Operational data for China’s first coal-based ethylene glycol production facility for the first half of 2017

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Recently, Danhua Chemical Technology Co., Ltd. released its semi-annual report for 2017. Tongliao Jinmei is the company’s main holding subsidiary, with the company holding 76.77% of its shares. During the reporting period, the consolidated financial statements showed operating revenue of 557,489,400 yuan and operating profit of 56,634,500 yuan. Tongliao Jinmei operates China’s first coal-based ethylene glycol production facility; it uses lignite as raw material and employs a two-step indirect synthesis process of carbonylation and hydrogenation to produce ethylene glycol, with an annual production capacity of 200,000 tons ； Construction of the project began in 2007, and it came online in December 2009. http://img.yf116.cn/image/img/20170904/1044203866032.jpg The report indicates that, aside from the routine shutdown for maintenance in April, Tongliao Jinmei kept its production facilities operating at high capacity throughout the rest of the time period. It produced 75,800 tons of ethylene glycol, a 22.06% increase compared to the previous year, while producing 32,100 tons of oxalic acid, a 1.83% decrease. The average production capacity was 91.80%, and product sales were satisfactory. In addition, the construction of the ethylene glycol capacity expansion and technical upgrade project, which is funded through fundraising, is nearing completion; project commissioning and defect resolution are currently in progress, with completion and operation expected in the second half of the year. Jiangsu Jinju is a wholly-owned subsidiary of Tongliao Jinmei; during the reporting period, it sold catalysts worth 26.9994 million yuan to subsidiaries of Yongjin Chemical. Henan Energy and Chemical Group Co., Ltd., formerly known as Henan Coal and Chemical Industry Group Co., Ltd., is the second-largest shareholder of its holding subsidiary Tongliao Jinmei. In addition, Tongliao Jinmei and this company have jointly established Yongjin Chemical Investment Management Co., Ltd. Furthermore, during the reporting period, Tongliao Jinmei signed a cooperation agreement with relevant parties such as Henan Nenghua regarding the adjustment of the cooperation structure for the coal-to-ethylene glycol project; this was aimed at modifying the cooperation model with Yongjin Chemical. As part of this arrangement, Tongliao Jinmei gave up its right to increase its capital contribution to Yongjin Chemical in the same proportion, resulting in a decrease in its shareholding ratio. At the same time, Tongliao Jinmei signed a \"Technical License Agreement for the Production of Ethylene Glycol from Coal\" with Anyang Yongjin Chemical Co., Ltd., a subsidiary of Yongjin Chemical, with a licensing fee of 180 million yuan. The company also raised funds on its own to jointly establish the industrial investment fund Shanghai Danmao Chemical Technology Center (Limited Partnership) with Baisixin (Shanghai) Equity Investment Fund Management Co., Ltd. The scale of the fund does not exceed 300 million yuan, and the company contributed 60 million yuan as a junior limited partner to the investment fund. To date, the general partner, fund manager, and managing partner of this fund have all been changed to Beijing Zegu Investment Management Co., Ltd ； The investment fund contributed 15 million yuan to the ethylene glycol project of Inner Mongolia Yilin Chemical Co., Ltd., and 3 million yuan to Horgos Danke Information Technology Co., Ltd ； The fund registration is in progress, and the fundraising of fund shares for the remaining priority limited partners has not yet begun.