On September 2, 2026, Huafon Chemical unveiled a RMB 6.85 billion asset restructuring plan in China under which it intends to acquire 100% of Zhejiang Huafon Synthetic Resin and Zhejiang Huafon Thermoplastic Polyurethane through a combination of shares and cash, bringing polyurethane resin and TPU businesses into the listed company and extending its existing polyurethane materials portfolio.
The transaction values Huafon Synthetic Resin at RMB 4.15 billion and Huafon Thermoplastic at RMB 2.7 billion.
Of the total consideration, approximately RMB 1.021 billion will be paid in cash and RMB 5.829 billion through shares. Huafon Chemical plans to issue around 690 million shares at RMB 8.45 each.
The industrial logic is straightforward.
Huafon Synthetic Resin specializes in polyurethane resins for synthetic leather, while Huafon Thermoplastic focuses on thermoplastic polyurethane elastomers, or TPU.
Huafon Chemical already operates major businesses in spandex, polyurethane stock solutions and adipic acid. The acquisition therefore adds adjacent downstream material categories rather than taking the company into an unrelated business.
TPU is particularly significant.
The material combines elasticity with thermoplastic processing characteristics and is used across footwear, films, cables, automotive components, electronics and other applications.
Huafon Group already operates across a broad polyurethane value chain including polyester polyols, polyurethane stock solutions, polyurethane resins, spandex, microfiber materials and TPU.
Bringing the two businesses under Huafon Chemical could therefore create closer links in procurement, production, R&D and sales.
The deal also has a longer history.
When Huafon Chemical, then known as Huafon Spandex, acquired Huafon New Materials in 2019, related parties committed to eventually injecting the synthetic-resin and TPU businesses once the conditions were appropriate.
The September transaction is effectively the next stage of that restructuring.
The sellers have also made sizeable earnings commitments.
Huafon Synthetic Resin is expected to generate no less than RMB 1.011 billion in cumulative net profit from 2026 through 2028, while Huafon Thermoplastic has committed to at least RMB 823 million over the same period.
Combined, the two businesses are committed to generating at least RMB 1.834 billion in net profit over three years.
The transaction has not yet closed. It still requires shareholder approval as well as review by the Shenzhen Stock Exchange and registration with the China Securities Regulatory Commission.
If completed, however, the direction is clear: Huafon Chemical is doubling down on polyurethane by adding more downstream materials rather than moving away from its core chemistry.
