Hubei Yihua launches caustic soda project, adjusts guarantee portfolio

Hubei Yihua Chemical Industry has confirmed the successful commissioning and full-capacity operation of its 200,000-ton per annum caustic soda project. The project, implemented by its wholly-owned subsidiary Hubei Yihua New Energy Co., Ltd., is part of the company's strategy to upgrade its chlor-alkali chemical industry in line with "Yangtze River Protection" policies. This initiative aims to enhance energy efficiency, improve product quality, and optimize the chlor-alkali product structure. The company cautions investors that the project's economic benefits remain uncertain due to fluctuating market supply and demand for raw materials and main products.

Concurrently, Hubei Yihua adjusted its external guarantee portfolio. In August 2025, the company provided a guarantee of CNY 56,955.19 million for Xinjiang Yihua Chemical Industry Co., Ltd., within previously approved limits for entities with asset-liability ratios exceeding 70%. The total outstanding external guarantees by Hubei Yihua and its holding subsidiaries amount to CNY 1,043,111.66 million, representing 141.68% of the company's latest audited net assets. Guarantees to entities outside the consolidated financial statements total CNY 233,728.06 million, or 31.75% of net assets, with no overdue guarantees.