Wankai New Materials Ranks in the "2024 Zhejiang Merchants National 500" List, Highlighting Robust Performance and Strategic Success

The Zhejiang Merchants National 500 list is considered a "barometer of China’s private economy" and serves as an important indicator of corporate competitiveness. According to the list, these 500 Zhejiang enterprises achieved a total revenue of 13.06 trillion yuan in 2023, marking a 5.24% increase compared to the previous year’s 12.41 trillion yuan.

Notable Achievements in the Half-Year

Headquartered in Haining, Zhejiang, in the heart of the Yangtze River Delta Economic Zone, Wankai New Materials has demonstrated significant potential for industrial collaboration. In the first half of 2024, the company reported robust results across production, sales, business operations, research and development, and international marketing. From January to June 2024, Wankai achieved a revenue of 863.43 million yuan, reflecting a year-on-year increase of 1.24%. The company's polyethylene terephthalate (PET) production and sales maintained steady growth, with a production volume of 1.39 million tons, up 8.35%, and sales of 1.35 million tons, an increase of 11.76%. Revenue from PET reached 859.62 million yuan, rising by 9.07%.

Wankai's Success Formula: Harnessing Strategic Adjustments and Cost Advantages for Market Expansion

In response to intensifying industry competition, Wankai has maintained strategic focus, promptly adjusting its operational strategies to emphasize efficiency. By optimizing product and customer structures and leveraging cost advantages, the company is actively expanding into overseas markets. Through cost reduction, efficiency enhancement, supply chain optimization, market expansion, research innovation, and management upgrades, Wankai aims to build momentum for long-term sustainable growth. The company has actively revised its operational strategies, focusing on increasing efficiency and reducing inventory while managing the rhythms of production, procurement, and sales. This approach aims to further enhance Wankai's quality-price brand. Starting in early 2024, Wankai adjusted its sales strategies and customer structure while capitalizing on the cost advantages of its Chongqing facility, continuously optimizing product orders and customer composition. The company also emphasizes expanding its domestic and international customer base while maintaining price stability and improving procurement strategies to enhance cost efficiency.

1. Expanding Overseas Markets and Global Operations

Wankai has strengthened its overseas marketing channels, integrating networks in Indonesia and Central Asia to maximize the impact of international markets. This strategy has led to overseas revenue of 313.67 million yuan in the reporting period, a 30.13% increase year-on-year. Additionally, the construction of a PET bottle production base in Nigeria has commenced. The project team is established, and most land permits have been obtained, with the core SSP equipment already procured. The project aims to start construction in Q4 2024, with completion targeted for the end of 2025.

2. Focusing on R&D Innovation to Enhance Core Competitiveness

Wankai has achieved significant milestones in research and development, continually strengthening its core competitive advantages. As of the date of the half-year report, the company has obtained 19 new patents, totaling 98 patents—ranking among the industry leaders. The innovative subsidiary, Zhejiang KaiPuQi New Materials Technology Co., Ltd., has begun to show potential. Established in September 2022, KaiPuQi aims to propel Wankai’s forward-looking initiatives in PETG, modified PET, and other novel polyester materials, actively incubating projects with strong market prospects and competitive advantages. The PETG and modified PET products developed by KaiPuQi find applications in the medical aesthetics, cosmetics, small appliances, and construction materials sectors, demonstrating promising market potential. Currently, KaiPuQi's production facility for flexible polyester has achieved stable production of membrane-grade PETG and sheet-grade PET. The PETG product line has reached a production milestone of over 10,000 tons in the first half of the year, increasing from 0.78 million tons last year to 1.25 million tons.

Wankai places great emphasis on technological accumulation in daily operations, establishing a Polymer New Materials Research Institute, an academic workstation, and a postdoctoral workstation. The research institute has made significant progress in key projects, further enhancing the company's core competitiveness. Notable projects include:

Bio-based PEF Project: Developed a bio-based high-barrier material, achieving the world’s first ton-scale trial in 2023, and is now supplying small batch orders of PEF (Polyethylene Furanoate).

Innovative Chemical Recycling for PET: Preliminary construction of the pilot test facility is complete, with laboratory research for all process stages underway.

New Heat-Resistant PETG Project: Focused on developing high-performance polyester materials for injection molding and sheet processing, targeting applications in home appliances and automotive sectors. This project is a collaborative research effort with strategic clients and is currently undergoing process verification.

Looking ahead, Wankai's R&D team will continue to proactively engage with clients, advance customer-oriented research, and enhance R&D capabilities to increase customer loyalty and expand the company's influence.

3. Accelerating MEG Project Construction for Integrated Industry Chain

Wankai is expediting the construction of its MEG project to achieve an integrated industrial chain. Currently, the foundation works for the project and the installation of major equipment are in their final stages, with all process pipelines and equipment installations accelerating. The overall project is in the final push for completion, aiming for distributed ignition in October and full operation by the end of the year.

MEG is a critical raw material for PET, accounting for over 30% of raw material costs. The "120,000-ton MEG and 10,000-ton electronic-grade DMC co-production project" aims to enhance overall competitiveness. The project employs an advanced natural gas-based MEG production process, ensuring high purity and low impurities, thereby mitigating raw material price volatility risks. The project site is located near China’s largest marine gas field, ensuring a stable supply of low-cost raw materials. The introduction of a 600,000-ton syngas production facility will further reduce production costs.

4. People-Centric, Green Production: Upholding Safety and Quality Management

Wankai adheres to the philosophy of "Human Oriented, Pioneering Innovative, Scientific Management, Growth Together." Through extensive production practices, the company has accumulated rich experience in operational and engineering construction, particularly excelling in safety production, energy conservation, and environmental protection. In terms of safety and environmental protection, Wankai places great emphasis on environmental management, strictly adhering to the ISO14001 environmental management system standards during project construction. The company ensures that all pollutants are treated and discharged in compliance with standards, achieving green, low-carbon, and clean production.

For quality management, Wankai has obtained ISO9001/14001 quality and environmental management system certification, HAS23000 halal management certification, ISO50001 energy management certification, and Coca-Cola certification, meeting EU and FDA requirements. The company’s new materials testing center has been accredited by ISO/IEC17025 (CNAS). Furthermore, Wankai has established comprehensive quality, environmental, and safety management manuals, procedures, and guidelines, creating a full-process management system that ensures daily management and quality control align with international standards.

Future Outlook: Global Expansion with Sustainable Development

Through years of operational accumulation, Wankai's PET bottle-grade resin has gained favor with many globally renowned brands, establishing strong partnerships with leading food and beverage manufacturers such as Nongfu Spring, Coca-Cola, Yibao, and Wahaha. The company's high-quality customer base enhances its brand influence, and long-term collaboration with premium clients facilitates continuous improvement in product quality and operational management capabilities, providing a solid market foundation for future product introductions.

Moving forward, Wankai will continue to implement its internationalization strategy by developing overseas warehouses and production bases to explore global markets, enhance market share, and improve service response times. We will further align with national initiatives such as the "Belt and Road Initiative" and the "Maritime Silk Road," actively pursuing potential market demand for bottle-grade PET products stemming from these strategies.