Shanghai Petrochemical Company Limited (00338) has announced the completion of a capital increase for its carbon fiber subsidiary. On February 28, 2026, the company entered into investment agreements with China Petroleum & Chemical Corporation, the carbon fiber company, and other strategic investors, including Wushen Banner State-owned Investment Group, Dongfang Electric Corporation's wind power unit, and CCB Financial Asset Investment. The parties agreed to subscribe for the newly issued registered capital of the carbon fiber company under the terms stipulated in the agreements.

China Petroleum & Chemical Corporation subscribed to 300 million yuan of the new capital, representing a 25% equity stake following the capital injection. The remaining 300 million yuan in increased registered capital was subscribed by the other strategic investors.

The carbon fiber company was established on February 19, 2025, and as of the announcement date, its registered capital stood at 600 million yuan. It is primarily engaged in the production and sales of carbon fiber, targeting markets such as pultruded板材 for wind turbine blades, transportation materials, and new energy storage materials.

Prior to this capital increase, the carbon fiber subsidiary was a wholly-owned unit of Shanghai Petrochemical with a registered capital of 600 million yuan. Following the transaction, its registered capital has risen to 1.2 billion yuan.