On the evening of April 10, 2026, Dongfang Shenghong announced that its third level wholly-owned subsidiary, Lianyungang Hongke New Materials Co., Ltd. (referred to as "Hongke New Materials"), signed a "Cooperation Intent Agreement for Xuwei New Area Investment Projects" with the Xuwei New Area Management Committee of Lianyungang on April 9. The agreement stipulates that Hongke New Materials will invest in the construction of a new aromatic hydrocarbon industry chain quality and efficiency improvement project in Xuwei New District, Lianyungang, with an estimated total investment of approximately 13.33 billion yuan.
Specifically, the construction content of this project mainly includes 150000 tons/year TDI, 50000 tons/year HDI, and 300000 tons/year
PCThere are a total of 10 key units, including 240000 tons/year caustic soda and 240000 tons/year bisphenol A. The investment cycle of the project has not been determined yet.
According to the agreement, the Xuwei New Area Management Committee of Lianyungang will fully assist Hongke New Materials in handling relevant procedures such as company registration, project approval, safety, environmental protection, fire protection, planning and construction, quality supervision, and production acceptance. Hongke New Materials strictly follows the planning and industry standards of Xuwei New Area in Lianyungang to construct infrastructure such as water supply, drainage, heating, power supply, roads, pipe galleries, internal fire stations, hazardous chemical parking lots, and accident ash yards within the project scope.
The announcement states that Hongke New Materials has signed a "Cooperation Intent Agreement" with the aim of implementing the "1+N" development strategy and enhancing the company's competitiveness. If the project is successfully implemented and completed, the company can further extend downstream in the aromatic hydrocarbon industry chain, enriching the layout of new energy and new material products.
Dongfang Shenghong also emphasizes that this agreement is only an intentional agreement, and the signing of this agreement does not affect the independence of the company's business. As of the announcement date, the parties to the cooperation have not yet carried out specific cooperation matters. The impact on the company's financial situation and operating results for 2026 and subsequent years will depend on the implementation and execution of subsequent cooperation between the two parties, project approval status, final project plan and implementation status.
Public information shows that Dongfang Shenghong is a core listed company under the "Fortune Global 500" Shenghong Group. It is an energy and chemical enterprise that vertically integrates the entire industry chain and has deeply laid out new energy and new material businesses. The company's main business includes industries such as petrochemicals and new chemical materials, polyester and synthetic fibers. It has a 16 million ton/year integrated refining and chemical plant, a 2.4 million ton/year methanol to olefin (MTO) plant, and a 700000 ton/year propane dehydrogenation (PDH) plant.
Not long ago, Dongfang Shenghong released a performance forecast, expecting to achieve a profit of 100 million to 150 million yuan by 2025, turning losses into profits year-on-year. During the reporting period, the company's 16 million tons/year Shenghong Refining and Chemical Integration Project and other industrial sectors operated smoothly with smooth production and sales. Since 2025, the central price of crude oil has slowly declined, and the overall center of gravity of petrochemical product prices has shifted downwards. The company has taken various measures, such as optimizing crude oil procurement strategies, strengthening industrial sector linkage, adjusting product output structure, and enriching downstream high value-added chemical products. The comprehensive profitability has improved compared to 2024.
