In order to accelerate the localization of key photoelectric display materials, on March XX, 2022, Red Avenue New Materials Group Co., Ltd. (Red Avenue, 603650, SH) signed an equity transfer agreement with Suzhou Polytri Material Technology Co. (abbr. as ‘Polytri’ below) to purchase 12% equity of Polytri. Subsequently, Red Avenue New Materials (Company) and Polytri intend to jointly build multi-category polyimide (PI) resin and film production lines to forge ahead the R&D-industrialization and commercialization of series of products including "yellow PI, CPI, black PI, PSPI" and help the sustainable development of "downstream" Chinese display industry (especially flexible display industry).

Polytri has the leading know-how and R&D-production force in the field of PI materials, holds a number of independent intellectual property rights, and is very experienced methodologically in the synthesis, doping and modification of PI resins. The company is full of confidence in the future cooperation with Polytri. 

"Multi-category special and functional electronic chemicals" is one of the Red Avenue's core products in the future. Our’s goal and responsibility is to help the stable development of China's display industry. Our consistent philosophy is to support the incubation of new technologies, support the research, development and industrialization of specialized materials for display" 

Polytri's PI products and the Red Avenue's display photoresist products are used by the same downstream customers. As the two companies all attach importance to the fundamental research and market orientation, we firmly believe our collaboration is  in line with the future development of China's display industry, makes us  bigger and stronger, enables us to achieve our far-reaching goals.

Note 1. About Red Avenue Electronics, a subsidiary of Red Avenue New Materials:

Red Avenue Electronics is determined to intensively cultivate the field of special and functional electronic chemicals, deeply aware of the responsibilities and missions shared by industry colleagues, keenly grasping the importance of talents and the powerful internal driving force of basic research of materials science, and facing the future of integration of functional material genomics and international cutting-edge intelligent manufacturing. "Red Avenue Electronics" takes the responsibility of creating "open cooperation, mutual benefit and win-win, production-learning-research-use integration ecosystem", focusing on high-quality mass production, "micro-innovation", "modification research-formulation accumulation" and manufacturing cost management of all kinds of photoresists, matching reagents, advanced resin materials, pastes and derivative film materials; Committed to the systematic development of electronic materials and raw materials, information exchange and talent gathering, we are willing to visualize, industrialize and carry forward the intellectual achievements of super-class experts and research teams through corporate behavior under the current rare development opportunities, and take action to contribute to the localization and international application of cutting-edge materials in China's display field, "Microelectronics-Nanoelectronics" and integrated circuit field.

Note 2. About "Red Avenue New Materials”:

The company serves the needs of customers with chemical "knowledge"; takes the practice of “eco-friendly production and eco-friendly products" as the development purpose; and takes "innovation and challenge, honesty and integrity, respect for individual and social responsibility" as the core values. Relying on the innovative inheritance, cohesive team, lean manufacturing products, complete technical support system and solutions supported by data science, we will continue to maintain the good development momentum of special materials business for automobiles/tires, complete the multi-strategic layout in the direction of high-end electronic chemicals with fearlessness, and continue to exert ourselves in the field of all-biodegradable materials business with leading technology, seek win-win results with our customers and partners in the ever-changing market competition, and create a new situation of China's high-end manufacturing industry.

Forward-looking statement

This press release includes forward-looking statements. Forward-looking statements are based on the company's beliefs and some assumptions about the future, not statements of historical facts and actual events. Due to various risks, uncertainties and other factors, there may be significant differences between the actual results and the forward-looking statements. Therefore, please note that reliance on any forward-looking statement involves known and unknown risks. All forward-looking statements contained in this press release are subject to the cautionary statements set forth in this section. All information contained in this press release is based solely on the date of this press release, and is based on the assumptions of that date only. Unless otherwise required by law, the company is not obligated to update these forward-looking statements.