Huidi Technology plans to raise 580 million yuan to expand production of polyurethane new materials, focusing on capacity upgrading and market expansion

Huid Technology Plans to Raise 580 Million Yuan for Polyurethane New Material Expansion, Focusing on Capacity Upgrading and Market Development. Recently, Shanghai Huid Technology Co., Ltd. responded to the Shanghai Stock Exchange's review inquiry regarding its 2025 A-share issuance to specific investors, detailing plans to raise 580 million yuan for the "Jiangsu Huid New Materials Co., Ltd. Annual Production of 305,000 Tons of Polyurethane New Materials Project." The project will add 125,000 tons of polyester polyol materials and 180,000 tons of polyurethane new materials production capacity, with an estimated after-tax internal rate of return of 24.14% and a comprehensive gross margin of 15.41%. The announcement reveals that the project's products include 160,000 tons of leather-grade polyurethane resin, 20,000 tons of polyurethane adhesive, 95,000 tons of polyester polyol, 20,000 tons of grafted polyester polyol, and new products such as copolyester and alcoholysis-modified polyol (0.5 million tons each). Notably, new products account for only 3.27% of the total output, all of which have completed pilot testing with high technical maturity. The company recently stated that upon completion, the project will achieve two core objectives: First, enhancing the efficiency of existing leather-grade polyurethane resin production through intelligent equipment upgrades, alleviating the 74.76% capacity utilization pressure at the Shanghai Jinshan base. Second, expanding into high-end application fields such as new energy battery packaging and composite flexible packaging, with polyurethane adhesive products focusing on the new energy vehicle interior market, currently in sample trial production with multiple leading automakers. According to data from Shuaijie Consulting, China's polyurethane resin production for leather applications reached 1.648 million tons in 2024, marking a 6.6% year-on-year increase, with an expected 2% annual growth rate over the next five years. Within specific sectors, automotive interior leather demand showed significant growth, reaching 45,000 tons in 2024—a 30.5% year-on-year increase—driven primarily by Tesla and other new energy vehicle manufacturers' shift toward PU synthetic leather. The company has implemented a multi-dimensional capacity absorption strategy: In East China, it leverages its Taixing base to serve Shandong's sports goods leather market (annual demand: 10,000-15,000 tons) and Anhui's automotive interior sector. For customer expansion, it deepens partnerships with international Tier 1 suppliers like Shilian Group while advancing supply chain integration with domestic new energy vehicle manufacturers. In product structure, the company focuses on increasing the proportion of high-margin solvent-free resins, which accounted for over 30% of its leather polyurethane business revenue in 2024. The fundraising project involves a total investment of 800 million yuan, with 68.44% allocated to fixed asset procurement and construction. Equipment procurement costs decreased by 16.61% compared to previous fundraising, mainly due to process improvements and lower stainless steel raw material prices. Non-capital expenditures accounted for 5.61%, meeting regulatory requirements. Regarding the underperformance of the previous fundraising project "180,000-ton annual polyurethane resin production capacity," the company explained that it voluntarily suspended TPU capacity expansion (current utilization rate: 50%) and that the Fuding base's focus on general-purpose products resulted in lower gross margins (approximately 3 percentage points lower than the Jinshan base). This project has strategically excluded TPU operations while focusing on the company's core strengths. The benefit analysis employs conservative parameters: product pricing is based on the lower limit of the average price over the past three years, and raw material costs are estimated at 5% above the 2024 average. As of June 2025, the company's cash reserves stood at 473 million yuan, with 355 million yuan in disposable funds after excluding restricted capital. With projected net operating cash flow of 329 million yuan over the next three years and a minimum cash reserve of 528 million yuan, the 580 million yuan fundraising will effectively cover a 750 million yuan funding gap. The one-year construction period is expected to generate 3.565 billion yuan in additional annual sales revenue upon full production, further solidifying the company's leadership in the East China polyurethane market. This article is AI-assisted compilation based on public data and does not constitute investment advice.