Wanwei High-Tech to Raise Up to RMB 3 Billion via Private Placement to Expand High-End PVA Production

Wanwei High-Tech announced that the company plans to issue shares to its controlling shareholder, Wanwei Group, to raise no more than 3 billion yuan. After deducting relevant issuance costs, the net proceeds will be entirely used for a 200,000 tons/year ethylene-based functional polyvinyl alcohol resin project and a 30 million square meters/year high-generation panel polyvinyl alcohol (PVA) optical film project.

From the perspective of Wanwei High-Tech's, the two major fundraising projects are both capacity construction projects, representing important measures for the company to extend its main business chain and strengthen the synergy of the industrial chain. It seems there was a partial translation within the original Chinese text (""), which I will now fully translate: From the perspective of Wanwei High-Tech's private placement fundraising projects, the two major fundraising projects are both capacity construction projects, representing important measures for the company to extend its main business chain and strengthen the synergy of the industrial chain.

Among them, the 200,000 tons/year ethylene method functional polyvinyl alcohol resin project plans to use 2.6 billion yuan of raised funds, aiming to build a new 200,000 tons/year ethylene method functional polyvinyl alcohol resin facility, and to match it with a 360,000 tons/year vinyl acetate and a 300,000 tons/year methyl acetate facility, including a production area, storage area, auxiliary production and utility engineering facilities area, and an administrative office area.

The project to produce 30 million square meters of high-generation panel polyvinyl alcohol (PVA) optical film per year plans to use 400 million yuan of raised funds. It aims to construct a facility for producing 30 million square meters of high-generation panel PVA optical film per year, divided into two PVA high-generation polarizer supporting optical film production lines. The first line is designed with a product width of 4.8 meters and an annual capacity of 13 million square meters; the second line is designed with a product width of 5.7 meters and an annual capacity of 17 million square meters. Additionally, the production plant needs to undergo corresponding cleanroom renovation to meet the production environment requirements for PVA high-generation polarizer supporting optical film, and the installation of corresponding power equipment and facilities to meet the power demands of the production equipment.

Wanwei Hi-Tech stated that the implementation of this fundraising project will, on the one hand, further advance the company’s production capacity upgrade and significantly enhance the large-scale supply capability of high-purity PVA and PVA optical films—key high-end products; on the other hand, it will support the company in establishing a nationwide production capacity layout covering its four bases in Anhui, Guangxi, Inner Mongolia, and Jiangsu provinces, thereby forming a more balanced and efficient regional support system, significantly strengthening its ability to serve downstream customers locally, and continuously consolidating its leading position in the PVA industry.

Wanwei High-Tech has been deeply involved in the research, development, production, and sales of PVA and related products for many years. It is the first company in China to achieve independent research and development, large-scale production, and market sales of PVA optical films. It is also the only professional manufacturer in mainland China that has achieved batch production and sales of PVA optical films.Form an integrated full industry chain layout with PVA industry at its core.

The company has currently built two specialized and large-scale PVA optical film production lines.

The first is an annual production line of 5 million square meters of PVA optical film, with a product width of 1600mm, mainly used in small-sized liquid crystal display (LCD) polarizers, polarized glasses, and other fields.

Second, a 700 PVA optical film production line, with a product width of up to 3400mm, can meet the matching requirements of large-size liquid crystal display polarizers, forming a product layout covering small-size to large-size display applications.

In addition, the company's new 2000 square meter per year TFT polarizer wide-width PVA optical film production line is about to be completed and put into operation, further enriching the company's project construction and industrialization experience in the high-end PVA optical film field, and providing mature construction management and large-scale production guarantees for subsequent projects.

Financial reports show that Wanhui High-Tech's performance has fluctuated in recent years. From 2022 to 2024 and the first three quarters of 2025, the company recorded revenues of RMB 9.942 billion, RMB 8.263 billion, RMB 8.030 billion, and RMB 5.958 billion, respectively; net profit attributable to shareholders of the parent company amounted to RMB 1.369 billion, RMB 342 million, RMB 370 million, and RMB 380 million, respectively.

PVA

China is the world's largest producer of PVA, but its products are mainly conventional and general-purpose types. High-purity, high-stability, and specialized PVA have long relied on imports. According to industry data, the overall import dependency of high-end PVA in China exceeds 45%, with import dependency for optical display, photovoltaic energy storage, and pharmaceutical/food-grade PVA exceeding 80%. The import dependency for high-end PVA resin used in polarizing films reaches as high as 92.4%, almost entirely monopolized by Japanese companies. In 2024, China's import volume of high-end PVA reached nearly 40,000 tons, with an import value exceeding 1.1 billion US dollars. The unit price of high-end optical-grade and special PVA products is 35%-60% higher than that of domestic conventional products, causing downstream enterprises to bear high procurement costs and supply chain risks for a long time.

Constrained by limitations of the traditional calcium carbide process and insufficient accumulation of core technologies, domestic high-end PVA exhibits significant gaps compared to international advanced levels in critical indicators such as purity, degree of polymerization, degree of alcoholysis, and batch-to-batch stability, rendering it unable to meet the stringent requirements of high-end industries—including new-energy vehicles, photovoltaics, display panels, eco-friendly packaging, and pharmaceutical & healthcare sectors. With the rapid development of downstream emerging fields, demand for high-value-added PVA-based products—including PVA optical films, PVB resins and interlayers, and water-soluble films—is continuously surging. Domestic demand for high-end PVA is projected to grow at an average annual rate exceeding 12% over the next five years, and the supply-demand gap will continue to widen.

This Wanwei High-Tech fundraising project focuses on the construction of high-end ethylene-based PVA production capacity. Compared to traditional processes, ethylene-based PVA can achieve larger-scale facilities, significantly reduce the energy consumption and carbon emissions per unit of product, and offer superior product purity and stability, meeting the stringent material requirements of high-end downstream application areas.

PVA optical film

In recent years, the domestic liquid crystal panel industry has entered a period of rapid expansion, with the continuous release of high-generation panel capacity (G8.5 and above), combined with the accelerated penetration of new display technologies such as OLED and Mini LED, driving the rapid expansion of the polarizer industry and the comprehensive acceleration of the localization process. The trend of domestic polarizers replacing imported products has become increasingly evident.

This fundraising project of Wanwei High-Tech focuses on the construction of wide-format, high-generation PVA optical films, aligning with the domestic display industry's trend towards localization and self-reliance. It can precisely fill the supply gap for high-end PVA optical films in China, effectively meeting the urgent demand from downstream polarizer and panel manufacturers for a stable supply and localization of core raw materials.

In 2025, China’s domestic demand for polarizing films will exceed 650 million square meters, corresponding to a market size of nearly RMB 50 billion. According to industry-authoritative production quotas, the annual domestic demand for polarizing films in 2025 translates into an actual demand for PVA optical films of approximately 260 million square meters, over 70% of which is for high-end PVA optical films. Driven by surging demand for large-size TV panels, automotive displays, and high-end industrial control panels, the annual growth rate of high-end PVA optical film demand is expected to remain above 12%.