With a total investment of 661 million yuan, Wanwei High-tech invests in PVA optical film

On the evening of March 11, Wanwei High-Tech plans to issue A-shares to its controlling shareholder Wanwei Group to raise a total of no more than 3 billion yuan (inclusive). The net proceeds after deducting relevant issuance expenses will all be used for the 200,000 tons/year ethylene-based functional polyvinyl alcohol resin project and the annual production of 30 million square meters of polyvinyl alcohol (PVA) optical film projects for high-generation panels.

Among them, the total investment of the PVA optical film project for high-generation panels is 661 million yuan, and 400 million yuan of raised funds are planned to be invested.

It is reported that the core function of PVA optical film is to convert natural light into polarized light. By working together with liquid crystal molecules, it can accurately control whether the light passes through, thereby forming a clear image. As the core film material of liquid crystal display polarizers, the technical level of PVA optical films directly determines the performance of polarizers.

Wanwei High-tech stated that this fundraising project is a key measure for the company to extend its main business chain and enhance its core competitiveness. Through the simultaneous advancement of the 200,000 tons/year ethylene-based functional polyvinyl alcohol resin project and the annual output of 30 million square meters of high-generation panel polyvinyl alcohol (PVA) optical film projects, the company is opening up the basic chemical industry. It is expected that the entire industry chain of high-end functional film materials will be channeled. Ethylene-based PVA, as a high-quality basic raw material, will provide key raw material support for the PVA optical film project for high-generation panels. At the same time, it can form deep synergy and efficient linkage with the company's existing PVB resin, high-strength and high-module PVA fiber, VAE emulsion and other downstream businesses.

The implementation of this fundraising project will, on the one hand, further promote the upgrading of Wanwei's high-tech production capacity and significantly enhance the large-scale supply capacity of high-end products such as high-purity PVA and PVA optical films; on the other hand, it will help the company build a national production capacity layout covering the four major production bases in Anhui, Guangxi, Inner Mongolia, and Jiangsu, form a more even and efficient regional supporting system, significantly enhance the nearby service capabilities for downstream customers, and continue to consolidate the company's leading position in the PVA industry.

Data show that Wanwei High-tech's main business is the research and development, production and sales of polyvinyl alcohol (PVA) and its derivatives. The company's main products are PVA, PVA optical film, polarizer, high-strength and high-module PVA fiber, PVB resin, PVB film and other products.

According to media reports, affected by the rising prices of upstream raw materials, Wanwei High-tech has recently adjusted the price of all types of PVA products by 2,000 yuan per ton. The report pointed out that this price adjustment is closely related to the rise in crude oil prices. A person from the marketing department of the company's marketing center said that the price adjustment is mainly driven by upstream suppliers. The upstream raw materials of PVA include vinyl acetate, ethylene, etc., both of which are highly related to the price of crude oil. As the price of PVA rises, the prices of downstream products may also fluctuate accordingly.