Longhua New Materials’ revenue in the first half of the year was 1.631 billion yuan, and it plans to invest 600 million yuan in the construction of an 80,000-ton/year terminal amino polyether project
Latest News: On the evening of August 16, Longhua New Materials released its 2022 semi-annual report. During the reporting period, the company achieved a revenue of 1.631 billion yuan, a year-on-year decrease of 21.91%, and a net profit of 75.8834 million yuan, a year-on-year decrease. 34.83%.
At the same time, the company also disclosed that it plans to build an 80,000-ton/year terminal amino polyether project with a total investment of about 600 million yuan. It is understood that amino-terminated polyethers are currently widely used in the wind power industry. With the gradual improvement of the wind power industry, the market demand for amino-terminated polyethers is generally stable and rising.
It is understood that Longhua New Materials was listed on the market in November last year. It is mainly engaged in the research and development, production and sales of polyether series products. The products are mainly used for 0-pressure mattress sponge, shoe material sponge, high-speed rail seats, car seats, Production of sports shock absorption, packaging and other products. Downstream customers include shoe factories such as “Dream Lily”, “Xilinmen”, “Li Ning” and “Anta”, and seat manufacturers such as “Yutong Bus” and “Foton Motors”.
According to the semi-annual report of Longhua New Materials, in the first half of this year, the company’s operating profit and net profit decreased due to the combination of unfavorable factors such as falling product prices and changes in the epidemic.
However, the company’s new production capacity was also completed on schedule in the first half of the year. According to reports, the 360,000-ton/year high-performance polyether polyol expansion project invested by Longhua New Materials was completed as planned on June 20, and after trial production, a successful start-up was achieved.
It is understood that the product structure of the 360,000-ton/year high-performance polyether polyol expansion project is dominated by high-activity polyether (high-resilience polyether) and CASE polyether (elastomer polyether), mainly for transportation, sports Sports and construction waterproofing fields, etc. At the same time, Longhua New Materials said that the company’s existing polyether production capacity reached 720,000 tons per year, which is conducive to the company’s further expansion of its market share at home and abroad and consolidate its position in the industry.
On the basis of the new production capacity, Longhua New Materials has started new project investment.
According to the disclosure on the evening of August 16, Longhua New Materials plans to invest in the construction of an 80,000-ton/year terminal amino polyether project in the Economic Development Zone of Gaoqing County, Zibo City, Shandong Province. The total investment of the project is about 600 million yuan. The construction period will be from 2022 to 2023. Longhua New Materials said that the project is an extension of the existing main business.
It is understood that amino-terminated polyethers are currently widely used in wind power industry, accessories, epoxy flooring, railway transportation, automobiles, plastic runways, elastomeric polyurethane and other fields. In the field of polyurethanes, especially in high-performance elastic systems, polyether or polyester polyols will be increasingly replaced by amino-terminated polyethers. From the perspective of global and Chinese market sales, the growth rate of Chinese market demand is faster than the global market. With the steady recovery of renewable energy and the implementation of offshore wind power, the wind power industry has gradually improved, and the market demand for amino-terminated polyethers has generally increased steadily.
In addition, investors are also paying more attention to the progress of Longhua New Materials’ PA66 (nylon 66) project.
It is understood that the PA66 project of Longhua New Materials is planned and designed to be 1.08 million tons per year, and the construction will be completed in three phases in 6 years. The first phase of the project plans to invest 2 billion yuan, with a designed production capacity of 160,000 tons per year. Construction is planned to start in June 2022.
Earlier in May, Longhua New Materials stated that the PA66 project has been supported by the city and county governments, and the leading group office of Zibo’s major project promotion work has included this project into the city’s major project management. The company is in the process of contacting the Gaoqing County Government and Gaoqing County Natural Resources Bureau for the transfer of land use rights for this project. It is expected to obtain the land use rights required for the administrative office area and R&D center in June 2022, and obtain the first phase of project production in August 2022. Land use rights required for installations, supporting public works, etc. At the same time, the project’s safety assessment, environmental assessment, energy assessment and other procedures are also being processed. The project will be completed in December 2023, commissioned and put into production in the first quarter of 2024.