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Lianhong New Materials Technology officially enters the biodegradable materials industry! Author/Source: Coal-based New Materials Date: 2021-06-04 Clicks: 9 On June 2, Lianhong New Materials Technology Co., Ltd. (stock abbreviation and code: 003022) issued a announcement stating that it intended to increase its investment in Jiangxi Academy of Sciences Bio-New Materials Co., Ltd. (hereinafter referred to as “Academy Bio”) by RMB 150 million. After this investment, Lianhong New Materials will hold 42.86% of the shares in Academy Bio. Kexueyuan Biology is primarily engaged in the research, development, production, and sales of biodegradable materials such as polylactic acid (PLA). It possesses an independently developed full-industry-chain technology for \"high-purity lactic acid – high-purity lactide – polylactic acid\". This capital increase marks Lianhong New Materials’ official entry into the biodegradable materials industry, providing further strong momentum for the company’s future development! Biodegradable materials are one of the key areas of investment for Lianhong New Materials. To date, more than 120 countries and regions around the world have successively introduced policies to ban or restrict plastic use ； In January 2020, the **National Development and Reform Commission and the Ministry of Ecology and Environment issued the \"Opinions on Further Strengthening the Control of Plastic Pollution\". The trend toward environmental sustainability and the tightening of policies restricting plastic use have created a huge demand for biodegradable materials. The industry is now at a stage of maturity, and it is expected to reach a market scale of hundreds of billions in the future, turning into a \"golden sector\". Among them, PLA is an important biodegradable material; there is a continuous demand for it in the market. However, PLA technology has long been monopolized by foreign countries, with only a few companies possessing it. Kexue Bio has established a thousand-ton-scale PLA integrated production line, which has been successfully tested, thereby achieving batch production capabilities. The properties of the lactic acid-lactide-polylactic acid products from the entire production chain have all passed testing by third-party institutions. The Academy of Sciences’ biology program plans to build a full-industry-chain project for biodegradable polymer lactide with an annual production capacity of 130,000 tons in two phases. This capital increase by Lianhong New Materials will accelerate the implementation and commissioning of the project, thereby meeting the strong demand driven by rapid market growth; PLA will also become a new driver of growth for Lianhong New Materials. Lianhong Company is a supplier of new material products and solutions, focusing on the research, development, production, and sales of advanced polymer materials and special fine materials. It is recognized as a \"High-Tech Enterprise\" and a \"**-level Green Factory\". Through years of continuous development, the company has established an advanced olefin processing industry chain that uses methanol as the main raw material to produce high-value-added products. It operates a number of state-of-the-art facilities for processes such as methanol-to-olefins (DMTO), ethylene-vinyl acetate copolymer (EVA), polypropylene (PP), ethylene oxide (EO), and ethylene oxide derivatives (EOD), and its production and operation standards are among the best in the industry. The company’s key products, including EVA photovoltaic film materials, EVA materials for wires and cables, PP materials specifically designed for thin-walled injection molding, special surfactants, and high-performance water reducers, hold leading market shares in their respective segments. Lianhong New Materials released its annual report for 2020 on March 24, 2021; this was the company’s first annual report since its listing. In 2020, the company achieved operating revenue of 5.931 billion yuan, with a net profit attributable to the shareholders of the listed company amounting to 641 million yuan, representing a year-on-year increase of 20.46%.