SHANGHAI, China, Jan. 08, 2026 (GLOBE NEWSWIRE) -- Texxon Holding Limited (Nasdaq: NPT) (the “Company” or “Texxon”), a leading provider of supply chain management services in the plastics and chemical industries in East China, today announced the successful completion of key safety and regulatory milestones for its 600,000-ton annual capacity polystyrene (“PS”) manufacturing project (the “Henan Polystyrene Factory”). With these milestones achieved, the Henan Polystyrene Factory has now entered its final stage of operational readiness, and is expected to commence production in early 2026.
Completion of Key Regulatory and Safety Procedures
The Company has substantially completed a comprehensive, months-long pre-commissioning inspection and rectification process, commonly referred to in China’s plastics and chemical industries as the “Three Checks, Four Fixes” program. This process included a systematic review and remediation of design omissions, engineering quality issues, potential safety hazards, incomplete construction work, and operational risks. Each identified issue was addressed through clearly defined corrective measures, assigned responsibilities, implementation timelines, and verification procedures.
This mandatory pre-commissioning program for large-scale chemical manufacturing projects serves as a comprehensive and detailed “health check” prior to trial runs, final user acceptance testing, and formal commissioning. It encompasses end-to-end verification of process design, equipment installation, safety systems, and construction quality to ensure full operational integrity.
In addition, on December 10, 2025, Texxon successfully filed its Major Hazard Installation Safety Assessment Report with the relevant government authorities. The acceptance of this filing confirms that the Henan Polystyrene Factory has satisfied national safety regulatory requirements through comprehensive risk identification, assessment, and the implementation of corresponding control measures.
In parallel with the completion of construction-related safety approvals, Henan Net Plastic Supply Chain Management Co., Ltd., a subsidiary of Texxon, has obtained the required Hazardous Chemicals Operating License from the relevant authorities. This mandatory sales-side license allows the Company to legally conduct the commercial sale and distribution of polystyrene and other regulated chemical products, thereby establishing a comprehensive and compliant regulatory framework encompassing both manufacturing operations and downstream commercial activities.
Management believes that, with these core safety procedures and regulatory approvals completed, the project has effectively transitioned from the construction phase to the commissioning and ramp-up preparation phase. The Company is now positioned to progress toward initial production, revenue generation, and market delivery, with no material regulatory barriers to the planned production.
Enhanced Industrial Synergy and Integrated Operating Model
Upon commissioning, the Henan Polystyrene Factory is expected to enhance Texxon’s industrial synergy by integrating upstream manufacturing capabilities with its existing supply chain and digital distribution platform.
The Company believes that this “self-owned manufacturing + digital supply chain platform” operating model is expected to improve operational control, responsiveness to customer demand, and data-driven supply optimization.
Project Commissioning and Operating Model Transition
Mr. Hui Xu, Chief Executive Officer and Chairman of Texxon, commented: “The completion of these milestones marks an important transition for the Company. The Henan Polystyrene Factory is expected to change our operating structure -- from a primarily trading-based model to an integrated model combining supply chain services with manufacturing capabilities.
“We believe that following commissioning and ramp-up, the Henan Polystyrene Factory will introduce manufacturing margins into our revenue mix, improve overall gross margin structure and earnings quality, and enhance resilience to market and commodity price volatility. The Henan Polystyrene Factory is intended to support the Company’s long-term earnings and strategic development, rather than a short-term capacity expansion.”
About Texxon Holding Limited
Texxon Holding Limited is a leading provider of supply chain management services in the plastics and chemical industries in East China. Through its technology-enabled platform, the Company provides a full spectrum of services to Chinese SME customers, including procurement, shipping and logistics, payments and fulfillment services. It aspires to build the largest one-stop plastic and chemical raw material supply chain management platform in China, to streamline the complex and labor-intensive raw material procurement process and enhance convenience, cost-effectiveness, and efficiency for customers. Texxon has built a highly scalable distributed software architecture for continuous improvement, and an effective User Experience Design (UED) process to improve the customer experience. In addition, with over a decade of experience, the Company has amassed substantial transaction data, including supplier and customer information, price trends, category-specific price indexes and market demand volume, to analyze price trends and market demands and make informed decisions. For more information, please visit the Company’s website: ir.npt-cn.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements, including, but not limited to, the statements regarding the expected timeline, commissioning, and production of the Henan Polystyrene Factory. These forward-looking statements involve known and unknown risks and uncertainties related to market condition and other factors discussed in the “Risk Factors” section of the Company Annual Report on Form 20-F for the fiscal year ended June 30, 2025 filed with the U.S. Securities And Exchange Commission (the “SEC”) and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this announcement. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's latest Annual Report on Form 20-F and other filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
Texxon Holding Limited
Investor Relations Department
Email: ir@totrade.cn
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
