Partnering with Pingmei Shenma for the Second Time, Wanhua Chemical Further Upgrades Industrial Chain Synergy

On May 26, the National Enterprise Credit Information Publicity System disclosed that Huashen New Materials (Henan) Co., Ltd. was officially registered and established in Ye County, Pingdingshan City, Henan Province, with a registered capital of 360 million yuan. Tianyancha equity information shows that the company is held by Wanhua Chemical Group with 55% and Henan Pingmei Shenma Polycarbonate Materials Co., Ltd. with 45%. The company's main business involves the production and sales of basic chemical raw materials, synthetic materials, engineering plastics, and synthetic resins. It also possesses qualifications for the operation of Category I non-pharmaceutical precursor chemicals and Category II monitored chemicals.

I. Second Cooperation Realized; Deepening Synergy in Both Parties' PC Industrial Chains

This marks the second joint venture layout between Wanhua Chemical and Pingmei Shenma Group. As early as August 2021, the two companies joined hands to establish Huashen New Materials (Ningbo) Co., Ltd., with Wanhua Chemical holding 60% and Henan Shenma Nylon Chemical holding 40%, focusing on the supply of hexamethylenediamine products.

The establishment of the new company in Henan this time marks the extension of bilateral cooperation to the core polycarbonate (PC) industrial chain. The Category II monitored chemicals in its business scope correspond to phosgene, a key raw material for phosgene-based PC production. This category is regulated by the "Chemical Weapons Convention," and its production and operation require special permission from the Ministry of Industry and Information Technology; the Category I non-pharmaceutical precursor chemicals cover solvents such as acetone used in PC production.

The context of the cooperation is clear: In March 2026, the environmental impact assessment (EIA) for Pingmei Shenma Polycarbonate Materials' Phase II 200,000 tons/year PC and supporting 150,000 tons/year phosgene project was accepted. The document explicitly stated that the PC process technology for the project is provided by Wanhua Chemical; on May 6, senior executives from both sides met again to exchange in-depth views on PC project cooperation; shortly thereafter, the joint venture was established, completing the progression from technology export to a physical joint venture, further strengthening the industrial chain binding.

II. New Energy Battery Materials: Most Intensive Cooperation and Accelerated Capacity Layout

In the past two years, new energy battery materials have been a key area for Wanhua Chemical's external cooperation and investment. According to its 2025 investment plan, the emerging materials (battery) segment plans to invest 2.16 billion yuan, and the external equity investment quota reaches 4.19 billion yuan.

· Organosilicon and Sealing Materials: In June and August 2025, Wanhua Chemical successively established Hubei Xinghua Silicon Materials and Yantai Huaxing Silicon Materials with Xingfa Group, respectively, to lay out organosilicon new materials and high-performance sealing materials.

· Iron Phosphate Chain: Wanhua Chemical has laid out a total investment of 15 billion yuan for a 600,000 tons/year iron phosphate and supporting project in Yichang, Hubei. In March 2026, the two parties established Hubei Huaxing New Energy Co., Ltd. (Wanhua holding 70%) again, planning 240,000 tons/year iron-process iron phosphate capacity, with production expected to start in 2027.

· Lithium Battery Cathode Supporting Materials: In May 2026, Wanhua Chemical joined forces with Luyin Investment to establish a joint venture, planning to invest 450 million yuan to build a high-performance metal powder project, focusing on high-purity iron powder for lithium iron phosphate battery cathodes, with a planned annual output of 200,000 tons of atomized powder and 100,000 tons of ultra-pure mineral powder.

III. Engineering Plastics (PC): Continuous Capacity Expansion and Alliance of Strong Parties to Consolidate Advantages

Wanhua Chemical is a leader in the domestic PC field, with existing PC capacity of 600,000 tons/year. Its market share in the mid-to-high-end segment and export volume both rank first in China. The Fujian 600,000 tons/year PC project under its umbrella initiated its first EIA in March 2026. Upon full completion, the company's total PC capacity will increase to 1.2 million tons/year.

In terms of PC business cooperation, Pingmei Shenma Polycarbonate Materials has planned a total of 400,000 tons/year PC and 370,000 tons/year Bisphenol A capacity. Currently, the first phase of 100,000 tons/year PC and 130,000 tons/year Bisphenol A has been put into operation; the second phase of 200,000 tons/year PC + 150,000 tons/year phosgene project adopts Wanhua Chemical's technology. Combined with the landing of this Henan joint venture, the two parties have formed a complete synergistic system in the PC track.

IV. Automotive Industry Chain: Cross-boundary Linkage to Deepen Application of Automotive-grade New Materials

From 2025 to 2026, Wanhua Chemical signed three strategic partnerships in the automotive sector, promoting the deep integration of chemical materials and automotive manufacturing:

· August 2025, cooperated with Xingyu Co., Ltd., focusing on the R&D and application of materials such as PC and PMMA in automotive headlights;

· October 2025, united with Austria's ENGEL and Hitech Co., Ltd. to expand application scenarios for automotive parts around new processes and PC materials;

· April 2026, joined hands with Autoliv to jointly develop innovative materials for automotive steering wheels.

V. International Layout: Introducing Overseas Capital to Co-build Shipping and Chemical Projects

Overseas cooperation is proceeding steadily, and the pace of globalization is accelerating:

· April 2025, Petrochemical Industries Company (PIC) of Kuwait invested $638 million to acquire a 25% stake in Wanhua Chemical's Yantai petrochemical sector. The parties also plan to co-build a chemical project in Fuzhou, Fujian;

· August 2025, the shipping enterprise joint ventured by Wanhua Chemical and ADNOC Logistics & Shipping took delivery of its first Very Large Ethane Carrier (VLEC). The company has ordered a total of 9 ships of the same type, to be delivered successively from 2025 to 2027.

VI. Fine Chemicals and Other New Materials: Blooming in Multiple Areas to Broaden Product Matrix

Beyond core tracks, Wanhua Chemical continues external cooperation in flavors, insulation materials, chemical additives, and special new materials:

· May 2025, established a joint venture with Jinhua Industry to lay out flavor products such as food and feed additives;

· September 2025, united with multiple enterprises to set up a company focusing on XLPE high-voltage insulation materials;

· January and February 2026, successively renewed/deepened strategic cooperation with PCL raw material supplier Juren New Materials and anti-aging additive company Rianlon;

· May 2026, established a new company with Nantong Haidi Holding to carry out new material technology R&D and chemical product development.