Breaking! Rongsheng Petrochemical Plans to Introduce SABIC as Shareholder to Expand into High-end New Materials

On the evening of July 16, Rongsheng Petrochemical released a major announcement. The company and its wholly-owned subsidiary, Rongsheng New Materials (Zhoushan) Co., Ltd., intend to sign a project development agreement with Saudi Basic Industries Corporation (SABIC) to jointly promote the construction of the Jintang New Materials Project.

Both parties plan to introduce foreign strategic equity investment, and SABIC is expected to hold 30% to 50% of the equity in Rongsheng New Materials. Specific transaction prices, structures, and details will be finalized in subsequent formal agreements. At the same time, the two parties will sign supporting agreements such as joint ventures, technology licensing, and technical services to carry out in-depth technical co-construction and industrial cooperation in the field of high-end chemical new materials.

SABIC Possesses Strong Strength with World-Class Technology and Industrial Layout

It is understood that Saudi Basic Industries Corporation is a global leading diversified chemical enterprise headquartered in Riyadh, Saudi Arabia, with world-class production bases deployed in Europe, the Americas, the Middle East, and the Asia-Pacific.

Its products cover categories such as chemicals, high-end plastics, and agri-nutrients, and are widely used in core fields such as automotive, medical, electronics, packaging, and construction.

The company has over 26,000 employees globally, operations in more than 140 countries, and holds over 10,700 patents. Its global scientific innovation and R&D system is well-established, offering significant advantages in technological barriers.

Jintang New Materials Project Lands, Aiming at the Rigid Demand Market for High-End Materials in Asia

The Jintang New Materials Project involved in this cooperation focuses on the capacity upgrade of high-end advanced chemical materials, targeting the high-growth demand of downstream industries in China and Asia.

Relying on SABIC's world-class technology, integrated manufacturing system, and mature operational capabilities, the project will significantly enhance Rongsheng Petrochemical's production capacity and core competitiveness in high-end new materials, continuously release innovation momentum, and bring long-term value growth to the enterprise and investors.

1.7 Billion Yuan Employee Stock Ownership Implemented, Core Backbone Deeply Bound to Company Development

Internally, Rongsheng Petrochemical completed the transfer work for the 2026 Employee Stock Ownership Plan on July 9.

This stock ownership plan raised a total of 1.7 billion yuan, with the participation of 1,404 core backbone members, who acquired over 153 million shares of the company's repurchased shares at 11.11 yuan per share, accounting for 1.53% of the total share capital.

The full subscription with real money by the staff reflects the core team's high recognition of the company's future development. The long-term incentive mechanism further stabilizes the talent team and consolidates the foundation for the company's medium-to-long-term development.

Surging Performance Combined with Track Upgrade, Company Completes Transformation to New Materials Enterprise

In terms of performance, Rongsheng Petrochemical performed impressively in the first half of 2026, with a forecast net profit attributable to shareholders of 5 to 5.2 billion yuan, a surge of over 730% year-on-year, and a net profit after deducting non-recurring gains and losses of 5.2 to 5.4 billion yuan, an increase of nearly 600% year-on-year. Market analysis indicates that this deep cooperation with the global materials leader SABIC means Rongsheng Petrochemical has completely stepped out of the traditional cyclical chemical attributes and officially transformed into a high-end new materials growth enterprise, fully unlocking its medium-to-long-term growth value.