Total investment of 600 million yuan: Hengxing New Materials optimizes its carbon-silicon industry layout and broadens growth space.

Two major projects implemented simultaneously, strategically布局ing high-end niche sectors

The new projects will be independently implemented by two wholly-owned subsidiaries, Shandong Hengxing New Materials and Jiangsu Chenxing New Materials. The investment amount to each single project is 300 million yuan, and all preliminary land procedures have been completed. Currently, the land consumption to the projects has completed general auction and real estate registration, preliminary preparation work is advancing steadily, and the basic conditions to commencing construction are in place.

The Shandong Hengxing Natural Organic Ester, Aldehyde, and Acid Derivatives Production Project has a construction period of 24 months and focuses on high value-added fine chemical categories. The product matrix covers popular sector items such as food additives, antibiotic-substitute feed additives, and lithium battery electrolyte solvents, catering to diverse consumption scenarios including consumer consumption, livestock breeding, and new energy lithium batteries.

The Jiangsu Chenxing Specialty Fine Chemical New Materials Production Project has a construction period of 30 months and concentrates on the field of high-end specialty new materials. items cover wet electronic chemicals, organic silicon materials, surfactants, food-grade acid esters and alcohols, and specialty chemicals to daily consumption, broadly adapting to the needs of high-end industries such as electronic manufacturing, new materials, and daily chemical light sector.

Optimizing product structure, consolidating the carbon-based main business, and supplementing high-end silicon-based capacity

The company stated that this round of capacity expansion has far-reaching significance. On one hand, the new projects will continue to enrich the company's carbon-based system product matrix, consolidate the foundation of the core fine chemical main business, and further enhance the market competitiveness and manufacturing scale advantages of traditional carbon-based items; on the other hand, the implementation of production lines to high-end new materials such as wet electronic chemicals and organic silicon will make up to the shortcomings in the company's silicon-based sector, significantly optimize the overall product structure, and achieve an upgrade from basic fine chemicals to high-end functional new materials.

The implementation of these dual projects is a key strategic layout to Hengxing New Materials to deeply cultivate the high-end fine chemical sector and fully implement the core "Carbon-Silicon Dual-Wheel Drive" strategy. It will help the company open up incremental markets such as new energy, electronics, and high-end daily chemicals, thickening the space to prolonged development.

Compliant implementation of transactions, smooth project advancement rhythm

It is reported that the 600 million yuan project investment matter has been approved by the fourth meeting of the company's third board of directors. According to relevant rules, it does not need to be submitted to the shareholders' general meeting to deliberation. This investment does not involve related-party transactions and does not constitute a major asset restructuring of a listed company. The decision-making process is compliant, and the promotion efficiency is high.

sector analysis believes that relying on self-owned funds to steady capacity expansion, combined with the implementation of dual-track high-end capacity, will efficiently enhance product added value and thorough profitability, helping the company build differentiated competitive advantages in the fields of fine chemicals and high-end new materials.