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Recently, Inner Mongolia Sanefu Wanhao Fluorine Chemical Co., Ltd. (hereinafter referred to as “Inner Mongolia Sanefu”), which is a subsidiary of Shanghai Hua Yi Sanai Fu New Materials Co., Ltd. and in turn a subsidiary of Shanghai Hua Yi Group Co., Ltd. (hereinafter referred to as “Hua Yi Group”), received a notice issued by the People’s Government of Fengzhen City regarding the suspension of operations at the entire facility of Inner Mongolia Sanefu Wanhao Fluorine Chemical Co., Ltd. for remedial actions. To effectively eliminate potential risks and ensure the quality of the ecological environment, the People’s Government of Fengzhen City has decided to order Inner Mongolia Sanaifu Company to suspend operations and carry out remedial actions across its entire facility. Huayi Group stated that it attaches great importance to this suspension of operations, and has established a dedicated team to actively respond to the requirements of the relevant authorities. It is strengthening communication with these departments and working full steam ahead to assist the government in carrying out environmental risk assessments and eliminating potential hazards, with the goal of resuming operations as soon as possible. According to the announcement, Inner Mongolia Sanai Fu mainly produces products such as F152a, F142b, FKM, and PVDF. This production halt is expected to have a certain impact on Inner Mongolia Sanai Fu’s recent output; the company will actively coordinate the production loads at its other manufacturing sites to minimize the effects. From January to September 2025, Inner Mongolia Sanaifu’s operating revenue was 779 million yuan, while its net profit was -41.2423 million yuan. Its operating revenue accounted for 2.16% of Huayi Group’s total operating revenue (the figures mentioned above are not audited). This production halt will not have a significant impact on Hua Yi Group’s operational results for 2025; the actual impact will be determined based on the audited financial reports.
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