Longhua New Materials achieved a net profit of 164 million yuan in the first three quarters, and plans to expand the production capacity of polyether polyols

On October 22, Shandong Longhua New Materials Co.

The prospectus shows that Longhua New Materials is mainly engaged in the research and development, production and sales of polyether polyol (PPG) (polyether for short) series products, and is a domestic professional large-scale production enterprise of polyether series products

In 2020, the company's total polyether sales volume is about 223,900 tons, accounting for about 5.

The company's performance in recent years has shown a continuous growth trend.

In the prospectus, the company also disclosed the performance of the first three quarters of 2021 (unreviewed).

The prospectus shows that the funds raised by Longhua New Materials listed on the Growth Enterprise Market are mainly invested in construction projects closely related to the main business and to supplement the working capital required for the development of the main business

The company said that the company's current production development has encountered bottlenecks, and it is urgent to further expand production capacity to reduce marginal costs, enhance the overall competitiveness of the market through the release of large-scale benefits, and consolidate the company's market position in the domestic polyurethane material industry.

The company believes that with the gradual deepening of the national supply-side reform and the improvement of residents' living standards and environmental protection awareness, the polyether market may usher in a major reshuffle, and the industry will gradually concentrate on leading enterprises.