Plastic Industry Updates & Resources

【Li Auto Passes European NG-eCall Certification】December 9th,Li AutoAnnounced that its intelligent cockpit platform has successfully passed the European CEN 17240:2024 Next Generation Emergency Call System (NG-eCall) standard testing and has been certified by the Luxembourg Ministry of Transport. This testing was conducted byQuectel Wireless SolutionsProvide support for the project by supplying automotive-grade 5G modules and the NG-eCall QuecOpen solution, enabling the transmission of multi-dimensional information such as voice and video.Li AutoBeing among the first automotive companies globally to pass this certification signifies its entry into the international leading ranks in the field of intelligent safety.

【Lianhong Green: Successful One-Time Feed Startup!】At 3:40 AM on December 8, with the successful production of qualified EVA resin particles, the Lianhong Gerun 200,000 tons/year EVA plant has completed the entire process and achieved a successful one-time feed startup. The Lianhong Gerun 200,000 tons/year EVA plant utilizes LyondellBasell's LUPOTECH TS tubular reactor technology to produce 200,000 tons of ethylene-vinyl acetate copolymer resin particles annually. The operational flexibility ranges from 70% to 110%, with 13 product grades. The products are mainly used in injection molding products, medical devices, pharmaceuticals and food packaging, agricultural films, and photovoltaic materials.

【Bohai Petrochemical 100% Equity to Be Sold】Recently, Bohai Chemical announced that the company is planning to sell 100% of Bohai Petrochemical's equity and acquire control of Teda New Materials through the issuance of shares and cash payment (hereinafter referred to as "this transaction"). Preliminary calculations indicate that this transaction is expected to constitute a major asset restructuring as defined by the "Administrative Measures for Major Asset Restructuring of Listed Companies." This transaction will not result in a change of the company's actual controller and does not constitute a backdoor listing. According to the "Shanghai Stock Exchange Stock Listing Rules" and other relevant regulations, this transaction constitutes a related party transaction. As this transaction is still in the planning stage and related matters are uncertain, in order to protect the interests of investors and avoid abnormal fluctuations in the stock price, in accordance with relevant regulations of the Shanghai Stock Exchange, the company has applied for a suspension of trading. The company's stock will be suspended from trading starting from December 8, 2025, with the suspension expected to last no more than 10 trading days.

【CAAM: The Auto Industry's Profit Hollowing Trend Is Very Severe】On December 8, the Passenger Car Association stated that the hollowing trend of profits in the automotive industry is very severe, with significant profit diversion from upstream. Various regions are vigorously promoting the implementation of the "two new" policies, effectively releasing the vitality of domestic demand. The effects of the policy for replacing old consumer goods with new ones are notably expanding, but the improvement in the automotive industry's profitability is significantly lagging behind that of other consumer goods. As the national effort to combat "involution" continues, the automotive industry's profits are shrinking due to the fact that the profit margins in the non-ferrous metal mining and selection industry exceed 30%, the upstream steel industry's profits have significantly improved, the battery industry is highly profitable, and the high costs associated with smart driving.

【LG Energy Solution Secures $1.4 Billion Battery Order from Mercedes, Accounting for 8% of Last Year's Revenue】On December 8, South Korean battery manufacturer LG Energy Solution announced in a regulatory filing that it has signed a contract worth 2.06 trillion won (approximately 1.4 billion USD) with Mercedes-Benz Group.Electric vehicleBattery supply contract. It is worth noting that this amount is equivalent to 8% of LG Energy's revenue of 25.6196 trillion won last year.