Core Viewpoint - The article highlights the significant progress and investment in the integrated project of Lianhong Gelun, focusing on the establishment of a 240,000 tons/year polyether polyol (PPG) facility, which is a key component of a larger new materials initiative in Shandong Province [2][3]. Summary by Sections Project Overview - The Lianhong Gelun integrated project has a total investment of 12.5 billion yuan, covering over 1,600 acres, and includes multiple production facilities for various materials [3]. - The project features a 200,000 tons/year EVA facility, a 300,000 tons/year CHPPO facility, a 50,000 tons/year PPC facility, and a 1.3 million tons/year DMTO facility, among others [3]. Production Facilities and Technologies - The 240,000 tons/year PPG facility, constructed by Zhuoran Co., utilizes proprietary technology developed by Zhuoran, using upstream-produced epoxy propane and epoxy ethane as raw materials [3]. - The facility aims to produce high-performance polyether polyol products, including soft foam and CASE series [3]. Company Background - Lianhong Gelun (Shandong) New Materials Co., Ltd. was established on September 26, 2021, with a registered capital of 500 million yuan, and is a subsidiary of Lianhong New Materials Technology Co., Ltd. [3]. - The company focuses on four major business areas: new energy materials, biodegradable materials, electronic materials, and other specialty materials [3]. Product Portfolio - The company produces high-value EVA products, with existing capacity exceeding 150,000 tons/year and plans for an additional 200,000 tons/year facility by the end of 2025 [3]. - Other products include lithium battery materials, solid-state battery materials, and various electronic-grade gases, with several projects under construction and expected to be operational by 2025 [4][5][6][7]. Financial Performance - In the first half of 2025, the company reported revenue of 2.911 billion yuan, a year-on-year decrease of 12.13%, while net profit attributable to shareholders increased by 14.15% to 161 million yuan [8].

Core Viewpoint - The company reported a revenue decline of 12.13% year-on-year for the first half of 2025, while net profit increased by 14.15%, attributed to lower raw material costs and contributions from new products [2][3]. Financial Performance - Revenue for the first half of 2025 was 2.911 billion yuan, down from 3.313 billion yuan in the same period last year, marking a decrease of 12.13% [3]. - Net profit attributable to shareholders was 160.67 million yuan, up from 140.76 million yuan, reflecting a growth of 14.15% [3]. - Net profit excluding non-recurring items was 159.78 million yuan, a significant increase of 43.21% compared to 111.57 million yuan in the previous year [3]. - Operating cash flow increased by 4.49%, reaching 259.93 million yuan compared to 248.76 million yuan in the same period last year [3]. Segment Performance - Advanced Polymer Materials segment generated revenue of 1.651 billion yuan, down 6.04% year-on-year, with a gross margin decrease of 3.22% [3]. - Specialty Fine Materials segment saw revenue rise to 679.76 million yuan, up 25.32% year-on-year, with a gross margin increase of 10.07% [3]. - By-products and others generated 580.83 million yuan, down 42.72% year-on-year, with a gross margin increase of 2.88% [3]. Product Contributions - Ethylene-vinyl acetate (EVA) revenue was 764.94 million yuan, down 3.92% year-on-year, while the gross margin decreased by 5.27% [3]. - Polypropylene specialty materials generated 800.71 million yuan, down 4.47% year-on-year, with a stable gross margin [3]. - Epoxy derivatives revenue increased by 26.75% to 535.21 million yuan, with a gross margin improvement of 10.60% [3]. Business Development - The company aims to build a leading "specialized, refined, unique, and innovative" industrial cluster in various new materials fields, including new energy materials, biological materials, and electronic materials [4]. - Significant projects include a 200,000-ton EVA production line expected to be operational by the end of 2025, and a 10,000-ton lithium battery additive facility planned for completion in Q3 2025 [4][5]. - The company is also developing solid-state battery materials in partnership with Beijing Weilan New Energy, with some products already validated by downstream customers [4][5]. Strategic Moves - The company announced plans to merge its wholly-owned subsidiary, Lianhong (Shandong) Chemical Co., to enhance management efficiency and reduce costs [7]. - Lianhong Chemical, established in 2004, has significant assets and revenue contributions, including a 90,000-ton/year acetic acid production capacity [7].