Shenma Co., Ltd.: Plans to Invest 3.28 Billion Yuan in 200,000 Tons of Nylon 6 Chip and 50,000 Tons of Adiponitrile Project

On May 13, Shenma Co., Ltd. announced that the company plans to use the remaining raised funds from the terminated "Annual Production of 240,000 Tons of Bisphenol A Project (Phase II)" to implement new fundraising investment projects, including a 200,000-ton Nylon 6 chip project and a 50,000-ton Adiponitrile project, with a total investment of 2,386.0111 million yuan.

A 200,000-ton nylon 6 chip project is being implemented by the controlling subsidiary, Henan Shengma Polymate Materials Co., Ltd., with a total investment of 899,120,000 yuan, of which 328,000,000 yuan will be funded by raised capital. The project is located in the Pingdingshan Nylong New Materials Industrial Agglomeration Zone in Henan Province. It includes the construction of three nylon 6 production lines and supporting facilities. It is expected to have a post-tax internal rate of return of 8.87% and a static payback period of 10.95 years. As of December 31, 2024, the project has cumulatively invested 537,926,200 yuan.

The 50,000-ton adiponitrile project is implemented by the wholly-owned subsidiary Henan Shennong Aidian Chemical Co., Ltd., with a total investment of 1,486,891,100 yuan, of which 273,000,000 yuan is raised funds. The project adopts direct hydrogen cyanide technology for butadiene, with an expected post-tax internal rate of return of 8.05% and a static payback period of 11.31 years. As of December 31, 2024, the project has accumulated an investment of 1,000,200,900 yuan, and due to the impact of public health events, it is expected to be completed by the end of December 2025.

The company stated that the nylon 6 chip project will improve the layout of the high-end nylon industry chain, and the hexamethylene diamine project will help solve the "bottleneck" problem of key raw materials. Both projects have completed filing and environmental impact assessment approval, with environmental protection investments of 6.26 million yuan and 96.50 million yuan, respectively.