As the new year begins and everything starts fresh, I would like, on behalf of Wanhua’s management team, to send my sincere greetings and best wishes to all Wanhua colleagues who work hard every day, to your families who support you quietly, and to friends from all walks of life who have long cared for and supported Wanhua’s growth.
Looking back on 2025, we faced a tough and complex competitive environment. Wanhua people kept pushing deeper change. A real transformation—from the way we think to the way we act—is taking place. “Value creation” has become a shared belief across the company, bringing new drive from within. After years of building capabilities, our second core business is now gaining momentum. We are accelerating our shift toward a company of “chemicals + new energy,” laying a strong foundation for our goal of becoming a world-leading enterprise.
In 2025, we used change to break through and unlock the power of our organization. With “Year of Change” as our management theme, we moved from an “investment mindset” to an “business mindset.” We built a more accurate incentive system that links employee income more closely with value creation, and we kept improving initiative and creativity across the workforce. We also advanced digital and intelligent tools in operations and management. AI scenarios such as time-series foundation models, smart site inspections, and preventive equipment maintenance have been widely applied. The deep integration of big data and AI is steadily moving Wanhua toward a smarter enterprise.
In 2025, we went deeper into technology and built core strengths for the future. We continued to improve our R&D organization, optimize talent allocation, and focus resources on our core businesses. We tightly connected technology development with business value, and brought a business mindset into R&D, so innovation energy can keep growing. Led by national key laboratories and supported by “AI for Science,” we focused on critical technology breakthroughs in areas such as battery and high-performance materials. A number of high-end new materials developed in-house have reached the market. Breakthroughs have also continued to emerge from advanced platforms such as synthetic biology and electrochemistry.
In 2025, we strengthened our first core business and reinforced our advantage. Our next-generation polyurethane manufacturing technology is being rolled out step by step, and our competitiveness keeps improving, further strengthening our leading position. Our petrochemical business continued to upgrade: Ethylene Phase II started up smoothly; the feedstock diversification upgrade for Ethylene Phase I is accelerating; and introducing foreign investment into the Phase I petrochemical business has further strengthened the competitiveness of our C3 value chain. Our specialty chemicals business is iterating faster: a series of new products developed in-house have started production, and our product portfolio is becoming more high-end, greener, and more differentiated.
In 2025, we advanced strongly in emerging tracks, and our second core business gained real momentum. Through sustained, high-intensity R&D investment, our battery materials business achieved major breakthroughs in both cathode and anode technologies, moving steadily toward the goal of being a leading innovator in the industry. By changing our management mindset, we kept challenging goals that once seemed impossible. Supported by our strong manufacturing capability and talent base—and backed by resources such as wind, solar, and mining—our strategic blueprint for the second core business is being realized faster.
In 2025, we stayed close to customers, and the Wanhua brand shined worldwide. Our marketing team stayed true to “great products and outstanding service,” and followed a strategy of going deeper into channels, staying close to front-line sales, and creating win-win partnerships. We continued to improve our global supply chain and service system, and kept creating value beyond customer expectations. At the same time, Wanhua received the China Quality Award, becoming the only company in the chemical industry to receive this honor. This reflects our belief that quality is the foundation of a company’s long-term success.
Over the past year, we left strong marks through hard work, created real results through action, gained confidence through breakthroughs, and built deeper strength through challenges. Every Wanhua employee’s dedication has become powerful energy that drives the company forward—you are Wanhua’s strongest backbone and brightest light.
In 2026, we will make the key moves that shape our next chapter. Global economic growth will still face pressure, and industry change will continue to accelerate. Only by actively evolving and continuously surpassing ourselves can we stay competitive. Therefore, we have set our 2026 management theme as “Year of Quality and Efficiency Improvement.”
In the year ahead, we will systematically elevate the quality of our operations and build integrated competitive advantages. We will use closed-loop management to translate strategy into precise execution, deepen our international footprint to strengthen global competitiveness, reinforce group-wide business mindset, and promote closer coordination across business units—aligning production and sales and enabling more efficient resource sharing. We will also accelerate AI-enabled upgrades in both manufacturing and management, continue to refine targeted incentives and organizational transformation, and comprehensively improve operational efficiency and organizational vitality.
At the same time, we will keep innovation at the center of our future growth. We will stay focused on breakthroughs in key and core technologies. While reinforcing our strengths in polyurethane and petrochemicals, we will place greater emphasis on R&D advances in battery materials, high-end new materials, and bio-manufacturing—building a portfolio of proprietary core technologies that can lead the industry.
We will also work to make the second core business truly take off. Guided by the spirit of “seize the moment, innovate and break through, manage with excellence, and build strength through persistence,” and taking the Haiyang and Laizhou green-power industrial parks as a new starting point, we will develop an integrated “wind–solar–storage–grid–industry” model and build a modern battery materials benchmark with clear advantages in technology, scale, and returns.
Finally, we will hold the line on safety and build the foundation for long-term success. We will strengthen a safety management system centered on risk prevention and control, enhance safety awareness and capabilities across the workforce, and accelerate progress toward stronger self-management and team-based management. With higher standards, we will safeguard employee wellbeing, ensure stable operations, fulfill our social responsibilities, and lay a solid foundation for sustainable development.
Rivers flow without pause; so does our pursuit of progress—and the future is full of promise. Standing at a new starting point, let us stay true to our mission: “Advancing chemistry, transforming lives!” With the “Year of Quality and Efficiency Improvement” as our new beginning, let us remain strategically focused, confident in our direction, and ready to meet challenges with higher standards, stronger execution, and greater determination. Together, we will write a new chapter of high-quality, sustainable development for Wanhua.
Finally, I wish you all good health, success in your work, happiness for your families, and a wonderful new year.
Chairman: Liao Zengtai
December 31, 2025
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