly announced by the company and Jiangnan University, etc., obtained the certificate of scientific and technological achievements issued by the Federation of Chinese textile industry, and the technology reached the international leading level.

China Textile Science Research Institute Co., Ltd. is a key enterprise engaged in comprehensive research and development and industrialization of new and high technology in China's textile industry. It has excellent resources in research and development, manufacturing, standards, testing and certification of new fiber materials, and has the leading technology development and innovation ability in products and technologies of high quality raw liquid coloured fibers and other products.

The company and China Textile Science Research Institute Co., Ltd. are all members of the strategic alliance of technological innovation of chemical fiber industry. Since 2016, they have participated in science and technology projects such as "large-scale production technology of regenerated cellulose fibers with high efficiency and low consumption". The two sides have established good cooperative relations in the field of textile products and technology development.

In order to further deepen the cooperative relationship, give full play to the advantages of both sides and establish a comprehensive cooperation mechanism, through friendly consultation between both sides, we have agreed to establish a comprehensive strategic cooperation relationship with the research and development, production and marketing of polymer spinning technology, special color paste, color oil and fiber Masterbatch, functional masterbatch and so on.

(three) content of cooperation

1. Cooperative development of polyester spinning and polyamide raw materials coloring technology, special coloring and color oil.

(1) set up a professional cooperative team, responsible for the docking of business and technology, ensure the smooth development of the technology project; Party A is responsible for developing the coloring polyester and polyamide polymerization spinning technology, ensuring that the relevant technologies can achieve stable operation on 1000 tons line; Party B is responsible for developing and producing polyester and polyamide polymerized spinning special color paste and color oil products; the two sides agree to actively cooperate with each other in market promotion, carry out regular product plan communication, and jointly launch solutions for Industry and products to jointly promote the market.

(2) the cooperation between the two sides in the coloring of polyester and polyamide raw liquor is exclusive cooperation. In the process of cooperation, the third party partners can only be introduced through written consent from both sides.

(3) according to the actual situation of the market promotion of special color paste and color oil products, the two sides may discuss and discuss the establishment of a joint venture company, which is responsible for the research, production and sale of polyester spinning and polyamide raw material coloring technology, polymerization spinning technology, special color paste and color oil, and B has a priority stake in the above-mentioned joint venture company, and the establishment of a joint venture shall be subject to a separate cooperation agreement between the two parties.

2, carry out strategic cooperation of fiber masterbatch and functional masterbatch.

The two sides have carried out cooperation to promote the smooth development of "fiber plastic new material production project". We should strengthen resource sharing, complement each other with technology, and push forward the transformation of achievements. We will carry out comprehensive cooperation in technological R & D, production and sales of products such as fiber masterbatch and functional masterbatch, and jointly promote the upgrading of domestic industry quality and technological progress.

3, Party A can hold Party B's shares according to the actual situation and become party's strategic investment partner. Specific contents must comply with the requirements of relevant laws and regulations.

4. The two sides agree that the original intellectual property rights (achievements) are owned by the original units. If necessary, one party can be implemented and the licensee can use them after signing the license agreement. Based on this cooperation agreement, the intellectual property rights (achievements) generated by the cooperation shall be jointly owned by both parties, and the specific contents shall be agreed separately by the two parties.

This cooperation is a comprehensive cooperation between the company and the China Textile Science Research Institute Limited in terms of technology research and development, product application, scientific research talents and market promotion of textile fiber raw liquor coloring. It is beneficial for both sides to give full play to their respective advantages, strengthen resource sharing and achieve complementary advantages, and form a synergistic innovation system of the raw liquid coloring fiber industry chain, which is closely cooperating with industry, University and Research Institute, and jointly promote the technological innovation, product application and market promotion of high quality raw liquid coloring fibers and other products. It has played a positive role in promoting the overall performance of the company in the future and the impact of the industry.

The company is facing the world and seeking new ideas for cooperation and development in the new situation. Textile fiber technology and products play an important strategic role in the future development of the company as an important part of the layout of the company's color industry chain. The strategic cooperation with the China Textile Research Institute Co., Ltd. will rapidly promote the technological innovation and industrialization application of the fiber dyeing technology, cooperate with the new products of the company's textile and fiber industries, enhance the contribution ability of the textile fiber industry, promote the layout of the company's color industry chain, build a new color material industry base, and gradually create a closed loop of the environmental color page, so as to boost the company's strategic goal of achieving the "global first-class color service provider".