Wote Co., Ltd. Expands Production Capacity with Bulk Supply of New LCP

On October 9th, Water Co., Ltd. (002886.SZ) stated on the investor interaction platform that the new LCP production capacity in Chongqing has already begun supplying products to customers in batches, and PEEK has also gradually obtained customer orders.

On May 19th of this year, the wholly-owned subsidiary of Water Co., Ltd., Chongqing Water Zhicheng New Material Technology Co., Ltd.The annual production of 20,000 tons of LCP resin materials project (Phase I and Phase II) and the annual production of 1,000 tons of PAEK resin materials project (Phase I).Entering the mass production stage. With the full release of Chongqing Wote's capacity, Wote Corporation's total LCP production capacity will reach 25,000 tons.

In 2014, Water Corporation acquired the technology and equipment production line for LCP products from Samsung in Korea. By 2020, it had independently developed and completed a new LCP production line, successfully passing trial production in one go. In 2021, the company achieved the highest domestic LCP shipment volume. In the same year, it announced the construction of a new 20,000-ton LCP resin project. Through the path of "introduction—digestion—innovation," Water Corporation has realized...Vertical integration from resin synthesis to films and fiber products.Its LCP film-grade resin can be adapted to various processing techniques.5G base station antennas, AI server connectors, and other high-frequency scenarios.Verification passed.

In response to the growing downstream applications of LCP, Water Corporation is deepening its cooperation with existing downstream customers in the telecommunications and consumer electronics sectors, particularly focusing on their needs for high-frequency and high-speed transmission components in 5G/6G, computing power, and AI servers. On the other hand, the company is also exploring the use of LCP materials in new fields such as new energy vehicles.

In the PEEK field, Water Corporation chooses a "synthesis + modification + profile" full-chain breakthrough path. In September 2024, Water Corporation will translate the above content into English.PEEK has been successfully put into production.The company's polyaryletherketone (PAEK) products mainly include polyetheretherketone (PEEK) and polyetherketoneketone (PEKK). Its holding subsidiary, Zhejiang KOSAY, has the capability to process PEEK profiles at a scale of hundreds of tons, which can meet the needs of industrial scenarios such as bearings and mechanical seals.

The company has not provided specific reasons for the postponement, only stating that it has taken into account the impact of changes in the external environment and combined it with actual needs. However, based on long-term development and industry trends, the company has made a prudent decision to continue advancing the implementation of fundraising investment projects.

Previously, on May 22, 2023, the company issued RMB ordinary shares (A shares) to specific targets, raising a total amount of no more than 1,195.8362 million yuan to invest in the construction of projects such as an annual production of 45,000 tons of special polymer materials and the headquarters base and synthetic biomaterials innovation center. The actual total amount of funds raised for the project was approved at RMB 599,999,989.68.

According to the plan, after the polymer materials project constructed by the wholly-owned subsidiary Chongqing Water Intelligent New Material Technology Co., Ltd. reaches full production, the company will add...An annual production capacity of 20,000 tons of liquid crystal polymer (LCP) modified materials, an annual production capacity of 20,000 tons of polyphenylene sulfide (PPS) modified materials, and an annual production capacity of 5,000 tons of high-performance polyamide (PPA) resin and modified materials.。

On August 22, Water Co., Ltd. released its semi-annual report for 2025, which showed that the company's operating revenue was 906 million yuan, an increase of 12.29% year-on-year; the net profit attributable to shareholders was 18 million yuan, an increase of 23.94% year-on-year.

In the first half of the year, Waters Corporation adhered to a platform strategy for specialty polymer materials, with revenue from specialty polymer materials reaching 443 million yuan, accounting for nearly 50% of total revenue. The shipment volume of core products such as LCP, PPA, PPS, and PEEK significantly increased.

Special polymer materials, as an important component of the new materials industry, are widely used in key areas of emerging industries such as high-frequency high-speed communications, new energy vehicles, information electronics, medical devices, electronic and electrical equipment, rail transit, precision instruments, robotics, AI servers, aerospace, and low-altitude economy industries due to their special superiority in properties such as heat resistance, insulation, corrosion resistance, dielectric constant, and mechanical strength.

With the continuous development of the economy and the emergence of new industries, the downstream applications of special polymer materials are constantly expanding, driving new market demand.