Sinochem International forms JV to boost polycarbonate sales

Sinochem International (Holdings) Co., Ltd., through its wholly-owned subsidiary Sinochem Plastics Co., Ltd., will establish a joint venture named Sinochem Polycarbonate Sales (Liaocheng) Co., Ltd. with Luxi Chemical Group Co., Ltd. and Cangzhou Dahua Co., Ltd. The new entity, with a registered capital of RMB5,000,000, will see Luxi Chemical contribute RMB2,550,000 (51%), Cangzhou Dahua RMB1,500,000 (30%), and Sinochem Plastics RMB950,000 (19%).

This transaction, approved by Sinochem International's Tenth Board of Directors on December 22, 2025, constitutes a connected transaction as all parties are under the common control of China National Chemical Corporation. The independent directors' specialized committee also approved the proposal, citing its benefits for business development and alignment with company interests.

The joint venture aims to integrate sales resources, enhance market coordination efficiency, and avoid internal consumption, with no significant impact on Sinochem International's financial condition or operating results. As of the disclosure date, connected transactions between Sinochem International and its affiliates controlled by China National Chemical Corporation since the beginning of 2025 total RMB5.9 bn.