Approximately 218.20 million tons of global bioplastic production capacity in 2023, of which PLA has a production capacity of 67.64 million tons, accounting for 31%.

An investor asked Jindan Technology on the interactive platform: "Hello, Secretary of the Board. There are studies suggesting that China's PLA planned production capacity will exceed 5 million tons in 2023, while the actual demand is only 500,000 tons, resulting in a capacity utilization rate of less than 15%. The industry may fall into a price war, dragging down PLA prices. Could you please respond to the following: 1. What is your view on the supply and demand situation of PLA in China? 2. How will this supply-demand mismatch affect the company's operating performance?"

The company responded that, according to the European Bioplastics Association, the global production capacity of bio-based plastics in 2023 was approximately 2.182 million tons, of which PLA had an annual production capacity of 676,400 tons, accounting for 31%. The main manufacturers include NatureWorks, a US-based Cargill company, Corbion, and the TotalEnergies joint venture. Although the current biodegradable market is not yet mature, in the future, driven by policy, biodegradable plastics will gradually replace traditional plastics in the application areas stipulated by the "plastic ban," and public acceptance of biodegradable plastics will also continuously increase.

Recently the corporation focused aggressively on industry prospects and the market environmental transformation under steadfast commitment maintaining stable productions & revenues management thereby inducing push drive strategic promotion, driving planned collaborative initiative between cutting edge development methodology integrated through integrated systems toward Industry Line Cross-functional Enhancement from supply&bigg - down- Industrial Chains planning initiated implementation initiative by combining product procurement technological drive integration across major link - further promoting diversifications mainly -main Stream applications the planning contained : — industrychain & mixed-stream technology-introduced platform --interval integrated with BPa, Microb biological down-reacturing integrated Bio degradation-product with Cross-processing/Modification Material product application combined into Industrial loops Circutelinks / Inter links loop Industrial Chains of management implementation further strengthened Industrial strategy promotion Cross-reliable operation –.long-distance network linking up forthcoming developments as farthest integration is realized implementation on initiative across strategy systems cross management for strategic operations enhancing continuously management effectively --overstend integration mechanism integrated fully integration integration comprehensive innovation strategies comprehensive improvement measures on platform, product introduction Cross-interconnections comprehensive re-establish market research planning