Building secure chains, leading green futures: Huitong Shares Fully Lay Out to Fortify the Modified Materials Supply Chain Moat

On May 27, 2026, Orinko Advanced Plastics Co., Ltd. officially released its 2025 ESG Report in English, systematically disclosing to global investors, customers, and partners the company’s progress in environmental, social, and governance areas. The report highlights Orinko’s full upstream and downstream industrial chain layout and the achievements of its globalization strategy, demonstrating the responsibility and strength of a Chinese new materials enterprise in green transformation and global competition.

In the context of global supply chain restructuring and increasing volatility in key raw material markets, supply chain autonomy and controllability has become a core survival baseline and competitive moat for high-performance polymer modification material companies. As a leading domestic modified materials enterprise, Huitong Co., Ltd. has adopted a systematic strategic approach to build a three-dimensional supply chain system featuring “a vertically integrated closed loop + full horizontal category coverage.” This system spans three core segments—base resins, auxiliary additives, and PCR materials—and fundamentally addresses common industry challenges such as raw material supply, quality assurance, and geopolitical risk transmission through deep equity-based partnerships, globally coordinated deployment, and green circular transformation, thereby laying a solid foundation for the company’s long-term and stable development.

I. Vertical Full Chain Extension: Three Major Sectors Collaborate to Achieve Fully Controllable Autonomous Supply Chain

The essence of competition in the modified materials industry is the competition of supply chains. Weitong Co., Ltd. abandons the traditional single procurement model and actively extends deeply into the upstream core segments. It adopts differentiated layout strategies based on the characteristics of different raw materials, connecting the entire industrial chain from basic raw materials to modified applications.

1. Main resin material: Deep collaboration with industry leaders + dual-driven in-house polymerization to build a stable supply foundation

For synthetic resin, the Company adopts a dual-driven model of “external strategic partnerships + internal proprietary polymerization” to build a multi-tiered, full-gradient resin supply system. It has established long-term, stable strategic partnerships with leading domestic and international petrochemical companies and, through in-depth cooperation, joint development, and information sharing, has secured a diversified and stable supply of general-purpose and engineering-grade base resin materials. At the same time, it is accelerating the proprietary industrialization of high-end specialty resins to fundamentally address the “bottleneck” challenge in advanced materials: Huitong’s long-chain carbon nylon LCPA polymerization project has achieved stable mass production, while the synthesis projects for key specialty resins such as PPA and PEEK are being advanced in parallel. Upon completion, these projects will enable full-chain independent control from resin polymerization to compounding and application.

This model combining deep collaboration with independent strategic deployment not only secures the raw material supply for the company’s core products, but also provides a dual buffer in terms of price and delivery during periods of market volatility, while breaking the monopoly of foreign manufacturers in the high-end specialty resin sector.

2. Auxiliary Materials and Additives: Deep Multi-Mode Integration to Overcome Bottlenecks in Key Links

For key excipients, the Company has formed deeply bound communities of shared interests with leading enterprises in the industry through strategic equity participation, joint venture partnerships, long-term strategic agreements, and other means.

Establish a presence in the high-end mineral filler sector by directly connecting with premium mineral sources, reducing intermediary circulation links, and ensuring the long-term stable supply and consistent quality of core fillers.

Continuously advance the upstream of key additives and gradually improve the full-chain resource assurance system from basic raw materials to functional additives.

This vertical extension model not only secures the supply capacity of core raw materials at the source, but also achieves risk sharing and benefit sharing through multi-level cooperation, significantly enhancing the supply chain’s resilience.

3. PCR Materials: Creating an Industry-Benchmark Full-Chain Closed Loop

As a vital component of the company’s supply chain system and a key lever for green transformation, Huitong has elevated PCR circular economy to a group-level strategy. In 2025, it established its wholly owned subsidiary, Huitong Environmental, as a specialized operating platform for the PCR business, truly realizing a vertically integrated full industrial chain closed loop of “collection - dismantling - sorting - pelletizing - modification - application.”

Full-chain controllability: We are building a diversified recycling network, focusing on high-quality post-consumer waste resources such as appliance casings and automotive components. Through AI-enabled intelligent sorting and high-performance modification technologies, we address industry pain points such as performance degradation of recycled materials and the control of impurities and odors, ensuring stable quality in every batch of PCR feedstock. The company is focusing on the two core regions of East China and South China. The total PCR/PIR capacity of Huitong Environmental Protection Industry Holdings and its affiliated joint ventures has reached 300,000 tons per year, providing large-scale, stable supply capability.

Full-process traceability: We have established an industry-leading unique identification and traceability system and built a full-lifecycle PCR traceability platform, assigning each product an exclusive “ID card” to record end-to-end information such as raw material sources, process parameters, and quality inspection reports. Huitong’s PCR products have obtained 182 international certifications, including GRS, UL 2809, and ISO 14021, covering mainstream materials such as PP, ABS, PC, and PA, with a full-spectrum range of recycled content from 15% to 100%, meeting global customers’ requirements for low-carbon compliance and transparency.

Same-level closed-loop recycling: Downstream focuses on two benchmark models—home appliance original-level recycling and Car-to-Car automotive recycling—achieving end-to-end same-level closed-loop recycling for typical products such as control boxes and air outlet grilles, so that waste materials are transformed back into new parts with identical performance, building a green and sustainable product lifecycle. The PCR strategy delivers significant environmental and industrial value, reducing carbon emissions by over 200,000 tons per year, greatly lowering dependence on petrochemical-based raw materials, driving the industry from a “linear economy” to a “circular economy,” enhancing supply chain resilience, and becoming an important growth engine for the company.

Ecological Layout: Through a combination of equity control and strategic joint ventures, establish multiple specialized PCR production bases nationwide, forming an industrial supply network that covers diverse recycling sources and all categories of recycled materials, ensuring stable, efficient, and large-scale supply of PCR feedstock.

2. Comprehensive Horizontal Category Coverage: A One-Stop Solution to Diversify Supply Chain Risks

Building on its vertically integrated value chain extension, Orinko Advanced Plastics is simultaneously advancing horizontal category expansion, establishing a comprehensive product matrix covering general modified materials, engineering modified materials, specialty engineering materials, PCR materials, and functional additives. This enables the company to provide downstream customers with one-stop material solutions while further diversifying supply chain risks.

The company’s products cover general-purpose modified PP, ABS, HIPS, and PE; engineering-modified PC, PA, PBT, PPO, and PET, as well as various alloy materials. Its mass-produced core offerings also include specialty engineering materials such as LCPA, PEEK, and PPS, complemented by self-controlled auxiliary additives like glass fiber and talc. This enables the company to provide one-stop customized solutions for diverse sectors including automotive, home appliances, 3C, new energy, and rail transit. This full-product portfolio not only enhances customer stickiness, but also allows the company to quickly adjust its product mix to hedge risks when the supply of a single raw material fluctuates.

III. Globalized Collaboration: Building a Resilient Supply Network Covering the Globe

In response to geopolitical risks and changes in the global trade landscape, Weitong Co., Ltd. is committed to implementing an overseas layout strategy of "multiple bases, small scale, Local For Local." It steadily advances the construction of a global supply chain network, gradually achieving localized coverage and services for core markets.

In the Southeast Asian market, the Thailand base has achieved mass production and supply, while the Vietnam subsidiary has officially commenced operations, providing nearby services to key local customers in the automotive and home appliance sectors. In the European market, through the acquisition of Italy’s OMIKRON, the company has rapidly entered the European high-end modified materials market, achieving deep synergies in technology, customers, and supply chains. In the Americas market, both the U.S. subsidiary and the Mexico subsidiary have been established, and efforts are being accelerated to build localized supply chain systems and production capacity layouts, laying a solid foundation for serving key customers in North and Latin America in the future.

This global and multi-layered layout effectively mitigates the risks of disruptions in a single regional supply chain, enhancing the company's supply capability and service level in the global market, and enabling the provision of more stable and efficient localized material solutions for global customers.