On the evening of January 4, 2026, Zhenhua Co., Ltd. (603067), a leading chromium chemical company in the A-share market, announced its plan to issue convertible corporate bonds to raise up to 8.78 billion yuan. The funds will primarily be directed toward two co-production projects, supplement working capital, and repay bank loans. The company stated that upon completion, these projects will further expand production capacity, enhance technological barriers, and strengthen core market competitiveness.

Both core projects will be implemented by Zhenhua’s wholly-owned subsidiary, Chongqing Minfeng Chemical Co., Ltd., with a construction period of two years each. Among them, the 5,000-ton/year vitamin K3 co-production with 74,000-ton/year chromium green project has a total investment of 500 million yuan, with 415 million yuan to be funded by the bond issuance. As the world’s largest vitamin K3 producer, Zhenhua’s expansion will solidify its leading position in the feed additives sector—vitamin K3 is widely used in livestock, poultry, and aquaculture. The project adopts a "co-production" process, enabling high-value comprehensive utilization of chromium elements during vitamin production while simultaneously increasing the output of high-value-added chromium green products.

Another key project is the 500,000-ton/year sulfuric acid co-production with 50,000-ton/year chromium powder project, with a total investment of 250 million yuan, of which 200 million yuan will be funded by the bond issuance. Upon completion, Zhenhua will establish a vertical industrial chain of "sulfuric acid—chromium salts—chromium powder," achieving efficient synergy between upstream and downstream products. Large-scale production will not only reduce unit costs but also expand the profit margins for chromium powder and sulfuric acid, strengthening supply capabilities to downstream core application areas.

Public information shows that Zhenhua Co., Ltd. is the only listed company in the A-share market focused on chromium chemicals, specializing in the research, production, and sales of chromium chemicals, vitamin K3 co-production products, and by-products such as ultra-fine aluminum hydroxide. Its core applications of chromium chemicals are concentrated in five industries: engineering electroplating, metal chromium smelting, refractory materials, pigments, and leather products.

Leveraging structural growth in industry demand, Zhenhua has achieved significant results in capacity release. In the first half of 2025, the company’s chromium-related business sales reached approximately 147,000 tons (calculated as sodium dichromate), a year-on-year increase of 12%. In the second quarter alone, sales reached about 78,000 tons, up 16% year-on-year and 13% quarter-on-quarter, setting a new historical sales record.

In recent years, Zhenhua has continued to expand into the downstream fine chemical sector of chromium chemicals, focusing on the localization, research, and application of high-purity metal chromium, high-end chromium oxide green, and high-purity chromium tanning agents, gradually building a comprehensive industrial chain layout. In expanding high-end product applications, the company is exploring the market potential of metal chromium in new material fields such as power equipment and has established stable cooperation with supply chain companies of U.S.-based BE Company.

In addition to deepening its core business, Zhenhua is actively exploring new sectors, expanding into animal nutrition and new high-efficiency flame-retardant materials. In the first half of 2025, the company seized opportunities in the development of long-duration energy storage for new energy, with the first-phase iron-chromium flow battery energy storage station (250 kW power, 1 MWh capacity) at its Hubei plant operating stably, laying the foundation for diversified business development.

In terms of performance, Zhenhua has maintained steady growth. In the first three quarters of 2025, the company achieved revenue of 3.217 billion yuan, a year-on-year increase of 7.47%, and a net profit of 410 million yuan, up 12.56% year-on-year.