The company is a leading global TMA company. The company's main business involves the fine chemical industry and the new environmentally friendly materials industry. Currently, its main products include terephthalic anhydride (TMA), trioctyl terephthalate (TOTM), and dioctyl terephthalate (DOTP), as well as new high-end products such as vinyl toluene (VT) and quaterylene. Currently, the company occupies a leading market position in China and even in the global TMA market. It is one of the few fine chemical companies that can use a continuous method to produce TMA; with outstanding quality advantages and industrial chain advantages, the company has rapidly grown into a leading brand position in the TMA market in the industry segment. The company also has a certain popularity and market position in the entire domestic field of fine chemicals and environmentally friendly new materials. In terms of industrial chain layout, the company has laid out downstream plasticizer production capacity and also has the ability to produce vinyltoluene, improving product diversity. In 2022, the company achieved revenue of 1.924 billion yuan, an increase of 9.38% over the previous year, and realized net profit of 56 million yuan, a year-on-year decrease of 46.56%.

The main use of TMA is to produce TOTM, an environmentally friendly plasticizer. The three major downstream demands of plasticizers, powder coatings, advanced insulating materials, and high-temperature curing agents are the main driving forces driving the rapid development of the TMA market. Currently, the main use of TMA is to react with isooctyl alcohol to produce trioctyl terephthalate (TOTM), an environmentally friendly plasticizer. TMA uses also include the production of powder coatings, advanced insulating materials, high temperature curing agents, advanced lubricants, etc. Polyimide, polyamide-imide paint, and polyesterimide paint made from TMA are mainly used as insulation materials for F- and H-grade high-end motors, and for higher-grade explosion-proof electrodes, overweight motors, air conditioners, and refrigerator motors. Terephthalate (TMT) made from TMA is an ideal base oil for synthesizing high temperature chain oils, high viscosity compressor oils, and blending advanced lubricants. According to Baichuan Yingfu, in 2022, plasticizers, powder coatings, insulating materials and curing agents accounted for 52%, 40%, 7%, and 1% of China's TMA consumption, respectively.

The global TMA market continues to grow. With the development of the fine chemical industry and the continuous growth of downstream market demand, the global TMA market has shown a steady growth trend in recent years with high quality and high requirements for services. With the development of the international TMA industry and the trend of related downstream industries shifting to China, domestic TMA consumer demand is steadily increasing. According to research by Bayesian Consulting, the global TMA market reached $3.377 billion in 2022. It is predicted that by 2028, the global TMA market will reach 4.47 billion yuan. During the forecast year, the global TMA market is estimated to have a compound annual growth rate of 5%.

TMA presents an oligopoly pattern. According to Innix's official website, Zhengdan shares, Innix, Baichuan shares, Polynt Italy, Teda New Materials, and Polynt Changzhou account for 30%, 25%, 20%, 11%, 7%, and 7% of the global TMA market, respectively. The global TMA market presents a competitive pattern of oligopolies.

Low inventories and high export demand supported the rise in TMA prices. According to Baichuan Yingfu, as of April 12, 2024, China's TMA inventory was 750 tons, a year-on-year decrease of 42% and a year-on-month decrease of 6%. In 2023, China's TMA export volume was 151,400 tons, a year-on-year increase of 5.3%. As of April 12, 2024, the TMA price in East China was 25,000 yuan/ton, up 102% year on year and 35% month on month. Domestic export orders have increased, there is a shortage of liquid spot in the market, and the TMA market is rising steadily.

Risk warning: Increased market competition; fluctuating raw material prices; fluctuating market prices.