Core Viewpoint - Longhua New Materials (隆华新材) is planning to raise capital through its wholly-owned subsidiary, Shandong Longhua Polymer Materials Co., Ltd. (隆华高材), to support the construction of its Nylon 66 project and enhance employee motivation while sharing investment risks with new investors [1][2]. Group 1: Capital Increase Details - Longhua New Materials announced a capital increase of 313 million RMB, with a total investment amount of 376 million RMB from 42 new investors [1]. - The new investors will pay 1.20 RMB for every 1 RMB of registered capital [1]. - Longhua New Materials will waive its preferential subscription rights but will maintain a 65.69% controlling stake in Longhua Polymer after the capital increase [1][2]. Group 2: Purpose of Capital Increase - The capital increase aims to provide strong support for the Nylon 66 project, enhance employee engagement, and mitigate investment risks by sharing opportunities and risks with investors [2]. - Longhua New Materials emphasized that the capital increase aligns with its overall strategic planning and will not change the consolidation scope of the company [2]. Group 3: Expansion Plans - Longhua New Materials plans to issue convertible bonds to raise up to 960 million RMB for expanding its polyether production capacity [2]. - The existing production capacity for end amino polyether is 40,000 tons per year, which will be increased to 140,000 tons per year through various projects [3]. - The expansion includes a technical transformation project to increase capacity by 60,000 to 100,000 tons per year and a new project to produce 200,000 tons of environmentally friendly polyether products [3].

Group 1 - Company plans to issue convertible bonds to raise up to 960 million yuan for expanding polyether production capacity [1] - The fundraising projects include technical transformation of amino-terminated polyether, phase II of the 80,000 tons/year amino-terminated polyether project, and a new 200,000 tons/year environmentally friendly polyether series product construction project [1] - Current production capacity of amino-terminated polyether is 40,000 tons/year, and the expansion will increase total capacity to 140,000 tons/year [1] Group 2 - In the first half of 2025, the company reported a slight increase in revenue but a decline in profit [2] - Revenue reached 2.832 billion yuan, a year-on-year increase of 2.00%, while net profit attributable to shareholders fell by 15.94% to 76.1014 million yuan [2] - The core product, polyether polyol, generated revenue of 2.774 billion yuan, up 5.84%, but the cost of goods sold increased by 6.23%, leading to a slight decrease in gross margin [2]