On February 4, 2024, Hongbaoli Group announced that the company accepted research from institutions such as GF Securities on February 2. The researchers exchanged views on the company′s production and operation status. Regarding the progress of the PO technical reform project, Hongbaoli stated that due to the impact of local energy consumption policies, the early-stage approval of the company′s annual 160,000-ton PO technical reform project was delayed. The project has completed the energy evaluation procedures and is currently being accelerated, and it will be put into operation this year.

According to the company′s previous disclosure, the original plan of the project was to expand the annual production capacity of PO from 100,000 tons to 250,000 tons. However, during the process of applying for government approval, due to the impact of the local government′s ‘Dual-Control’ action on total energy consumption and intensity, the project′s energy index was insufficient. The company adjusted the project expansion plan and implemented it in steps. The first step of the technical reform is to achieve a 160,000-ton facility scale, and the original project construction content will be adjusted according to process optimization and other conditions. The project is expected to be completed in the first half of 2024, and enter the stage of applying for trial production permits in June 2024.