Ten years mark more than the passage of time. They define a milestone in a company’s development.

On August 26, 2016, Shandong Head Co., Ltd. (HEAD Group) was listed on the Shenzhen Stock Exchange, marking its official entry into the capital markets.

On August 26, 2026, at the milestone of its 10th listing anniversary, HEAD Group gathered with representatives from government, capital markets, industry associations, customers from China and abroad, business partners, and employees from across its global operations. Together, they looked back on a decade of progress and explored the Group’s vision for the future.

A decade empowered by capital. HEAD Group moves forward with renewed momentum.

From Listing to Growth: A Decade of Long-Term Commitment

Staying the Course Through Market Cycles

The past decade has not been without challenges.

Faced with a sluggish global economic recovery, intensifying industry competition, and shifts in the international trade environment, HEAD Group remained committed to its long-term strategy, safeguarding its established markets and customer relationships while navigating short-term challenges with discipline and determination.

In response to tariff and trade policy challenges in the United States, HEAD chose to maintain its market presence, continue investing, and advance the development of its U.S. manufacturing facility.

On December 21, 2025, the relevant final determination was issued, reducing Huili’s anti-dumping duty rate from 172% to 18%. Including countervailing duties and U.S. federal tariffs, the combined rate stood at 46%. Meanwhile, demand in the U.S. market continued to grow, and the Group’s plant-based capsule business achieved strong growth in the first half of 2026.

This experience reaffirmed HEAD’s long-standing commitment to a long-term approach:

We do not abandon our long-term direction in response to short-term challenges, nor sacrifice long-term value under temporary pressure.

From China to the global marketplace, and from product exports to an increasingly integrated international presence, HEAD is pursuing a more active role in global industrial value chains.

Ten years ago, HEAD entered the capital markets with cellulose ethers as its core business and an ambition to build a century-spanning enterprise and establish a world-renowned brand.

Over the past decade, opportunities and challenges have gone hand in hand. The Group has expanded its industrial value chain, deepened its global footprint, and made significant strides in scale, strength, and competitiveness.

In 2015, HEAD recorded total operating revenue of RMB 496 million and net profit of RMB 49.29 million. In 2025, these figures reached RMB 1.912 billion and RMB 142 million, respectively. In the first half of 2026, the Group achieved revenue of RMB 1.225 billion, up 26% year on year, and net profit of RMB 213 million, up 88%.

These figures tell a story of growth and demonstrate how an industrial enterprise has navigated market cycles while continuously evolving.

From its early activities in equipment manufacturing and metal structure installation, to its strategic transition into cellulose ethers in 2000, and now to a business portfolio built around three synergistic segments — cellulose ethers, Huili Capsules, and Carbon Energy Technology — HEAD has continued to extend its industrial value chain and move toward higher-value opportunities.

Today, HEAD’s products serve a broad range of industries, including construction materials, pharmaceutical and healthcare, food and personal care, and energy recovery. Its sales network spans nearly 100 countries and regions. The Group has annual production capacity of nearly 80,000 metric tons of cellulose ethers and 35 billion plant-based capsules, while continuing to expand into higher-value products and broader markets.

Innovation as a Driver of Industrial Advancement

The decade since listing has also been a period of sustained investment in technological innovation.

HEAD has continuously increased its R&D investment and established provincial-level engineering laboratories and corporate technology centers. Its research efforts have focused on addressing key technical challenges in high-end pharmaceutical-grade cellulose ethers, specialty functional cellulose ethers, and critical manufacturing processes for plant-based capsules.

At the same time, HEAD has continued to strengthen its global sales network, establishing local operations in markets including the United States and Spain and building long-term strategic partnerships with numerous internationally recognized companies.

Technological innovation and global market development have become essential pillars of the Group’s ability to navigate market cycles and strengthen its competitiveness.

A New Decade: Advancing Toward Global Industry Leadership

As HEAD marks its 10th listing anniversary, the achievements of the past decade are not a reason to slow down, but a foundation for the next stage of growth.

Looking ahead, the Group will embrace a renewed, start-from-zero mindset and remain steadfast in its strategic direction. It will focus on industrial upgrading, technological innovation, globalization, digital intelligence, organizational development, and sustainability to reinforce the foundations of long-term growth.

Industrial development: HEAD will continue to strengthen its core cellulose ether business while upgrading its product portfolio toward pharmaceutical, food-grade, and specialty functional applications. It will further expand plant-based capsules as its second growth engine, advancing toward global leadership in the sector, while cultivating new growth opportunities and extending into related businesses across the value chain.

Technological innovation: The Group will elevate innovation to a central position in its corporate strategy and build an integrated R&D framework combining its Zibo headquarters technology center, overseas technology centers, and deep collaboration with universities and research institutions.

Globalization: Remaining rooted in China while expanding worldwide, HEAD will advance the globalization of its manufacturing, markets, and operations, continuously strengthening its international management capabilities.

Digital intelligence: The Group will integrate digital technologies more deeply into business operations, manufacturing, supply chains, and organizational management to create new drivers of growth.

Over the next decade, HEAD’s ambition is clear:

Rooted in China. Positioned globally. Building a multinational industrial group.

Sharing the Rewards of Growth with Those Who Make It Possible

The decade of corporate growth has also been a decade shaped by the dedication of every HEAD employee.

From production lines to R&D laboratories, from domestic markets to overseas operations, and from customer service to corporate management, more than 1,900 employees across HEAD’s global operations have remained committed to their roles. They have stood together through industry downturns and risen to the challenge of critical projects.

“Every achievement HEAD has made belongs to those who work diligently and make steady progress every day.”

At the 10th listing anniversary celebration, the Group presented Long-Service and Dedication Awards to employees who have remained committed to the company and grown alongside it. The celebration also featured a bonus distribution ceremony under the Group-wide Co-Creation and Shared Success Program.

These rewards represent more than financial incentives. They embody HEAD’s commitment to creating value together with its employees and sharing the results of collective effort.

Over the past decade, HEAD has advanced through the dedication of generations of employees. Over the next decade, the Group will continue to empower more people to participate in, contribute to, and benefit from its growth.

From working toward common goals to creating value together, and from creating value together to sharing the rewards, the bond between the company and its employees will grow even stronger in the decade ahead.

A New Starting Point for the Next Decade

HEAD’s decade as a listed company marks a pivotal chapter connecting its past achievements with its future ambitions.

Ten years ago, the ringing of the listing bell opened a new chapter of growth supported by the capital markets.

Ten years later, HEAD stands at another starting point, ready to pursue broader opportunities on the global stage.

Looking back helps us move forward with greater purpose.

As Chairman Bi Yudong stated in his address at the anniversary celebration:

“We do not pursue short-term hype or impulsive gains. We believe in the power of long-term commitment, in the value created by real industry, and in technology as the key to the future.”

Over the next decade, HEAD will remain grounded in its industrial foundations, driven by innovation, and focused on globalization, advancing high-quality growth with greater resilience and determination.

Every generation has its own mission.

Over the past decade, we have grown through perseverance and hard work. In the decade ahead, we will continue to work together with determination and a down-to-earth spirit, steadily advancing toward our ambition of becoming a globally leading industrial group.

Ten years: a milestone, and a new beginning.

August 26, 2026

The 10th Anniversary of HEAD Group’s Listing

A new decade. A new journey.

Together, let us move forward toward an even broader future for HEAD.

A decade empowered by capital. HEAD Group moves forward with renewed momentum.

The next decade starts now.