Hubei Yihua Chemical Industry Co., Ltd.

Hubei Yihua Chemical Industry Co., Ltd. is a manufacturing company listed on the Shenzhen Stock Exchange since 1996. It operates primarily in the chemical raw materials and products sector, as well as in coal mining and cleaning. The company has established over 30 subsidiaries and 16 high-tech enterprises across various regions in China, including Hubei, Inner Mongolia, Qinghai, and Xinjiang. Yihua is recognized for its phosphorus chemical production bases in Yichang and its coal chemical and chlor-alkali production facilities in western China. Yihua's main business lines include the production of fertilizers, chemical products, and coal. The company is the largest producer of pentaerythritol in Asia and the second largest globally, with significant production capacities for urea, phosphate ammonium, and polyvinyl chloride. Yihua leverages its comprehensive resource advantages through upstream and downstream integration, ensuring a stable supply of essential raw materials from its self-owned mines. The company is committed to technological innovation and environmental protection, aiming to transition into a greener, low-carbon, and innovation-driven chemical enterprise.

1.Comprehensive Resource Advantages: The core raw materials required by one of its major subsidiaries, Xinjiang Yihua—including coal, crude salt, and limestone—are sourced from its self-owned mines. This ensures independent and controllable supply of essential raw materials, creating strong synergistic effects and establishing an exemplary industrial system. 2.Circular Economy Advantages: YIHUA adopts the operation mode of upstream and downstream integration, which not only ensures the stability of company’s profits, but also effectively reduces costs in the integrated operations. 3.Scale Advantages: YIHUA has been committed to the production and sales of fertilizers, chemical products and coal. YIHUA is the largest Pentaerythritol producer in Asia and the second largest in the world. The production capacity of its main products such as urea, diammonium phosphate and polyvinyl chloride is at the forefront of the industry. The open-pit coal mine operated by Xinjiang Yihua boasts one of the largest single-mine production capacities in China, giving it a certain scale advantage. 4.Technological Advantages: YIHUA attaches great importance to technological research and development, and accelerates the construction of its own research and development system, bringing together a large number of technical experts in related fields to empower industrial growth. YIHUA undertakes numerous major national and regional science and technology projects, speeds up the transformation and application of technological achievements, and drives market-oriented new product development based on our industrial capabilities. These efforts cultivate new profit growth drivers for achieving high-quality development. 5.Advantages in Production Base Layout: The company has established diammonium phosphate production bases in phosphorus-rich regions in Yichang and neighboring areas like Songzi, along with production bases in western regions such as Inner Mongolia, Xinjiang, and Qinghai, which are abundant in coal, electricity, and natural gas resources. This optimized distribution enhances the company’s sustained profitability and long-term development capabilities. 6.Advantages in Environmental Protection: The company remains committed to the strategic focus on environmental protection, firmly pursuing the path of prioritizing ecology and green development. The company continues to increase investment in environmental governance and protection measures, improving its clean production standards and reducing environmental risks to promote high-quality development through high-level protection. Ultimately, this comprehensive approach has achieved the unity of economic, social, and environmental benefits. 7. Advantages in Brand and Channel: The company possesses both brand equity and distribution channel advantages. The “Yihua” brand trademarks are nationally renowned, and its products such as urea, polyvinyl chloride, and caustic soda have formed stable sales channels nationwide after years of development. Its leading products, pentaerythritol and diammonium phosphate, are exported to Japan, South Korea, India, Pakistan, and Southeast Asia. Through rigorous production management systems, the company ensures consistent product quality and reliability, thereby enhancing market competitiveness and establishing a valuable brand credibility. 8.Advantages in Management: The company has established a comprehensive and refined management system encompassing strict budget and construction cost controls, optimized market operations, strategic and win-win cooperation to enhance corporate efficiency. Furthermore, the company has implemented progressive employee welfare initiatives, including corporate annuities schemes and equity incentive programs to foster greater workforce engagement and strengthen organizational cohesion.