Wuhan Luhua Hongjin New Material Co., Ltd.

Wuhan Luhua Hongjin New Material Co., Ltd. is a joint venture established by Zibo Luhua Hongjin New Material Co., Ltd. and Wuhan Boda Jiaosheng Investment Co., Ltd. to support the Wuhan 800,000 tons/year ethylene project, mainly engaged in deep processing of petrochemical products. The company was approved for establishment by the Wuhan Administration for Industry and Commerce on June 27, 2011, with a registered capital of 520 million yuan, and was completed and put into production in 2014. It mainly uses C5 fractions, C9 fractions, and cracked fuel oil, by-products of ethylene cracking units, as raw materials, and conducts comprehensive utilization through distillation separation, polymerization, hydrogenation, crystallization, and other chemical processes to produce C5 petroleum resin, C9 petroleum resin, C5/C9 copolymer petroleum resin, aromatic solvent oil, refined dicyclopentadiene, industrial naphthalene, and other products. The total investment of the first phase was approximately 730 million yuan, making it the largest ethylene post-processing production base of its kind in China. The company is located in Wuhan Chemical Industry Park, adjacent to Sinopec-SK (Wuhan) Petrochemical Company, covering an area of approximately 230,000 m2 (336 mu). Wuhan Chemical Industry Park is a key industrial park, a demonstration zone for the construction of a resource-conserving and environment-friendly society and circular economy in the Wuhan urban circle, and a leading ecological and technological chemical park; Wuhan Chemical Industry Park will focus on building seven ethylene downstream industrial chains, with a total investment exceeding 70 billion yuan, and our company owns two of them: the carbon five and carbon nine industrial chains. The eight units of this project all adopt the most advanced production processes at home and abroad, use automated control technology, and feature high raw material utilization and processing depth, which can maximize enterprise benefits. The company's major shareholder, Zibo Luhua Hongjin New Material Co., Ltd., holds 88% of the company's shares. Zibo Luhua Hongjin has been listed on the National Equities Exchange and Quotations with the code 833831. Currently, Luhua Hongjin is actively advancing toward the main board.