The total investment of the project is 600 million yuan, including 517.5 million yuan in fixed assets investment, 2.5103 million yuan in interest during the construction period, and 80 million yuan in initial working capital. The construction period of the project is 12 months, and it is planned to start from 2022
Construction started in October 2019 and is expected to be completed in October 2023. After the project is completed and put into operation, the annual average operating income will be about 2.232 billion yuan, and the average annual profit will be 412 million yuan.

The project technology is mature, and the introduction of key core technologies of independent innovation is an extension of the existing main business. This project will give full play to the company’s long-term technical accumulation in the field of new chemical materials, extend the company’s polyether products downstream, and develop diversified and integrated in the polyurethane field, which is conducive to enhancing the company’s profitability, anti-risk ability and comprehensive competitiveness. The company’s long-term development strategic plan for the field of new materials is in line with national industrial policies and local economic development plans. The internal and external construction conditions of the project are superior, which can ensure the smooth implementation of the project and bring good economic and social benefits to the company.

Amino-terminated polyethers are currently widely used in wind power industry, accessories, epoxy floors, railway transportation, automobiles, plastic runways, polyurethane elastomers 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 and has a good development prospect.

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, the company achieved revenue of 1.631 billion yuan in the first half of the year, a year-on-year decrease of 21.91%, and a net profit of 75.8834 million yuan, a year-on-year decrease of 34.83%. In the first half of this year, due to the combination of unfavorable factors such as falling product prices and changes in the epidemic, the company’s operating profit and net profit decreased.