Xinhecheng And Sinopec Cooperative Investment Project

Xinhecheng announced that the company’s board of directors agreed to sign the "Letter of Intent for Joint Venture and Cooperation" between the company and China Petroleum & Chemical Corporation Zhenhai Refining and Chemical Branch. The two parties will establish a joint venture company as the main body of the project to jointly invest in a methionine production facility. The total investment amount is About 3 billion yuan.

As the first stock in the small and medium board, Xinhecheng (002001) started from a small school with a loan of 100,000 yuan. Under the leadership of Chairman Hu Baifan, it has grown step by step. Now it has grown to a market value of more than 30 billion yuan and revenue A world-renowned vitamin company with 6 billion yuan, and a significant flavor and fragrance company in China.

The methionine project with the mission of "recreating a new and successful" also embodies the company's idea of achieving integration in the large chemical industry.

Methionine is an essential amino acid containing sulfur. It participates in protein synthesis and must be obtained from outside. It is mainly used in poultry feed. The global methionine, especially the domestic methionine market, continues to develop rapidly by more than 5% every year. Due to oligopoly, high technical barriers, product gross profit margins are mostly above 30%, and the current market supply is slightly oversupply.

Shandong Xinhecheng Amino Acid Co., Ltd. was established in May 2013 and is located in the Advanced Manufacturing Industry Park of Binhai Economic and Technological Development Zone, Weifang City, Shandong Province. It is a wholly-owned subsidiary of Xinhecheng. The methionine project adopts integrated equipment, self-sufficient intermediates, and obvious cost advantages. The existing production capacity of 50,000 tons will generate benefits when it was put into operation in 2017. Last year, the company set an additional 4.9 billion yuan to raise funds to be used for large-scale production of methionine. It is expected to add 250,000 tons in 2021, and the total production capacity will reach 300,000 tons by then, making it the world's top four methionine companies. Calculated at the bottom price of 20,000/ton, an income scale of 6 billion yuan will be formed, which can create a new Hecheng.

In addition, the high-end special materials PPS and PPA operated by the company are widely used in automobiles, daily necessities, engineering equipment and other fields, and have broad development prospects. These two projects can be regarded as a ten-year sword. The business project was established as early as 2007, and the research and development began in 2007. The company has successfully produced PPS and other polymers. Considering that the promotion and certification cycle of PPS and PPA products is relatively long, Xinhecheng is currently advancing through a joint venture with DSM.

Over the years, Xinhecheng has adhered to the mission of "innovating fine chemicals and improving quality of life", focusing on fine chemicals, adhering to the concept of innovation-driven development and growth in market competition, and constantly innovating and developing nutrients, flavors and fragrances, and new polymer materials. And functional chemicals such as raw materials, in the fields of nutrition, flavors and fragrances, raw materials, new polymer materials, etc., for customers in more than 100 countries and regions around the world in animal nutrition, human nutrition, medicine, life and health, environmental protection, Engineering plastics and other aspects provide solutions to continuously improve the quality of human life with high-quality, healthy and green products, and create sustainable value for stakeholders.