I. Company Milestones

Huada Chemical Group Co., Ltd. (“Huada Chem”), formerly known as Yantai Huada Chemical Industry Co., Ltd., traces its development as follows:

On February 8, 1993, Yantai Wanhua Synthetic Leather Group contributed assets from its original Polyurethane Resin Branch Factory and Polyester Polyol Workshop, and partnered with Dainippon Ink and Chemicals, Incorporated (DIC) to establish Yantai Huada Chemical Industry Co., Ltd.;

In early 2003, Yantai Wanhua Synthetic Leather Group acquired all shares held by DIC, transforming the Company into a wholly state-owned subsidiary under Yantai Wanhua Synthetic Leather Group;

On September 30, 2004, the Company was restructured into a privately-owned enterprise;

On July 22, 2013, the Company was renamed Huada Chemical Group Co., Ltd.

II. Company Profile

The Company is one of the earlier domestic chemical new material manufacturers to achieve large-scale production of polyurethane resins and among the first in the industry to pass ISO9001 quality system certification. Currently, the Company operates through 6 subsidiaries, and its business operations encompass the research & development, manufacturing, and sales of a diverse product portfolio, including polyester polyols, polyurethane resins for synthetic leather, polyurethane resins for shoe soles, polyurethane adhesives, water-based polyurethane resins, solvent-free polyurethane resins, and thermoplastic polyurethane (TPU) resins, with annual sales exceeding RMB 3 billion.

The Company initially imported its primary production technologies from Japan. Subsequently, while bolstering its commitment to independent research, development, and innovation, it forged strategic collaborations with prestigious academic and research institutions, including East China University of Science and Technology, Beijing Technology and Business University, and the Yantai Institute of Advanced Materials and Green Chemical Industry Technology (an affiliate of the Lanzhou Institute of Chemical Physics, Chinese Academy of Sciences). Currently, it has also integrated and adopted advanced process technologies from South Korea. Through continuous digestion, absorption, improvement, development, and innovation, it has now possessed a relatively complete modern R&D theory and system, and mastered multiple proprietary R&D technologies and core independent intellectual property rights.

Since its restructuring in 2004, Huada Chemical has steadily implemented the "Produce Near Market" development strategy. While continuously upgrading the technological level of its Yantai headquarters plant, it has successively invested in building factories in areas where downstream customers are concentrated, such as Lishui in Zhejiang, Changshu in Jiangsu, and Xiao County in Anhui. Furthermore, It has also continuously built and improved an extensive and effective direct sales and distribution network nationwide. This has resulted in effective coverage of the key economic zones of the Bohai Rim and the Yangtze River Delta, and strong reach into the Pearl River Delta economic zone and inland regions.

III. Corporate Honors

Through unified effort and diligent management, Huada Chemical has garnered numerous honors owing to its outstanding operational performance:

In 2005, at the beginning of its restructuring, Huada Chemical was awarded the "Yantai SME Credit Enterprise" title by the Yantai Municipal Committee and Government; in November 2007, it was recognized as a "Shandong Provincial High-Tech Enterprise" by the Shandong Provincial Department of Science and Technology; in October 2008, it was named the "7th Consumer Satisfaction Unit of Shandong Province"; in June 2009, the "Research and Industrialization of  Water-based Polyurethane Resin for Synthetic Leather" was listed as a key research project by the Yantai Municipal Science and Technology Bureau; in 2011, the "Water-based Synthetic Leather Technology Transformation Project" was listed as a key national technological transformation project by the MIIT, "Huada Chemical" was named a "Shandong Provincial Famous Trademark", and in October, it was named the "8th Consumer Satisfaction Unit of Yantai City"; in 2012, it received the "National Top 10 Leather Chemical Enterprise" title; in 2013, it was recognized as a "Yantai Technology-based SME"; in 2014, it received the honorary certificate for "Polyurethane Industry's Glorious 20 Years – Exemplary Growth Enterprise" issued by the China Polyurethane Industry Association (CPUIA); in 2016, it received the honorary title of "Consultant Unit" from the Wenzhou Chamber of Commerce for Polyurethane Resin for Leather; in March 2019, the CPUIA appointed the Company as a "Standing Council Member Unit"; in June 2022, it was recognized as a Shandong Provincial "Specialized, Refined, Unique, and New" (SRUN) SME; in August 2022, it was recognized as a National-level SRUN "Little Giant" Enterprise; in December 2022, it was awarded the "High-Tech Enterprise" qualification by the Shandong Provincial Department of Science and Technology, Shandong Provincial Department of Finance, and Shandong Provincial Tax Service, State Taxation Administration; it was also designated as the "Yantai Municipal Enterprise Technology Center" by the Yantai Municipal Development and Reform Commission; in 2024, it received multiple honors including Yantai Zhifu District Intellectual Property Advantage Enterprise, Shandong Provincial Manufacturing Single-Champion Demonstration Enterprise, Provincial "Morning Star Factory Pilot Enterprise", and Municipal "Informationization Field Standards Implementation Pilot Enterprise"; in February 2025, it received the Yantai City 2024 "Breakthrough Zhifu" Outstanding Enterprise Award.

IV. Subsidiary Profiles

Huada Chemical Group currently has six subsidiaries, including:

Two holding subsidiaries:
Zhejiang Huada Resin Co., Ltd.
Jiangsu Huada New Materials Co., Ltd.

Four wholly-owned subsidiaries:
Huada Chemical (Yantai) Co., Ltd. (under Construction)
Huada Chemical (Anhui) Co., Ltd.
Shandong Huada Chemical New Materials Co., Ltd.
Yantai Daocheng Chemical Co., Ltd.

Yantai Daocheng Chemical Co., Ltd.
Established on June 25, 2002, with a registered capital of RMB 2.8908 million, Yantai Daocheng Chemical Co., Ltd. is a wholly-owned subsidiary of Huada Chemical Group Co., Ltd. It is a specialized company dedicated to the R&D, production, and sales of advanced, environmentally friendly surface materials. Currently, it is a pioneer in China in successfully developing water-based polyurethane resins for synthetic leather and microfiber synthetic leather, along with their application technologies. Additionally, the Company has successfully developed and established mature applications for solvent-free polyurethane resins for leather, reactive polyurethane hot melt adhesives (PUR) used in the textile, woodworking, home appliance, and automotive sectors, among other eco-friendly functional products. The Company possesses extensive technical experience in the synthesis and application of bio-based raw materials in polyurethane resins, supported by numerous successful application cases.

Zhejiang Huada Resin Co., Ltd.
Established in November 2005 with a registered capital of RMB 50 million, Zhejiang Huada Resin Co., Ltd. covers a building area of 14,000 square meters and has an annual production capacity of 80,000 tons. Just one year after commencing formal production, the Company ranked among the top 5 enterprises in the Lishui Economic Development Zone based on profit and tax contributions. It ranked second in profit and tax contributions within the Lishui Economic Development Zone for two consecutive years, 2007 and 2008. In 2007, it was awarded the "Star Enterprise of Lishui Economic Development Zone" title and also recognized as an "Enterprise with Output Value Exceeding RMB 200 Million in Lishui Economic Development Zone". In 2008, the Company was named "Advanced Unit for Work Safety in Lishui Economic Development Zone", received the "Unit Tax Contribution Award of Lishui Economic Development Zone", and was awarded the "Meritorious Enterprise of Lishui Economic Development Zone" honorary title. In 2009, it was recognized as an "Advanced Enterprise for Sanitation Work in Lishui Economic Development Zone", "Advanced Unit for Work Safety in Lishui Economic Development Zone", and a "Major Taxpayer in Lishui Economic Development Zone", among others. From 2008 to 2010, it consecutively received the honorary titles of "Top 50 Manufacturing Enterprises in Lishui City" and "Tax Contribution per Mu Award of Lishui Economic Development Zone" for three years. Between 2010 and 2012, it was repeatedly named "Meritorious Enterprise of Lishui Economic Development Zone" and "Top 100 Taxpaying Industrial Enterprises in Lishui City". From 2013 to 2016, it was awarded the "Top 10 Industrial Enterprises" honorary title by the Lishui Economic Development Zone for four consecutive years. It consecutively received the "Excellent Enterprise" title from the Lishui Economic Development Zone in 2017 and 2018. In 2019, it was recognized among the "Top 20 Manufacturing Enterprises" by the Lishui Economic Development Zone. Between 2020 and 2021, building on its recognition as a "High-Tech Enterprise", "Provincial Technology-based SME", and "Provincial High-Growth Technology-based SME", the Company also obtained certifications for "Intellectual Property Standards Implementation" and "Integration of Informatization and Industrialization Standards Implementation", among other honorary certifications. In 2022, it obtained honorary qualifications including "Zhejiang Provincial High-Tech Enterprise R&D Center", "Zhejiang Provincial Specialized, Refined, Unique, and New (SRUN) SME", and the "Lishui Economic Development Zone Quality Award". In 2023, it was recognized as the "Lishui City 2023 Municipal Enterprise Technology Center for Manufacturing". In 2024, it was named "Advanced Unit for Work Safety" by the Lishui Economic Development Zone.

Jiangsu Huada New Materials Co., Ltd.
Established on September 23, 2009, and located within the Changshu New Materials Industrial Park in Suzhou, Jiangsu, Jiangsu Huada New Materials Co., Ltd. covers an area of 100 mu. It has a registered capital of RMB 100 million and a designed annual production capacity of 200,000 tons. Since its establishment, the Company has actively pursued a brand strategy and has obtained ISO 9001 Quality Management System, ISO 14001 Environmental Management System, and OHSAS 18001 Occupational Health and Safety Management System certifications. Concurrently, it has achieved a series of honors, including: "2011 Advanced Collective for Environmental Protection Work", "2012 Advanced Industrial Enterprise", and "Suzhou City 2012 Advanced Unit for Hazardous Chemicals Safety Management". In 2013, it became a Jiangsu Provincial High-Tech Enterprise and a Suzhou Municipal Engineering Technology Center. From 2014 to 2016, it received honorary titles such as "Excellent Private Enterprise”, "Advanced Unit for Trade Union Work”, and "Worker Pioneer Team”. In 2017, it was awarded the "High-Tech Enterprise" honorary qualification jointly by the Jiangsu Provincial Department of Finance, Jiangsu Provincial Tax Service, and Jiangsu Provincial Department of Science and Technology. In 2018, it received the "Science Progress Award" from the China Petroleum and Chemical Industry Federation (CPCIF) and was rated as a Changshu City Labor Security Grade A Integrity Unit. Between 2019 and 2021, building on receiving awards for excellent technological innovation projects, it was recognized with honorary titles including "Jiangsu Provincial Enterprise Technology Center”, "Jiangsu Provincial Private Technology Enterprise”, "Suzhou Labor Security Grade AA Credit Unit”, and "Suzhou Harmonious Labor Relations Enterprise”. In 2022, it obtained honorary qualifications such as "Jiangsu Provincial Engineering Technology Research Center" and the "2022 Innovation Breakthrough Demonstration Award”. In 2023, it was recognized as a "2023 Jiangsu Provincial Specialized, Refined, Unique, and New (SRUN) SME”.

Huada Chemical (Anhui) Co., Ltd.
Established on March 9, 2016, Huada Chemical (Anhui) Co., Ltd. is located in the Yonggu Light Chemical Industrial Park in Xiao County, Anhui Province. It represents a key investment attraction project for the local government. The Company covers an area of 63.7 mu, has a registered capital of RMB 100 million, and primarily manufactures polyurethane resins for artificial leather, with a designed annual production capacity of 50,000 tons. In 2024, following the successful commissioning of its technical modification project for polyester polyols, the Company aims for its total annual sales volume to exceed 60,000 tons and sales revenue to surpass RMB 700 million, with a target to exceed RMB 1 billion in sales revenue within approximately three years.

On August 20, 2017, the Company completed construction and commenced production after a 10-month construction period, setting a domestic record for the shortest construction cycle for this type of project. In 2018, it received the third prize in the "Comprehensive Assessment of Industrial Enterprises" awarded by the County Committee and County Government. In April 2019, the Company obtained certifications for the Quality (ISO 9001), Environmental (ISO 14001), and Occupational Health and Safety (ISO 45001) management systems. In September 2019, it was recognized as a "National High-Tech Enterprise”, and in November 2019, it received honorary titles including "Anhui Provincial Enterprise Technology Center”. It was designated by the Xiao County Government of Anhui Province as a "Safety and Environmental Benchmark Enterprise" and one of the "Top 10 Industrial Enterprises”. It was awarded the "Safety Culture Construction Demonstration Enterprise" by Suzhou City in 2019, rated as an "Environmentally Sound Enterprise for Non-Key Pollution Sources" by the Suzhou Municipal Ecological Environment Bureau, and designated by the Xiao County Government as a "Safety and Environmental Benchmark Enterprise" and "Advanced Unit for Fire Safety”. It was also recognized as an Advanced Unit for the "Caring for the Next Generation - Loving Assistance for Education" initiative by Xiao County in 2019. In 2022, it was recognized as an Anhui Provincial Innovative SME and an Anhui Provincial "Specialized, Refined, Unique, and New" (SRUN) SME. It was named among the "Top 10 Manufacturing Enterprises" in Xiao County for three consecutive years between 2020 and 2023. In 2023, it was listed on the SRUN Board of the Anhui Province Equity Exchange and Custody Center and is a member unit of the Anhui Provincial High-Tech Enterprise Association. It received the title of "Suzhou City Leading Enterprise in Manufacturing Benefit per Mu" for the year 2023. In January 2023, it was awarded the "Anhui Provincial Specialized, Refined, Unique, and New (SRUN) SME" title. In March 2023, the Company was listed on the SRUN Board of the Anhui Province Equity Exchange and Custody Center. On July 13, 2023, General Manager Zhang Daodong was invited to participate in the Anhui Provincial High-Quality Dialogue themed "Evaluating Heroes by Benefit per Mu, Embarking on Reform Again!" In January 2024, it received the award for "Suzhou City Leading Enterprise in Manufacturing Benefit per Mu" for the year 2023. In February 2024, the General Manager received the "Anhui Provincial Outstanding Private Entrepreneur" award for the year 2023. In November 2024, the Polyester Polyol Workshop was awarded the "Anhui Provincial Digital Workshop" title for the year 2024. On February 6, 2025, General Manager Zhang Daodong received the title of "Advanced Individual in Promoting New Industrial Development in Suzhou City"!

Shandong Huada Chemical New Materials Co., Ltd.
Established on June 7, 2018, with a registered capital of RMB 30 million, Shandong Huada Chemical New Materials Co., Ltd. has mastered the core technology for Thermoplastic Polyurethane Elastomer (TPU) development and is a professional supplier of TPU and related products. Its products have a wide range of applications, including in the chemical, light industry, textile, construction, home appliance, building materials, transportation, aerospace, medical, and automotive sectors.

Huada Chemical (Yantai) Co., Ltd.
It represents the "relocation from city to park" project of Huada Chemical Group Co., Ltd. It is located in the Chemical Park of Yantai Huangbohai New Area, covering an area of over 140 mu. With a registered capital of RMB 110 million and a designed annual polyurethane resin capacity of 200,000 tons, the facility is currently under construction according to plan.
Looking ahead, Huada Chemical Group will remain steadfastly guided by customer needs, adhering to the principle of "Quality First, Customer Supreme”. Upholding the corporate spirit of "Unity, Efficiency, Rigor, and Innovation”, the Group will actively expand the market with high-quality products and efficient services, continuously enhance its corporate competitiveness, and strive to make outstanding contributions to the development of the national chemical industry.