Zhonglun New Materials: Second BOPP Film Production Line Expected to Commence Operations in Second Half of Next Year

Zhonglun New Materials stated in response to investors' inquiries on December 12.The company's first BOPP production line was officially put into operation in November 2025, and the second production line is expected to be put into operation in the second half of 2026.After the first production line was launched, we have successfully achieved stable mass production of BOPP capacitor film products with varying thicknesses. Among these, the thin film products have completed downstream customer verification and entered the mass production delivery stage. The ultra-thin film products have been successfully produced and are currently undergoing downstream customer verification. The company's BOPP production line focuses on the thin and ultra-thin film product sectors, with a single production line expected to have an annual capacity of approximately 2,400 tons (depending on the product thickness). The overall project is planned to include nine production lines, with the first phase putting two into operation. Subsequent investments in production lines will be phased in according to changes in market demand.

The company's subsidiary, Xiamen Changsu, has pioneered the development of BOPA film specifically for solid-state batteries, which is used as the outer layer of aluminum-plastic film in the solid-state battery sector. This product is currently in the market promotion stage. In addition, Xiamen Changsu, in collaboration with aluminum-plastic film manufacturers, battery companies, and other industry chain partners, has drafted and published standards for aluminum-plastic films used in solid-state batteries, set to be implemented in September 2025. In the future, as the industrialization process of solid-state batteries accelerates, the company will closely monitor the pace of market penetration and simultaneously promote the production and sales of solid-state battery-specific film materials to achieve step-by-step, large-scale growth.

The company's current annual production capacity for polyamide 6 (PA6) chips is 145,000 tons, with the production base located in Quanzhou. Currently, there is a total PA6 chip production capacity of 210,000 tons per year under construction. Among this, 140,000 tons per year is part of the company's initial public offering (IPO) fundraising project, and 70,000 tons per year is being built with the company's own funds. This total capacity under construction is expected to be operational by 2027. The company currently has 14 BOPA film production lines with a total annual capacity of 145,000 tons. These are distributed as follows: 12 production lines at the Xiamen base with an annual capacity of 105,000 tons, and 2 production lines at the Quanzhou base with an annual capacity of 40,000 tons. In terms of capacity under construction, the Quanzhou base plans to add 2 new production lines with a total annual capacity of 40,000 tons, expected to be operational in 2026 and 2027, respectively. The Indonesia Changsu project plans to build a total of 4 production lines in two phases, with a total annual capacity of 90,000 tons. The first production line of the first phase is expected to be operational in the first half of 2026, adding an annual BOPA film capacity of 25,000 tons for the company. Once all domestic and international capacities under construction are fully operational, the company's planned annual BOPA film production capacity will reach 275,000 tons.

Zhonglun New Materials is an innovative enterprise specializing in new materials, based on film materials and driven by special materials. Adhering to the core strategy of "multi-matrix, high-precision, and globalization," it is committed to deeply exploring the forefront of new materials and building a world-class industrial ecosystem of new materials that is healthy, safe, and environmentally friendly.