Focusing on High-End Track! Lianhong New Materials' 240,000-Ton Unit Completed! List of Projects Under Construction Exposed, EVA/POE/PEE

Recently, the Lianhong Gerun Integrated ProjectThe handover ceremony of the 240,000 tons/year polyether polyol (PPG) unit was grandly held on-site, marking a significant milestone in the construction of this key project unit.Polyether polyol is one of the main raw materials for synthesizing polyurethane and is widely used in furniture, automotive, and construction materials industries. The commissioning of this facility holds significant strategic importance in addressing the shortage of high-end polyether supply domestically and enhancing the independent controllability of the industrial chain.

Trace back to the project starting point，On December 19, 2022, Lianhong New Materials Technology Co., Ltd. issued the "Announcement on the Investment and Construction of an Integrated Project for New Energy Materials and Biodegradable Materials by its Holding Subsidiary." Lianhong Greenrun (Shandong) New Materials Co., Ltd. is a subsidiary of Lianhong New Materials Technology Co., Ltd.The projectIt is a major implementation project in Shandong Province with a total investment.12.5 billion yuan, covering an area of more than 1,600 acres.Currently, the overall image progress exceeds80%, planned to be completed and put into operation by the end of 2025.

The project covers multiple core units and supporting facilities.， 1.3 million tons/year DMTO unit (methanol-to-olefins unit), 200,000 tons/year EVA unit (ethylene-vinyl acetate copolymer unit), 300,000 tons/year PO unit (propylene oxide unit), 50,000 tons/year PPC unit (polypropylene carbonate unit), 20,000 Nm³/h PSA unit (hydrogen purification unit), general layout storage and transportation, supporting utilities and auxiliary production facilities, etc.

What are the projects under construction for Lianhong New Science & Technology, and which projects are about to start production?

（1) 200,000 tons/year EVA, using LyondellBasell tubular process technology, planned to be put into production by the end of 2025.

（2) High-end POE (polyolefin elastomer) photovoltaic film material, 100,000 tons per year, has entered equipment installation and is planned to be completed and handed over by the end of 2025.

（The lithium battery additive project, with a planned annual capacity of 4,000 tons of VC (vinylene carbonate), is scheduled to be completed and put into operation in the third quarter of 2025.

（The PPC (polypropylene carbonate) project, with a capacity of 50,000 tons per year, is planned to be put into production by the end of 2025.

（5) The electronic-grade high-purity specialty gas unit, with an annual capacity of 10,000 tons, has been successfully commissioned. Its main products, ultra-high-purity electronic-grade hydrogen chloride and electronic-grade chlorine, are of excellent quality and have already been supplied to industry-leading companies such as TSMC and Shanghai Xinsheng.

EVA photovoltaic encapsulant material, POEUHMWPE、PEEK also has a layout.

Lianhong New Materials is a supplier of new material products and solutions, primarily engaged in the research and development, production, and sales of advanced polymer materials and specialty fine materials. Its business segments include new energy materials, biodegradable and bio-based materials, electronic materials, and other specialty materials.

From the product perspective, Lianhong Xinke is...EVA photovoltaic film material is the core main product, accounting for 26% of revenue. At the same time, there are layouts in high-end new material fields such as POE, UHMWPE, and PEEK. The existing product matrix has covered various categories such as EVA, VA, UHMWPE, PLA, electronic specialty gases, PP, EO, EOD, and EC, forming a diversified product structure focused on high value-added fields.

Image source: Lianhong New Science and Technology

The EVA unit adopts ExxonMobil’s tubular reactor technology, with a production capacity of over 150,000 tons per year. Upon the commissioning of the ongoing 200,000 tons per year EVA unit, the total EVA capacity will exceed 350,000 tons per year, mainly producing high value-added products such as photovoltaic film materials. In addition, the 90,000 tons per year VA unit can ensure the supply for both existing and under-construction units.The raw materials for the EVA device VA are supplied completely and stably.

In other products that have already been launched,UHMWPE products also focus on high-end applications, covering categories such as lithium battery separator materials, high-performance fiber materials, and sheet materials. They are widely used in fields such as new energy batteries, energy storage, marine industry, and safety protection. The 20,000-ton/year UHMWPE facility adopts a newly developed continuous process technology through cooperative development and has successfully produced five grades of high-end separator materials, fiber materials, and other products.

In the field of biomaterials, the company's polylactic acid (The PLA technology route is very robust, covering the entire industry chain from starch to high-gloss pure lactic acid and then to polylactic acid, with a production capacity reaching 130,000 tons. The product line includes a full range of high, medium, and low gloss pure series. Additionally, the poly(propylene carbonate) (PPC) project will also be put into production before the end of the year, with self-sufficient raw materials, further reducing costs and upgrading the level.

In addition to products that have already achieved mass production, Lianhong New Materials is also actively expanding incremental business areas, with a focus on advancing key initiatives.POE project construction. The 100,000 tons/year POE project is planned to be completed and handed over by the end of 2025.

It is worth noting that,POE, as the second largest type of photovoltaic encapsulant material, forms an effective complement with EVA in the photovoltaic encapsulant supply landscape. POE photovoltaic encapsulants have significant advantages in terms of PID resistance, aging resistance, and water-blocking performance. They are particularly suitable for the encapsulation needs of new types of photovoltaic cells, such as N-type and BC cells. In the future, they will synergize with EVA to help the company seize the initiative in the new photovoltaic materials market.

In the more forward-looking field of specialty engineering plastics, Lianhong New Materials has made arrangements.On August 12, at the PEEK sector, Lianhong New Materials stated on the investor interaction platform that it has completed the technical development and pilot testing of PEEK-related products. The company is ready for industrialization and will seize the opportunity for project construction.

As one of the special engineering plastics with the best overall performance,PEEK possesses high rigidity and toughness, excellent heat resistance, physicochemical stability, biocompatibility, and wear-resistant self-lubricating properties. The industry is currently in a rapid growth phase, with broad development prospects in high-end and emerging fields such as medical, semiconductor, and humanoid robots. This strategic layout will also open up long-term growth opportunities for the company.

Mid-term report shows significant increase in net profit.43%, the new product begins to gain traction.

Lianhong New MaterialsIn the first half of 2025, the main revenue was 2.911 billion yuan, a year-on-year decrease of 12.13%; the net profit attributable to the parent company was 161 million yuan, a year-on-year increase of 14.15%; the net profit excluding non-recurring gains and losses was 160 million yuan, a year-on-year increase of 43.21%.

Regarding the reasons for the performance changes, Lianhong New Technology stated that the year-on-year decline in operating income was due to a decrease in the prices of some products, while the year-on-year growth in net profit was attributed to a decrease in raw material prices and the introduction of new products by the company.EC, UHMWPE, electronic special gases, and PLA have started contributing to profits.

In terms of research and development, Lianhong New Science and Technology’s R&D investment1.35 billion yuan, a decrease of 24.57% year-on-year. As of the first half of 2025, it holds 283 authorized patents and has independently or collaboratively developed core technologies such as EVA/UHMWPE/PLA. Some projects (such as XDI) have been included in the national key research and development plan, breaking the foreign monopoly.

Looking at the industrial layout of Lianhong New Science and Technology, in each emerging materials sector,Not necessarilyFocusing on intensive cultivation in the high-end field rather than short-term attempts to gain popularity.EVA's steady effort，To lithium battery materials,The diversified expansion of PLA and PPC, followed by the forward-looking layout of PEEK, demonstrates strong competitiveness across all business segments. The explosive growth in profits is the inevitable result of sustained efforts, with immense potential for future development, making it highly promising.

Editor: Yun Simeng (Carrie）