Zhong Tai International Development (HK) Limited: The Core Offshore Trading & Cross-Border Capital Operation Platform of Zhongtai Chemical

1. Basic Corporate Profile: Wholly-Owned Overseas Offshore Entity of A-Share Listed Firm

Zhong Tai International Development (HK) Limited is a private limited company fully funded and owned by Xinjiang Zhongtai Chemical Co., Ltd. (Stock Code: 002092). All equity and registration information is sourced from the listed firm’s official announcements and public records of Hong Kong Companies Registry, featuring objective and verifiable facts.

1.1 Establishment Background & Timeline

The company was incorporated on 18 February 2015, pursuant to the overseas investment resolution passed by the board of directors of Xinjiang Zhongtai Chemical in the same year. At that time, the group kept expanding its production capacity of PVC, caustic soda and chemical fibers with surging import and export volume. To build overseas capital channels and expand global trade networks, the group decided to set up an offshore operation platform based in Hong Kong.

1.2 Core Registration Information

• Hong Kong Company Registration Number: 2205375; Business Registration Certificate No.: 64434728; active in normal operation with no record of default or deregistration
• Registered capital equivalent to RMB 692 million
• Office Address: Room 1101, 11/F, Tak Wai House, 8-20 Nanking Street, Jordan, Kowloon, Hong Kong, with an additional liaison office at Harbour City
• Equity Structure: Wholly funded and controlled by A-share listed Xinjiang Zhongtai Chemical without any third-party shareholdings, serving as the exclusive overseas business carrier of the group

1.3 Strategic Purposes for Incorporation

Leveraging Hong Kong’s advantages of free capital circulation, low tax regime, mature international financial supporting facilities and status as a global trade information hub, the company collaborates domestically with Xinjiang Zhongtai Import and Export Co., Ltd., and connects globally with chemical buyers and overseas raw material suppliers. It fulfills three core functions: trade split settlement, cross-border financing and exchange rate risk hedging.

2. Core Trading Business: Two-Way Cross-Border Circulation of Full Industrial Chain Chemical & Textile Raw Materials

The company specializes in import and export trading of chemical and textile raw materials, forming coordinated domestic and overseas dual-line operation with Xinjiang Zhongtai Import and Export Co., Ltd. The two entities feature clear division of labor and complementary businesses, with all trading categories fully aligned with upstream and downstream products of Zhongtai Group’s industrial chain.

2.1 Export Business: Offshore Distribution of Self-Manufactured Industrial Products

With Hong Kong’s identity as an international trade hub, the company undertakes offshore overseas sales of the group’s core chemical and textile products. Its key export categories and target markets are specified as below:

1. Chlor-alkali chemical products: Full series PVC resin, ion-exchange membrane flake/pearl/liquid caustic soda, the largest export segment by revenue. Main destinations include Southeast Asia, South Asia and Africa such as Vietnam, Pakistan, Nigeria, Uganda, the Philippines and India. Shipping data shows PVC and caustic soda together account for over 27% of the company’s total export turnover.
2. Textile chemical fiber raw materials: Viscose staple fiber, viscose yarn, polyester staple fiber, polyvinyl alcohol, textile lubricants and auxiliaries. It fulfills export orders supporting Danghara Textile Industrial Park in Tajikistan and supplies textile manufacturers in Turkey, Russia and Southeast Asia.
3. Other industrial raw materials: 1,4-butanediol (BDO), sodium hydrosulfide, sulfur and other fine chemicals, supplied to small and medium-sized global chemical processors via offshore transfer trade.

2.2 Import Procurement Business: Securing Raw Material Supply for Domestic Production

As Hong Kong-based offshore procurement window, the company centrally imports raw materials essential for the group’s domestic production to cut tariff costs and cross-border settlement expenses for direct mainland imports:

1. Upstream textile raw materials: Wood pulp and dissolving pulp imported from Canada and Brazil, the core feedstock for viscose production lines
2. Chemical supporting supplies: Ion exchange membranes, special chemical catalysts, production additives and spare parts for large-scale chemical equipment
3. Market-oriented diversified bulk commodities: Non-ferrous metals, chemical fertilizers, covering both internal group consumption and third-party re-trading business

2.3 Objective Business Scale Data

Three years after its founding, the company’s annual trading revenue exceeded RMB 2 billion. As of 2025 cross-border shipping records, it has completed 635 export shipments and 10 bulk raw material import orders, establishing stable channels with buyers across nearly 50 countries covering Southeast Asia, Central Asia, Africa and South America.

3. Core Function 1: Offshore Cross-Border Financing Platform to Optimize Global Capital Costs

Supported by Hong Kong’s sophisticated international banking system, the company undertakes overall overseas capital management, letter of credit settlement and low-cost cross-border financing for the group. All operation modes are disclosed in the group’s corporate chronicle and listed company guarantee announcements.

1. Dominant international L/C settlement: 90-day usance letters of credit serve as primary settlement tools for overseas procurement. Credit lines from local Hong Kong banks simplify cross-border document procedures.
2. Low-cost overseas financing channels: As a Hong Kong registered enterprise, it accesses credit facilities with lower rates offered by local foreign and Chinese bank branches in Hong Kong, minimizing exchange losses from cross-border capital transfers of the mainland parent company.
3. Exchange rate risk hedging: Multi-currency (USD, EUR, HKD) capital reserves via Hong Kong offshore accounts offset exchange rate volatility risks of bulk commodity international trade and stabilize the group’s import & export exchange gains and losses.
4. Integrated domestic-overseas capital linkage: Seamless connection with Xinjiang Zhongtai Import and Export Co., Ltd. and the group’s headquarter financial system to form a closed-loop capital management system covering export proceeds collection and overseas procurement payment.

4. Core Function 2: Coordinated Dual Domestic-Overseas Foreign Trade Structure to Improve Belt and Road Cross-Border Supply Chain

The group adopts a dual foreign trade framework combining mainland-based trade window and Hong Kong offshore platform, with differentiated operation to generate synergy without internal conflict:

1. Xinjiang Zhongtai Import and Export Co., Ltd.: Rooted in China (Xinjiang) Pilot Free Trade Zone, focusing on long-term bulk land trade via China-Europe Railway Express and China-Kazakhstan border ports targeting Central Asia and Russia, responsible for mainland customs clearance, overland logistics and domestic client liaison.
2. Zhong Tai International Development (HK) Limited: Based on Hong Kong’s international shipping and financial hub, specializing in seaborne ocean orders, Southeast Asian & African maritime markets, offshore entrepôt trade and cross-border financial settlement.

Belt and Road Synergy Value

The dual model covers all cross-border logistics channels including land and sea routes, fully serving markets along the Silk Road Economic Belt and the 21st Century Maritime Silk Road. Domestic manufacturing capacity expands ocean markets at lower costs through the Hong Kong platform, while scarce overseas raw materials are centrally purchased via Hong Kong before being delivered to Xinjiang production bases, enabling two-way circular allocation of global industrial chain resources.

5. Operational Positioning & Industrial Value

1. Supplementary overseas channel for capacity consumption: Zhongtai Group boasts massive production capacity of PVC, caustic soda and chemical fibers. While the Xinjiang-based foreign trade subsidiary focuses on land-based Central Asian markets, the Hong Kong company takes ocean-going overseas orders to absorb excess production capacity and expand global sales reach.
2. Centralized overseas raw material procurement window: Consolidated negotiations with global wood pulp and chemical equipment suppliers in Hong Kong reduce costs from scattered individual purchases.
3. Pilot carrier for the group’s internationalization strategy: As the group’s sole wholly-owned Hong Kong offshore trading entity, it undertakes overseas market research, client development in emerging regions and cross-border trade model testing, providing market data to support the group’s subsequent layout of overseas industrial parks and global distribution networks.
4. Compliant offshore trade benchmark: The company strictly abides by Hong Kong trade regulations and mainland import-export supervision policies, with complete retention of transaction documents, capital flows and cargo records. It stands as a standardized operation model for large chemical manufacturers in Northwest China featuring "mainland manufacturing entity + Hong Kong offshore platform".

6. Future Development Directions

Capitalizing on dual policy dividends of China (Xinjiang) Pilot Free Trade Zone and Hong Kong Free Port, Zhong Tai International Development (HK) Limited will continuously advance two core business lines: first, tapping emerging chemical markets in South America and the Middle East to scale up ocean-going offshore entrepôt trade volume; second, deepening cross-border supply chain financial services in Hong Kong by expanding usage of usance letters of credit and overseas credit facilities to further cut the group’s comprehensive global trade costs. It will sustain close collaboration with Xinjiang Zhongtai Import and Export Co., Ltd. to perfect an international trade network of chemical raw materials covering more than 90 countries worldwide.