Core Viewpoint - Zhonglun New Materials (301565) is expanding its production capacity for polyamide 6 (PA6) and BOPA film materials, with significant investments planned for the coming years [1] Production Capacity - Current annual production capacity for PA6 slices is 145,000 tons, located in Quanzhou [1] - Total planned PA6 slice production capacity under construction is 210,000 tons per year, with 140,000 tons funded by the IPO and 70,000 tons from self-financing, expected to be operational by 2027 [1] BOPA Film Production - The company operates 14 production lines for BOPA film materials, with a total annual capacity of 145,000 tons, distributed as follows: 12 lines in Xiamen with a capacity of 105,000 tons and 2 lines in Quanzhou with a capacity of 40,000 tons [1] - The Quanzhou base plans to add 2 new production lines, totaling an additional capacity of 40,000 tons, expected to be operational in 2026 and 2027 [1] - The Indonesian project plans to construct 4 production lines with a total capacity of 90,000 tons, with the first line expected to be operational in the first half of 2026, adding 25,000 tons per year to the company's BOPA film capacity [1] - Once all domestic and international capacities are fully operational, the planned annual capacity for BOPA film will reach 275,000 tons [1]

Core Viewpoint - The company Zhonglun New Materials (301565) is expanding its production capacity for polyamide 6 (PA6) slices, with a current annual capacity of 145,000 tons and plans for an additional 210,000 tons by 2027, supported by both IPO funding and self-financing [1] Company Summary - Current annual production capacity for PA6 slices is 145,000 tons, located in Quanzhou [1] - The company has a total of 210,000 tons per year of PA6 slice capacity under construction, with 140,000 tons funded by the IPO and 70,000 tons from self-financing [1] - The new capacity is expected to be operational by 2027 [1] Industry Summary - The industry has reached a consensus on "anti-involution," leading to a positive development trend [1] - The company's ability to pass on costs to downstream sectors is enhanced by the raw material "anti-involution" consensus, which is expected to improve profitability [1]

Production Capacity and Planning - The current annual production capacity of PA6 chips is 145,000 tons, with a planned additional capacity of 210,000 tons by 2027, including 140,000 tons from IPO funding and 70,000 tons from self-financing [1] - The company has 14 BOPA film production lines with a total capacity of 145,000 tons, with plans to add 40,000 tons in the Quanzhou base and 90,000 tons in Indonesia by 2027 [2] Market and Customer Insights - In the first half of 2025, overseas revenue accounted for over 50% of total sales, indicating significant growth in international markets [3] - The company has established a strong overseas marketing team, covering key regions such as Europe and Southeast Asia, which supports market expansion after the establishment of production capacity in Indonesia [7] Product Development and Technology - The first BOPP film production line was launched in November 2025, with a second line expected in late 2026, focusing on thin and ultra-thin film products [4] - BOPP film production lines are expected to have an annual capacity of approximately 24,000 tons, depending on product thickness, with a total of nine lines planned [4] Raw Material Supply and Industry Barriers - The supply of electrical-grade polypropylene remains low in domestic production, with the company sourcing materials from overseas suppliers [5] - The BOPP capacitor film industry has high entry barriers due to the quality of raw materials and the maturity of production technology, which are critical for product performance [5] Customer Base and Sales Growth - Recent sales growth has been driven by both existing and new customers, with a focus on increasing coverage of small and medium-sized clients [6] - The company benefits from stable demand from large enterprises, which helps optimize production scheduling and capacity utilization [6] Environmental Initiatives - BOPLA, a biodegradable film material made from polylactic acid, offers strong biodegradability and physical strength, making it suitable for various applications while supporting sustainability goals [8][9] - BOPA film materials provide excellent barrier properties, extending the shelf life of products and reducing the need for additives, making them ideal for food and consumer goods [9]