On October 28th, the polyester film production line project for capacitors of TSF Electronic Materials Co., Ltd., located in Tongfeng Electronic Industrial Park, Tongling Economic and Technological Development Zone, officially started construction. TSF Electronic Materials Co., Ltd. is a joint venture established by our company and SKC, a subsidiary of SK Group, a Fortune 500 company in South Korea. The polyester film production line for capacitors that has started construction this time is the first phase project of TSF Company, with a total investment of 28.0293 million US dollars. It is expected to be completed and put into operation by the end of 2006. Tang Shiding, Deputy Secretary of the Municipal Party Committee, Wang Ren, Deputy Director of the Provincial Quality and Technical Supervision Bureau, Wang Gangying, Deputy Mayor, and other leaders at all levels, as well as leaders of the Sino Korean joint venture, attended the groundbreaking ceremony on that day.

TSF Company has built four polypropylene film production lines for capacitors, making it the world's largest producer of similar products. In order to further accelerate the industrial scale process and improve the overall level of capacitor film manufacturing, the company plans to expand its product range and enter the polyester film product industry. To this end, the company held cooperation talks with SKC, the world's third-largest polyester film producer from South Korea. After nearly two years of negotiations, the two parties officially signed a cooperation agreement on November 9, 2004 and jointly invested 24 million US dollars to establish a new joint venture company - TSF Electronic Materials Co., Ltd. The registered capital of the company is 12 million US dollars, of which SKC invested 3 million US dollars in cash, accounting for 25% of the registered capital.

TSF Electronic Materials Co., Ltd. combines the strengths of TSF Electronics and SKC, and through complementary advantages, has invested in the construction of a polyester film production line project with an annual output of 2600 tons of 3-12 microns capacitors in the first phase. The production line was jointly designed by experts from China and South Korea, mainly using SKC company's production process and technology, while absorbing the successful experience of Tongfeng company's polypropylene film production line for capacitors. It adopts high-quality biaxial stretching equipment from major stretching film equipment suppliers in Germany, France, Japan, South Korea, and China, and independently combines them into a new production line. The preliminary work of the project has been fully completed.

Polyester film products for capacitors are mainly used for DC film capacitors to support home appliances and electronic information product enterprises. This product has high added value and broad market prospects. Currently, it mainly relies on imports, especially for products below 5 microns, which are still blank in China. After the project is launched, it will fill the domestic gap and create a new profit growth point. At the same time, the scale of the company's electronic materials industry will once again soar, and the company's reputation and position in similar product markets in Asia and even the world will be further enhanced. It will also play a certain role in promoting the domestic capacitor film manufacturing field.

Chen Shengbin, the chairman of the company, stated at the ceremony that with the construction and development of the project, TSF Company will become the most advanced and competitive polyester film production base and monopoly enterprise in China. Here, we hope that the builders of the TSF PET project can closely cooperate, strengthen division of labor and cooperation, overcome various difficulties, adhere to high standards, high starting points, and high quality, seize time and progress, and build the TSF PET production line as soon as possible.