Luxi Chemical forms joint venture to resolve inter-company competition

Luxi Chemical Group will form a joint venture with Cangzhou Dahua and Sinochem Plastics. Luxi Chemical will contribute RMB 2.55 million for a 51% stake in the RMB 5 million registered capital venture, aimed at resolving potential horizontal competition in the polycarbonate business as committed by Sinochem Group in December 2020. This initiative consolidates sales resources and enhances market synergy among the affiliated entities.

This transaction is part of broader related-party dealings projected for 2026, totaling RMB 937,298.00万元. These include RMB 693,531.00万元 for raw material purchases, RMB 18,914.00万元 for services received, RMB 161,513.00万元 for product sales, and RMB 63,340.00万元 for services provided. In 2025, cumulative related-party transactions with controlling parties and their subsidiaries amounted to RMB 40.04亿元 as of the disclosure date.

The independent directors and the board of directors of Luxi Chemical have approved the joint venture and the projected 2026 related-party transactions, affirming that these activities are fair, transparent, and do not harm the company’s financial health or independent operations.