Longhua New Material announced that its wholly-owned subsidiary Shandong Longhua High Polymer Materials Co., Ltd. plans to increase its capital and introduce 42 investors including Zibo Longfu Investment Development Partnership, with a total capital increase amount of 376.116 million yuan. The company waives its preemptive subscription rights, but after the capital increase, Longhua High Material will still be a controlling subsidiary of the company. This capital increase constitutes a related party transaction and does not constitute a major asset reorganization. This capital increase is based on the actual needs of Longhua High Material and the Nylon 66 project construction, providing strong support for the project's accelerated implementation