Sinopharm Tech Holdings Ltd.  has entered into product sales agreements with a branch of PetroChina Company Limited and TEDA Filters Co.,Ltd.to purchase polypropylene meltblown nonwoven fabrics. The signed product sales agreements include the purchase of meltblown fabric from PetroChina Branch and TEDA Filters to the production needs of the group and to fulfill the actual purchase order quantity. The estimated procurement schedule is 337 tons within the next five months, and subsequent procurement may increase on this basis. Based on the estimated procurement schedule of the meltblown fabric, more than 300 million masks can be produced by the end of 2020.

One of the suppliers of the meltblown fabric, the PetroChina Branch, is a branch of PetroChina Company Limited who is the leading company in China's oil and gas industry, with ownership of petroleum resources, and manufacture of its own industrial chain of polypropylene raw material. The other meltblown supplier, TEDA Filters, is a state-owned enterprise and one of the earliest companies specializing in the manufacture of the 

Both meltblown suppliers have strong background, high product quality and stable output. This cooperation will ensure that the group has a stable source of high-quality core raw materials, and is in line with the group's business tenet of strict adherence to quality. The suppliers are able to provide high-quality meltblown fabric to the group with bacterial filtration efficiency and particle filtration efficiency at or above 99% and the finished masks are expected to meet the higher standards of ASTM F2100.

Since the establishment of the group's first production plant through joint venture in mainland China in February 2020, the commercial blueprint of self-owned mask production lines has rapidly spread. This has allowed the group to quickly establish a second joint venture of medical protective products in the mainland. At the same time, the group set up several mask factories in Hong Kong and completed the construction of cleanrooms, production equipment commissioning and realization of large-scale production.