Changhua Chemical plans to build a 50,000-ton/year high-activity POP facility

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On June 3, Changhua Chemical announced a plan to issue shares to specific investors through a simplified procedure in 2026, with the aim of raising a total amount of no more than 298 million yuan. After deducting the issuance costs, this funds will be used entirely for the construction of high-performance polyol production facilities and for repaying bank loans. The number of subscribers shall not exceed 35, and the number of shares issued shall not exceed 30% of the company’s total share capital prior to this issuance. The entity responsible for implementing the high-performance polyol production project is Changhua Chemical Lianyungang, a wholly-owned subsidiary of the company. The total investment in this project amounts to 251 million yuan, of which 218 million yuan is intended to be funded through raised capital. Once completed, the project will have an annual production capacity of 50,000 tons of highly active POP. According to the announcement, high-activity POP is one of the company’s core products, accounting for 28.56% of the total gross sales profit in 2025. The company has now established a production facility capable of producing 60,000 tons of highly active POP per year. In 2025, the capacity utilization rate reached 99.52%, indicating that the facility is nearly at full capacity. The funds raised this time will be primarily allocated to the construction project for high-performance polyols. They will be used for production line development, process optimization, and capacity expansion, with the aim of overcoming production bottlenecks, strengthening our market position, and increasing the sales proportion and profitability of high-value-added products. The main business of Changhua Chemical Technology Co., Ltd. is the research, development, and production of polyether products, with its key products including POP, PPG for soft foam applications, polyethers for CASE applications, and specialty polyethers. In 2025, the company achieved operating revenue of 2.755 billion yuan, a decrease of 9.67% compared to the previous year ； The net profit attributable to the parent company was 97.2181 million yuan, representing a year-on-year increase of 67.17%.