Luxi Chemical announced on the evening of September 2 that the company had disclosed on December 31, 2020, its plans to invest in the construction of the Phase I project of the Caprolactam-Nylon 6 Project, aiming to further extend, supplement, and strengthen the industrial chain, increase the proportion of new chemical materials products, and enhance the market share of its products. After intense preparatory project construction, the production process of Phase I has been fully established and has recently gone into safe and smooth operation, producing qualified products. Currently, the company is further optimizing various process indicators to continuously improve operational quality and ensure the project achieves its full production capacity and efficiency.

According to the "Announcement on the Investment and Construction of the Phase I Project of the Caprolactam-Nylon 6 Project" issued by Luxi Chemical on December 31, 2020, the 600,000 tons/year Caprolactam-Nylon 6 Phase I project primarily involves the construction of 300,000 tons of caprolactam, 300,000 tons of nylon 6, as well as supporting production facilities and public utility infrastructure. The Phase I project is projected to require an investment of RMB 3.3 billion, with funds sourced primarily through self-financing, bank loans, and other financing methods to ensure the smooth implementation of the project. Upon completion and commencement of operations, the project is expected to generate an additional annual sales revenue of RMB 4.26 billion and profits and taxes of RMB 760 million.