Binhua Plans to Go Public in Hong Kong with an Annual Revenue of 10 Billion

On July 29, Binhu Chemical Group Co., Ltd. ("Binhu Chemical") announced that the company is currently planning to issue shares overseas (H shares) and list on the Hong Kong Stock Exchange.

Binhua Co., Ltd. was successfully listed on the Shanghai Stock Exchange in February 2010. Its main business is the production, processing, and sales of organic and inorganic chemical products, with major products including caustic soda and propylene oxide.

Caustic soda is widely used in light industry, chemical industry, textiles, metallurgy, medicine, petroleum, and other sectors. According to statistics from the China Chlor-Alkali Industry Association, by the end of 2024, there were 172 caustic soda producers in China, with a total production capacity of 50.1 million tons, an increase of 1.69 million tons compared to 2023. In 2024, the national cumulative output of caustic soda exceeded 43.66 million tons, a year-on-year increase of 5.5%. The apparent consumption was about 40.6 million tons, up approximately 5% compared to 2023.

The company has a caustic soda production capacity of 610,000 tons, ranking among the top in Shandong Province. Among this, granular caustic soda capacity is 200,000 tons, making it the largest granular caustic soda producer in China; the flake caustic soda unit has a capacity of 200,000 tons, holding a leading position within Shandong Province. Meanwhile, the company is pursuing diversified and differentiated sales strategies, continuously expanding the market for food-grade caustic soda, and is currently the largest producer of food-grade caustic soda in China.

Propylene oxide is mainly used in the production of polyether polyols, propylene glycol, and various types of non-ionic surfactants. Among these, polyether polyols are important raw materials for the production of polyurethane foam, insulation materials, elastomers, adhesives, and coatings, with primary applications concentrated in furniture, automotive, construction, and industrial insulation fields. According to company statistics, the global production capacity of propylene oxide in 2024 is 17.925 million tons, of which domestic capacity is about 8.16 million tons. Domestic capacity is still in an expansion phase, with multiple new propylene oxide units coming on stream throughout the year, resulting in a year-on-year increase of 1.64 million tons in total capacity. In 2024, domestic propylene oxide production is expected to be about 5.5 million tons, with an apparent annual consumption of approximately 4.8 million tons.

The company has extensive experience and a solid customer base in propylene oxide production. Its propylene oxide facilities' technology and operational standards are among the leading levels in domestic chlorohydrin method production enterprises. Currently, the capacity reaches 510,000 tons, accounting for approximately 6.25% of the domestic capacity, with the product volume ranking among the top in the country.

According to financial data, Binhua Co., Ltd. achieved operating revenues of 8.892 billion yuan, 7.306 billion yuan, and 10.228 billion yuan for the years 2022, 2023, and 2024, respectively; the net profits attributable to shareholders were 1.178 billion yuan, 383 million yuan, and 219 million yuan, respectively.

Source: Wind

In the first quarter of 2025, the company achieved an operating income of 3.782 billion yuan, representing a year-on-year growth of 94.14%. The net profit attributable to shareholders was 96 million yuan, marking a year-on-year increase of 225.75%.

With China's economic transformation and industrial restructuring, the chlor-alkali industry is gradually evolving from traditional manufacturing towards high-end and intelligent development. Binhua Co., Ltd. will also establish a high-end electronic chemical base in northern China, a "new energy + chemical" zero-carbon demonstration park, a green low-carbon circular economy industrial park, and a new chemical materials industrial base, promoting industrial digitization.

Over the years, the company has been deeply engaged in the chlor-alkali chemical industry, consistently focusing on strengthening the industrial chain. It has built and put into operation the world's first industrial-scale oxygen cathode ion membrane electrolyzer unit, established the country's first trichloroethylene unit that transitioned from batch to continuous production, and developed the nation's first large-scale industrial particle caustic soda unit, breaking the monopoly of foreign technologies. The high-salinity wastewater generated from the glycerol-based epichlorohydrin unit is treated using catalytic wet oxidation to degrade TOC, making it the first enterprise in the country to recycle high-salinity wastewater back into the ion membrane caustic soda unit after treatment.

On June 29, 2025, the chlorohydrin process for propylene oxide and the calcium saponification process of the company successfully passed the expert acceptance organized by the China Chlor-Alkali Industry Association, becoming the first domestic enterprise to have its chlorohydrin process for propylene oxide production validated. This breakthrough technology certification not only marks Binhua Co., Ltd.'s achievement in key technological upgrades but also injects strong momentum into the green, low-carbon, and sustainable development of the propylene oxide industry.

With the deepening of globalization, Chinese chlor-alkali enterprises are actively expanding into international markets to enhance their international influence. This IPO in Hong Kong is an important step in advancing the company's globalization strategy, which will help accelerate the development of overseas business and enhance the company's international brand image and overall competitive strength.

As of the close on July 29, Binhu Chemical (601678) had a total market capitalization of 9.215 billion yuan.