Science Environmental Protection (SH:688480) Zheng Quan Zhi Xing·2025-07-21 12:08Core Viewpoint - Company plans to invest in a new project for producing high-purity sodium sulfide, with an estimated investment of 210 million yuan, aiming to enhance its business structure and profitability [1][7]. New Business Overview - The new business involves the production of high-purity sodium sulfide, which is a key industrial raw material used in various sectors including textiles, leather, paper, and pharmaceuticals [1][5]. - The project will be executed through a subsidiary, Tongling Longrui Chemical Co., Ltd., with the company holding a 65% stake [1][3]. Industry Situation - The global sodium sulfide market is projected to reach approximately 13 billion USD by 2025, with a compound annual growth rate (CAGR) of 4.9%. China accounts for over half of the global production and consumption [2]. - The rapid development of industries such as pharmaceuticals, paper, and specialty engineering plastics in China is driving the growth of the sodium sulfide market [2]. Management and Implementation - The project is currently in the preliminary construction phase, with plans to appoint a board and management team to oversee operations [3][4]. - The project requires compliance with environmental regulations due to potential pollution from industrial waste [3]. Collaboration and Financial Aspects - The project involves a partnership with Tongling Ruijia Special Materials Co., Ltd., which has a registered capital of 290 million yuan [4]. - The financial impact of the new business is expected to increase capital expenditure in the short term but is projected to positively influence long-term business performance [7]. Technological and Operational Advantages - The project utilizes advanced technologies for producing high-purity sodium sulfide, which reduces impurities and enhances product quality compared to traditional methods [6]. - The production process aligns with national energy-saving and environmental protection policies, contributing to sustainable development [6]. Market Demand and Future Prospects - The demand for high-purity sodium sulfide is anticipated to grow due to the expansion of the specialty engineering plastics market, particularly for polyphenylene sulfide (PPS) [5][6]. - The project is expected to create synergies with existing operations, reducing procurement costs and improving overall operational efficiency [5].