Jinfang Fund Increases Investment in Wantong Special Plastics by 500 Million

Jinfa Technology Co., Ltd. announced on January 3 that its wholly-owned subsidiary, Zhuhai Wantong Special Engineering Plastics Co., Ltd. (hereinafter referred to as "Wantong Special Plastics"), has made progress in introducing external investors for its capital increase and share expansion: the state-owned capital Jinfang Fund has completed a paid-in capital contribution of 500 million CNY to Wantong Special Plastics. The premium part of the subscription amount paid by Jinfang Fund, amounting to 48,083,556.69 CNY, has been included in the capital reserve of Wantong Special Plastics. Wantong Special Plastics has completed the change of registered capital and related business registration and has obtained a new business license.

Earlier, Jinfa Technology announced on November 22, 2024, that Wantong Special Plastics would introduce the state-owned Jinfang Fund, with a subscription price of 500 million CNY. Jinfa Technology's chairman, Chen Pingxu, not only participated in the project planning throughout but also personally joined the related investment enterprise as a limited partner.

As an important investment institution with a background of state-owned capital, Jinfang Fund intends to subscribe to the newly added registered capital of Wantong Special Plastics at a price of 26.09 CNY for every 1 CNY of registered capital, with a total subscription scale reaching 500 million CNY. After the transaction is completed, the valuation of Wantong Special Plastics will exceed 3.6 billion CNY.

The participation of the state-owned fund in the capital increase reflects its high recognition of the future development of Wantong Special Plastics. The enterprises previously invested by Jinfang Fund are mostly leaders in the new materials field, including Shennani Nylon and Liaoning Jinfa. Its entry will not only bring capital support to Wantong Special Plastics but may also assist the enterprise in seizing opportunities in domestic substitution and industrial chain upgrading through policy and resource collaboration.

In the special engineering plastics sector, Jinfa Technology has invested 410 million CNY to build a synthetic base of about 800 acres. The products of this base mainly include semi-aromatic nylon PA10T/PA6T, liquid crystal polymers (LCP), polyphenylene sulfide (PPS), polyarylether sulfone (PPSU/PES), polyarylether ketone (PAEK), NMT (Nano Molding Technology), and LDS (Laser Molding Technology) materials.

According to Jinfa Technology's 2024 mid-term performance report, the sales volume of major products in special engineering plastics reached 9,200 tons, a year-on-year increase of 12.79%. The company's annual production of 6,000 tons of PPSU/PES synthetic resin units successfully passed the trial run in June 2024. In addition, the annual production project of 15,000 tons of LCP synthetic resin is about to be put into production.

Wantong Special Plastics currently holds 117 valid patents and has 55 patents pending, including seven patent technologies announced in November, such as high melting point LCP films and aromatic sulfone polymers.

Against the backdrop of strong domestic demand for special engineering plastics, Wantong Special Plastics will bring greater imagination space for the overall revenue and profit growth of Jinfa Technology.