May 13, 2019, Xining, Qinghai------A grand ground-breaking ceremony was held in Ganhe Industrial Park for launching the construction work of Zhongfu Shenying Xining��s new carbon fiber production site, with whose 20,000 tons added volume, CNBM��s carbon fiber production capacity will be increased to 30,000 tons. The new site was expected to be forged as a world-class carbon fiber production center with competitiveness worldwide, to consolidate the supply chain of home-made high-performance carbon fiber, to accelerate the prosperity of China��s composites industry, and to improve the international influence and competitiveness of home-made carbon fiber.

Zhongfu Shenying Xining, located in Ganhe Industrial Park, Xining Economic Development Zone, was established jointly by two shareholders, Zhongfu Shenying Carbon Fiber Co., Ltd. and Xining Economic Development Zone Investment Holding Group Co., Ltd. in March, 2019, covering a land space of 132 acres and with registered capital of 600 million Yuan. The new site, costing an investment of 5 billion Yuan, expecting an overall capacity of 20,000 tons carbon fiber and the precursor as needed, will be constructed in two phrases. The first phrase will compose of two periods. The first period from 2019 to 2020 will see 6,000 tons capacity released and the second period from 2020 to 2022 will have another 4,000 tons capacity completed. The second phrase, lasting from 2022 to 2025, will contribute to another 10,000 tons capacity. By the end of second phrase, Zhongfu Shenying Xining will have 8 precursor production lines, 12 carbon fiber production lines, boasting a revenue before tax of 3 billion Yuan and meanwhile leaving 56 acres land space for future expansion. Acrylonitrile, an important raw material for producing carbon fiber, will be supplied by Qinghai Damei Coal Industrial Co., Ltd., another company located in Ganhe Industrial Park.

Carbon fiber industry is embracing a new era of fast development, marked by robust market demands. The construction of Zhongfu Shenying Xining��s new site is a strategic arrangement of China Composite Group Co., Ltd., aiming at exploring new markets, extending its value chain, strengthening its connections with upstream suppliers and downstream users, and improving China��s homemade carbon fiber industry.