Hongbai New Materials recently announced that its holding subsidiary, Thai Hongbai, plans to increase its capital by 335 million Thai baht to accelerate the expansion of the Thai and Southeast Asian markets and improve the overseas functional silane industry supply system. This measure not only demonstrates Hongbai New Materials' strategic layout in the international market, but also reflects its optimistic expectations for the future market prospects.
Thai Hongbai is a holding subsidiary jointly established by Hongbai New Materials and Thai investors Polapat and Vararat, with a registered capital of 5 million Thai baht. After this capital increase, the registered capital of Thai Hongbai will increase to 34 million Thai baht, and the newly added registered capital will be subscribed by existing shareholders according to their shareholding ratio. Among them, Hongbai New Materials subscribed for an additional registered capital of 301.5 million Thai baht, while Polapat and Vararat subscribed for 16.75 million Thai baht each.

The capital increase funds will mainly be used to accelerate the production and construction of functional silane projects in Thailand. The promotion of this project will not only help Hongbai New Materials expand its business in the Southeast Asian market, but also further enhance its competitiveness in the global functional silane industry.
This strategic move by Hongbai New Materials is closely related to its revenue composition from January to December 2023. Data shows that the chemical industry accounts for as much as 96.98% of Hongbai New Materials' operating revenue. This indicates that the chemical industry is the core business of Hongbai New Materials, and functional silane, as an important branch of the chemical industry, has broad market prospects.
By increasing investment in Thai Hongbai, Hongbai New Materials can not only better meet the needs of the Southeast Asian market, but also leverage Thailand's geographical advantage as an important economy in Southeast Asia to further radiate the entire Southeast Asian market. This is undoubtedly an important strategic layout for Hongbai New Materials.
In addition, this move by Hongbai New Materials also reflects its keen insight into future market trends. With the recovery of the global economy and the rapid development of the Southeast Asian market, the demand for functional silane and other chemical products will continue to grow. By laying out in advance, Hongbai New Materials will be able to occupy a more advantageous position in future market competition.
In short, through the capital increase of Thai Hongbai, Hongbai New Materials has not only accelerated its layout in the Southeast Asian market, but also laid a solid foundation for its competitiveness in the global functional silane industry. In the future, with the advancement of the Thai Hongbai project, Hongbai New Materials is expected to achieve greater success in the Southeast Asian market.