"dual giants join forces! wanhua teams up with pingmei to boost pc production by 200,000 tons!"
On May 21, Huashen New Materials (Henan) Co., Ltd. completed its business registration in Ye County, Pingdingshan City, Henan Province, marking the official implementation of the strategic cooperation between Wanhua Chemical and China Pingmei Shenma Group in the polycarbonate (PC) sector.
The joint venture has a registered capital of RMB 360 million. Wanhua Chemical holds a 55% stake, and Henan Pingmei Shenma Polycarbonate Materials Co., Ltd. holds 45%. The legal representative is Li Peng. This marks the second in-depth cooperation between the two parties following their establishment in 2020 of Huashen New Materials (Ningbo) Co., Ltd. to build a 180,000 t/y hexamethylenediamine (HMDA) project. It will further integrate their respective advantages in technology, capacity, and market presence to jointly create a new domestic high-end PC industry hub.
Wanhua Chemical is a global leader in advanced chemical materials, with businesses spanning five major clusters: polyurethane, petrochemicals, fine chemicals, emerging materials, and future industries. The company operates 14 major production bases and plants worldwide, with products sold in more than 100 countries and regions. Currently, its total market capitalization stands at RMB 241.1 billion, firmly maintaining its position as a leading enterprise in China’s chemical industry.
2025 Annual + 2026 Q1 Performance
In 2025, Wanhua Chemical achieved operating revenue of RMB 203.235 billion, up 11.62% year on year; net profit attributable to shareholders of the parent company was RMB 12.527 billion, down 3.88% year on year, mainly due to cyclical fluctuations in the global chemical industry.
In the first quarter of 2026, the company's operating performance recovered significantly, achieving operating revenue of RMB 54.052 billion, up 25.50% year-on-year; net profit attributable to shareholders of the parent amounted to RMB 3.718 billion, up 20.62% year-on-year; net profit attributable to shareholders of the parent excluding non-recurring gains and losses was RMB 3.594 billion, up 18.20% year-on-year. In the first quarter, the company's gross margin was 14.73%, up 0.70 percentage points quarter-on-quarter, and net cash flow from operating activities reached RMB 6.857 billion, a year-on-year surge of 1,079.87%, demonstrating strong profitability and cash flow.
Wanhuah Chemical Accelerates Strategic Layout
Since May 2026, the company has consecutively established three joint ventures and announced multiple capacity expansion plans.
Huashen New Materials (Henan) Co., Ltd., established on May 21, will focus on advancing the construction of Pingmei Shenma’s Phase II 200,000 t/a PC project and its supporting 150,000 t/a phosgene project. The project adopts Wanhua Chemical’s independently developed “phosgene interfacial polycondensation” process and received approval on March 26, 2026. Upon completion, Pingmei Shenma’s total PC production capacity will reach 300,000 t/a.
At present, Wanhua Chemical has 600,000 tons/year of polycarbonate (PC) capacity and 576,000 tons/year of bisphenol A capacity. Its PC capacity ranks first in China. The first public disclosure of the environmental impact assessment for the second 600,000 tons/year PC project at its Fujian base (Wanhua Chemical (Fujian) Isocyanate Co., Ltd.) was released on March 2, 2026; the first 600,000 tons/year PC project completed its initial environmental impact assessment disclosure in April 2025.
In May this year, Wanhua Chemical’s independently developed modified polycarbonate material, Clarnate® A1225BK, passed the MS certification of the Hyundai Motor Group in South Korea, making Wanhua Chemical the first Chinese company to enter its supply system for modified polycarbonate used in automotive lamps.
On May 18, Luxin Luhua (Hubei) New Material Technology Co., Ltd. was established in Yichang, Hubei Province, with a registered capital of RMB 100 million. It is 51% owned by Luyin Investment and 49% owned by Wanhua (Hubei) New Energy Materials Technology Co., Ltd., a subsidiary of Wanhua Chemical. The company will build a high-performance metal powder materials project with a planned total investment of RMB 450 million, including a 200,000-ton-per-year atomized powder production line and a 100,000-ton-per-year ultra-pure mineral powder beneficiation production line. Its products will mainly be high-purity iron powder and high-compression atomized powder for lithium iron phosphate battery cathode materials, directly supporting Wanhua Chemical’s iron phosphate project in Yidu.
Wanhua (Hubei) New Energy Materials Technology Co., Ltd. was established in March this year as a joint venture between Wanhua Chemical and Xingfa Group, with a registered capital of 600 million yuan. The iron-based phosphoric acid iron project with an annual production capacity of 240,000 tons is currently under construction and is expected to be put into production in 2027. In addition, a project for 600,000 tons of phosphoric acid iron and supporting industries, with an investment of 15 billion yuan, has already commenced in 2025, aiming to create a complete industrial chain for lithium iron phosphate cathode materials.
On May 13, Wanhua and Nantong Haidi Holdings Co., Ltd. jointly established Wandi New Materials Technology (Yantai) Co., Ltd. in Yantai, with a registered capital of 10 million yuan. Wanhua Chemical holds a 70% stake, while Nantong Haidi holds a 30% stake. The company's business scope includes new materials technology promotion services, chemical product sales, and more. The legal representative is Sun Shuchang, who also serves as the chairman of Huashen New Materials (Ningbo) Co., Ltd. and the head of Wanhua Chemical's Functional Chemicals Division. Nantong Haidi is deeply engaged in the new materials supporting field, and this cooperation will complement the industrial resources with Wanhua Chemical, jointly expanding the new materials application market.
On May 8th, Wanhua announced two major polyether technical transformation and capacity expansion projects: The Wanhua Chemical (Penglai) differentiated polyether project will add a new production line with an annual capacity of 15,000 tons for epoxy soybean oil polyether, and will upgrade the existing facilities to achieve continuous production of water reducer and PEG polyether; The polyether polyol capacity expansion (Phase I) project will expand production by 262,000 tons per year in the Yantai Chemical Industry Park. After the expansion, the production scale will reach 400,000 tons per year of POP polyether, 300,000 tons per year of DMC polyether, and 100,000 tons per year of PPG230 polyether.
At present, Wanhua Chemical has become the world’s largest supplier of polyether, with a total production capacity reaching 2.32 million tons per year in 2025. This capacity expansion will further strengthen its strategic synergies with its MDI/TDI businesses and meet growing market demand.
According to Wanhua Chemical’s plan, the company’s external equity investments in 2026 are expected to reach RMB 2.22 billion, mainly focusing on the deployment of battery materials, the development of new materials businesses, and the implementation of its internationalization strategy.
With the implementation and advancement of a series of projects, Wanhua Chemical will continue to consolidate its leading position in the global chemical new materials sector and promote the development of China’s chemical industry toward high-end, green, and intelligent transformation.
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