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Weiqiao Textile Company Limited ("Weiqiao Textile" or the "Company") together with its subsidiaries (collectively, the "Group") principally engaged in the production, sale and distribution of cotton yarn, grey fabric and denim. Having seized the opportunties to develop in China during the past 10 years, Weiqiao has grown rapidly and become a large scale enterprise. Using state of the art machinery, we have now become one of the dominant enterprises in the global cotton textile market. At present, as a large-scale cotton textile manufacturer, we are one of top-500 enterprises of China and one of top-26 super-large enterprises of Shandong province.

Weiqiao Textile is located in Shandong Province, the second largest cotton-producing province of China. There are a total of 4 production areas, including Weiqiao Production Base (The Second and The Third Production Areas), Binzhou Production Base (The First Production Area and The Second Production Area of Binzhou Weiqiao Technology Industrial Park), Weihai Production Base (Weihai Weiqiao Textile Co., Ltd. ("Weihai Weiqiao") and Weihai Weiqiao Technology Industrial Park Co., Ltd. ("Weiwei Industrial Park")) and Zouping Production Base (The First Industrial Park, Second Industrial Park and the Third Industrial Park of Zouping ). By December 31, 2017, our group had approximately 55,000 employees. We work 24 hours a day and 365 days a year. In 2017, we produced approximately 394,000 tonnes of cotton yarn, 921,000,000 meters of grey fabric and 74,000,000 meters of denim. At present, Weiqiao is in a good position in the market because of its enormous economies of scale. We are a manufacturer of cotton materials, which give us advantages in the production of cotton textile products. We now can produce over 2,000 kinds of cotton textile products. They are sold in China and in the international market, with "Weiqiao" as trademark.

Major customers include a few well-known texitile enterprises and franchisers, such as Futai Textile ,Jinxing Textile and Yougor Group. We had a total of domestic customers in the PRC, most of them located in Southern China and Eastern China where many large-scale textile and garment companies are located.

In the long term, China¡¯s consumption of textile and apparel will be continuously boosted by urbanization and ¡°income doubling plan¡±, and demand will shift to middle and high-end apparel products. We will follow the demand trend. While proactively expanding our market and reducing inventory levels, we will continue to increase production efficiency and reduce the labour used per 10,000 spindles through optimizing operating process coupled with technical innovations and upgrades. We will continue to implement structural adjustments, promote high quality development, accelerate the shift in growth drivers and promote intelligent manufacturing to improve the Group¡¯s development quality and profitability.
 
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