Core Viewpoint - Lianhong Xinke has successfully launched two major new energy material projects, enhancing its product portfolio and industry chain advantages, which is expected to positively impact the company's performance [1][2]. Group 1: Project Launches - The company’s subsidiary, Shandong Huayu Tongfang Electronic Materials Co., has successfully put into operation a 4,000 tons/year lithium battery additive, vinyl carbonate (VC), on December 22, 2025 [1]. - Another subsidiary, Lianhong Gelun (Shandong) New Materials Co., has also launched its integrated project for new energy materials and biodegradable materials [1]. - The VC product is currently the most widely used additive in lithium battery electrolytes, significantly improving battery capacity and cycle life [2]. Group 2: Market Demand and Future Projections - The lithium battery industry is experiencing increased demand driven by sectors such as power, energy storage, and low-altitude economy, leading to a rapid rise in market prices for lithium solvents and additives [2]. - Industry forecasts predict that the demand for power and energy storage batteries will grow by over 30% by 2026, with energy storage batteries potentially increasing by more than 50% [2]. Group 3: Production Capacity Expansion - The integrated project will add a 300,000 tons/year propylene oxide (PO) facility, a natural gas hydrogen production facility, a 1.3 million tons/year methanol-to-olefins (MTO) facility, a 200,000 tons/year EVA facility, and a 240,000 tons/year polyether polyol (PPG) facility [2]. - With the new facilities, Lianhong Xinke will have two 1.3 million tons/year MTO plants, ensuring stable and sufficient raw material supply [2]. - The total EVA production capacity will exceed 350,000 tons/year, and the PPG facility will utilize industry-leading continuous processing technology [2]. Group 4: Financial Performance - In the first three quarters, the company achieved a revenue of 4.568 billion yuan, a year-on-year decrease of 8.02%, while net profit reached 232 million yuan, a year-on-year increase of 30.32% [3]. - The company benefited from price increases in key products like EVA and UHMWPE, with a significant net profit increase of 90.9% in the third quarter alone, amounting to 71.73 million yuan [3].

Core Viewpoint - The announcement highlights the successful production launch of the integrated new energy materials and biodegradable materials project by Lianhong New Materials, marking a significant milestone for the company and the Shandong province [1] Group 1: Project Overview - The Lianhong Gelun integrated project is a major initiative located in the Lunan High-tech Chemical Park in Tengzhou, Shandong Province [1] - Construction of the project began in April 2024, with an expected overall completion date in September 2025 [1] Group 2: Production Details - The project includes several key production facilities: - 300,000 tons/year of propylene oxide (PO) facility commenced production on December 22 [1] - 1.3 million tons/year of methanol-to-olefins (MTO) facility and 200,000 tons/year of ethylene-vinyl acetate (EVA) facility started production on December 10 [1] - 240,000 tons/year of polyether polyols (PPG) facility began production on November 5 [1] - All production units successfully achieved initial operation and are currently running stably [1]