Hui Tong Increases Investment, Zhaoqing Zhongyin Phase II Project to Commence Production in 2026

Driven by the dual-carbon goals, the green recycled materials sector is experiencing clear development opportunities. In 2025, Hui Tong officially established its wholly-owned subsidiary, Huitong Chuangyuan Environmental Protection Co., Ltd. (referred to as Huitong Environmental), forming a professional team to comprehensively coordinate the integration and development of the green recycling industry chain. This subsidiary serves as the core platform for the group to deepen its presence in the recycled materials sector and connect upstream and downstream resources.

To solidify the foundation of the industry chain, Hu Tong has undertaken several rounds of forward-looking initiatives: in 2023, it invested in Guangdong Zhongyin Company to enter the PCR (Post-Consumer Recycled) field and expand into the South China market. In 2024, it partnered with East China’s leading home appliance recycling enterprise—Anhui Fuyang Dafengye Renewable Resources Company—to jointly establish Huifeng Environmental Technology (Anhui) Co., Ltd., initially forming regional synergies in East China and South China. Building on this, in 2025, Huitong Environmental, along with its partners, launched the Guangdong Zhongyin Phase II project. With an investment of 180 million yuan, the project aims to establish a new base to deepen the PCR industry chain ecosystem and advance the green strategy into a new phase of scaled implementation.

— 1 — Project Progress: Production to Commence in 2026
As a key component of Hu Tong’s supply chain strategy, the Zhaoqing Zhongyin Phase II project has been designed with a focus on "efficiency, precision, and scalability" from its inception. Currently, the underground structure construction has been completed, achieving the "ground zero" milestone. The overall progress is proceeding as planned, with trial operations expected to begin in June 2026 and full production scheduled for September of the same year. This milestone not only marks the substantial progress of Huitong Environmental’s collaboration with multiple partners but also provides the group with dual support of "front-end processing + stable supply" for future supply chain expansion, solidifying the production capacity foundation of recycled materials.

— 2 — Technology and Capacity: Building a Closed-Loop Supply Chain
The project strengthens quality through technological upgrades, ensures supply stability through capacity planning, and strives to build an industrial closed loop to form a complete ecosystem.

1. Technological Upgrades to Strengthen Quality Foundation
   Leveraging Huitong Environmental’s technical expertise in the recycled materials sector, the project plans to equip large-scale crushing and initial washing lines, as well as three sets of grinding and precision washing lines to enhance the cleanliness of waste plastics from the source. Additionally, it will include four large-scale electrostatic sorting machines, six color sorting machines, and six spectral material sorting machines to achieve precise separation of waste plastics through "multi-stage sorting + high-precision identification."

2. Defined Capacity to Ensure Stable Raw Material Supply
   Upon completion, the project will achieve a core capacity of "monthly processing of 5,000 tons of mixed materials (PP/PE)" and "monthly processing of 3,000 tons of food-grade PP materials," providing downstream manufacturing with high-quality and stable recycled raw materials.

3. Closed-Loop Construction to Enhance Industrial Ecology
   The project will help Huitong Environmental establish a closed-loop supply chain system of "resource recycling—precision processing—raw material supply," completing a critical link in Hu Tong’s green materials ecosystem.

— 3 — Industrial Synergy: Meeting High-End Demand
The project builds core advantages through multi-party collaboration and aligns with high-end market demands through precise end-market positioning.

1. Multi-Party Complementary Advantages to Build Competitive Barriers
   The project combines the strengths of various stakeholders: regional resource integration capabilities of partners, Huitong Environmental’s expertise in recycling technologies, and Hu Tong’s ability to integrate the industry chain and leverage relevant channel resources. Together, they create a solid barrier of "technology + capacity + market."

2. Precise End-Market Positioning to Serve High-End Sectors
   To meet the stringent global demands for environmentally friendly and high-quality materials, Hu Tong is developing service capabilities tailored to the high-end home appliance and automotive industries, catering to international customers’ specific standards for high-end PCR products. In the automotive sector, the company will focus on the R&D and mass production of lightweight and high-performance component materials, ensuring product reliability through dedicated modification technology platforms.

— 4 — Outlook
In just 18 months, Huitong Environmental transformed the ambitious "dual-carbon" blueprint into a modern green factory in Zhaoqing. By September 2026, this factory is expected to commence full operations, turning the abstract concept of a circular economy into tangible, traceable, value-added, and carbon-reducing "green particles." Upon completion, the Zhaoqing base will annually transform 96,000 tons of waste plastics into high-quality PCR raw materials, directly helping downstream customers reduce raw material carbon emissions by approximately 30%. This not only paves the way for Hu Tong’s robust "second growth curve" but also demonstrates the determination and action of industry leaders in advancing green development.

As pioneers like Hu Tong deepen their presence across the entire industry chain and the scaled application of PCR technology accelerates, China’s plastic chemical recycling and regeneration sector is entering a critical development phase. Against this backdrop, the "ChemRePlas2026 4th China International Plastic Chemical Recycling and Regeneration Conference," aimed at gathering global expertise and promoting industrial collaboration and innovation, will be held grandly in 2026.