By February 11, 2026, the caprolactam market has seen overall conditions and order improve, supported by collaborative efforts across the industry and a gradual recovery in market demand. Product prices have steadily increased from RMB 8,050 per ton in early November 2025 to RMB 9,900 per ton. CHINA RISUN GP is leading this industry transformation through relentless R&D innovation and capacity expansion, accelerating the development of another world-leading chemical product line.

Capacity expansion and technological innovation have established the company's leading industry position. Through a series of capacity-enhancing supporting projects and technical upgrades, the group has not only expanded its caprolactam production capacity but also achieved breakthroughs in cost control and production efficiency. Currently, the group's total caprolactam capacity has reached 810,000 tons per year, with a stable market share of approximately 9.6%. The Cangzhou Park, serving as the flagship production base, has a combined capacity of 510,000 tons per year from its Phase I and Phase II projects. Since the successful commissioning of the Phase I 100,000 tpa caprolactam project in October 2015, two major capacity expansions between 2019 and 2022 have established a comprehensive industrial chain centered around caprolactam. The Phase I expansion achieved large-scale production of 150,000 tpa of caprolactam, alongside key supporting facilities including a 135,000 tpa cyclohexanone unit and 3x220 t/h boilers. The Phase II expansion represents the largest single investment and most technologically advanced chemical project in the company's history. It added 360,000 tpa of caprolactam capacity, supported by a 330,000 tpa cyclohexanone unit, 343,000 tpa (35%) hydrogen peroxide unit, an 80,000 Nm³/h hydrogen production facility, a 300,000 tpa synthetic ammonia unit, and a 1x410 t/h circulating fluidized bed coal-water slurry boiler that supplies heat to neighboring enterprises, creating a highly efficient and synergistic industrial ecosystem.

Notably, the cyclohexanone hydration technology adopted in the Cangzhou Phase II project demonstrates significant comprehensive advantages over traditional oxidation processes, including reduced raw material consumption, less waste generation, significantly improved safety and stability, and higher product purity and quality. It achieves nearly 100% conversion rates for cyclohexane and carbon, substantially lowers hydrogen consumption, reduces gas and liquid waste emissions, and converts some waste streams into clean fuel through technological innovation, delivering both environmental and economic benefits.

Beyond the continuous development of the Cangzhou Park, the Dongming Park, as another key base for the caprolactam business, has also completed capacity expansion and supporting upgrades in recent years, forming a diversified production capability including 300,000 tpa of caprolactam, 80,000 tpa of Nylon 6 chips, and 350,000 tpa of cyclohexanone. This move not only increased production capacity by 50% but also enhanced operational and systemic synergy between the two parks, solidifying the foundation for the group's development in the nylon new materials sector.

Leveraging its self-developed caprolactam-to-hexamethylenediamine production process—a breakthrough achieved after eight years of R&D to overcome关键技术瓶颈—the group has largely completed construction of the Phase I high-end polyamide new materials project in the Yuncheng Park. This achievement breaks foreign technological barriers, establishes a complete set of proprietary intellectual property rights, and paves a new path for China's nylon industry. As a key raw material for high-performance nylon, the successful production of HMD, which bypasses the traditional adiponitrile step through major technological innovation, will support the group's downstream extension into high-end segments such as PA6, PA66, and high-temperature nylons. This strategy aims to create an industrial closed loop, enhance product added value, broaden the new materials产业链, strengthen the profit "moat," and further consolidate its industry leadership.

Looking ahead, the group will continue to leverage the synergistic effects of its Cangzhou and Dongming parks, persisting with a dual approach of independent R&D and technology introduction. It will focus on overcoming disruptive core technologies to drive continuous innovation and application expansion in areas like elastomeric nylons and high-temperature nylons. Based on the high-end polyamide new materials project, the group plans to accelerate the R&D of Nylon 66 and high-end specialty nylon materials, aiming to build a million-ton-scale nylon new materials product portfolio and establish itself as an internationally competitive leader in the caprolactam new materials industry. Concurrently, the group is actively seeking in-depth cooperation with fiber spinning and further downstream enterprises. Through synergistic partnerships and complementary strengths, it aims to fully integrate the PA6 and PA66 nylon sectors, high-standard construction of a complete caprolactam-nylon industrial chain, and establish a national-level nylon new materials industrial base.