In China, multiple listed companies in the modified plastic sector achieved notable growth in both revenue and net profit in the first quarter of 2025.

Among them, Kingfa is leading in the sector with a revenue increase of 49.06%, while Silver Age’s net profit surged by 911.91%, the highest growth rate in the sector.

Drivers: Declining raw material prices and emerging demand

After reviewing various companies’ financial reports, Adsale Plastics Network found that the recent performance growth is primarily driven by four key factors:

1. Raw material prices drop: Reducing production costs and enhancing profit margins

2. Rapid rise of new energy, humanoid robot, and low-altitude economy: Driving a surge in demand for lightweight, high-performance engineering plastics

3. Implementation of policy to promote trade-ins of consumer goods: Stimulating a rebound in the home appliance and consumer electronics markets, increasing the usage of modified materials.

4. Accelerated overseas expansion: Enhancing competitiveness in overseas markets, as well as adaptability and delivery efficiency

In addition, the Chinese companies also achieved breakthroughs in niche areas due to technological innovation, market positioning, and differentiated product structure.

Kingfa Sci.&Tech.: Increase local and overseas capacity

• Revenue: RMB 15.666 billion, up 49.06% YOY

• Net Profit: RMB 247 million, up 138.2% YOY

Currently, Kingfa’s annual production capacity for modified plastics reaches 4 million tons, and its annual production capacity for specialty engineering plastics reaches 34,000 tons, making it one of the largest modified plastics manufacturer in the world.

In Q1 of 2025, Kingfa saw a 91% YOY increase in sales of specialty engineering plastics, with high-temperature nylon, LCP, and PPSU being the main growth categories. This growth is driven by the rapid development of emerging industries and the acceleration of domestic substitution.

The company has proactively increased its capacity in core applications such as consumer electronics, automotive, and new energy, as well as achieved breakthroughs in niche sectors like humanoid robotics.

Meanwhile, Kingfa continues its overseas expansion. The company has established bases in India, Malaysia, Vietnam, Germany, and Spain, while projects in Mexico and Poland are underway.

Kingfa showcased humanoid robot material solutions at CHINAPLAS 2025. (Source: Kingfa)

Shanghai PRET Composites: Focus on new energy battery technologies

• Revenue: RMB 1.934 billion, down 0.68% YOY

• Net Profit: RMB 107 million, up 36.78% YOY

Despite a slight decline in revenue, PRET achieved profit growth through a rebound in new energy battery business. The company has established 11 modified plastics production bases globally, with an expected annual capacity of 710,000 tons. A new plant in Tianjin, with a capacity of 150,000 tons, is scheduled to start production by the end of 2025.

PRET has recently established a factory in Thailand to produce high-performance modified PP, ABS and PA, as well as PC alloys, fiber-reinforced lightweight materials, food-grade antibacterial materials, and recycled plastics, meeting the demands of the Southeast Asian automotive, packaging, and household goods markets.

Notably, the company has also extended its business into the new energy battery sector, covering technologies in materials, cells, BMS, and system integration. As the production capacity continues to increase, it will further enhance the company's market share in energy storage.

PRET’s factory in Thailand officially commenced production in April, 2025. (Source: PRET) 

Orinko Advanced Plastics: Optimization of product structure

• Revenue: RMB 1.468 billion, up 15.07% YOY

• Net Profit: RMB 41.16 million, up 24.89% year-on-year

With the focuses on domestic substitution, emerging applications, and systematic customization, Orinko has continued to innovate in specialty materials such as long-chain nylon, high-temperature nylon, PEEK, PS, and carbon fiber-reinforced polyamide.

Orinko’s long-chain nylon powder has successfully used as import alternative for household appliances like dishwashers, addressing dependency on import products. Orinko has introduced piping solutions for AI server liquid cooling systems, and the company is promoting applications in emerging sectors such as robotics and low-altitude aircraft.

The company emphasizes localized manufacturing in overseas markets. Its factory in Thailand has annual production capacity of 18,000 tons.

Orinko showcased humanoid robot material solutions at CHINAPLAS 2025. (Image source: Orinko)

Dawn Group: Elastomer materials to boost robot development

• Revenue: RMB 1.285 billion, up 6.5% YOY

• Net Profit: RMB 36.978 million yuan, up 28.45% YOY

Dawn focuses on the R&D and manufacturing of thermoplastic elastomers, modified plastics, and color masterbatches. The company has capitalized on the policy of promote trade-ins of consumer goods, achieving record high sales of elastomers and modified plastics. Its nylon and alloy materials can be used in robotic arms, while elastomer materials address adhesion issues in bionic robots.

To enhance the cost competitiveness and quality of its elastomer materials, Dawn is currently developing a phased project with an annual production capacity of 100,000 tons of TPU and a project for 60,000 tons of TPU raw material polyols.

Moreover, Dawn has recently acquired two companies to enter the titanium dioxide and cable insulation material sectors.

Polyrocks Chemical: Turning loss into profits

• Revenue: RMB 1.108 billion, down 7.36% YOY

• Net Profit: RMB 6.51 million (recorded a loss of RMB 12.16 million in the previous year)

The businesses of Polyrocks Chemical include three main sectors: modified plastics, petrochemical materials, and fine chemicals. It is one of the leaders in the halogen-free flame-retardant polypropylene market.

Polyrocks Chemical operates four overseas production bases in Vietnam, Nigeria, Cambodia, and Angola.

The reasons for recently improved performance are:

- Consolidation of unprofitable businesses

- Transferring inefficient domestic capacity to overseas

- Significant market developments resulting from new projects

- Recovery in gross margins for overseas subsidiaries due to exchange rate impacts

Polyrocks Chemical’s production base in Angola. (Source: Polyrocks Chemical)

Nanjing Julong: Mexican production base commences production

• Revenue: RMB 594 million, up 32.48% YOY

• Net Profit: RMB 22.93 million, up 26.35% YOY

Nanjing Julong excels in lightweight materials for the automotive industry, serving carmakers such as BYD and NIO. Its flame-retardant nylon is used in new energy vehicle battery packs and its absorbing materials supports millimeter-wave radar. The company’s carbon fiber composite parts are now mass produced for innovative aircraft such as multirotor drones and tilt-rotor aircrafts.

Notably, its subsidiary continues to innovate in UAV component production, assembly technology, and quality control, with the carbon fiber composite smart manufacturing line achieving full automation from prepreg to part formation.

The company’s production base in Mexico has also commenced operations, enabling localized production that avoids trade barriers while serving the North American new energy vehicle market.

Nanjing Julong showcased material solutions for low-altitude economy applications at CHINAPLAS 2025. (Source: Nanjing Julong)

Silver Age Sci. & Tech.: Significant increase in smart lighting orders

• Revenue: RMB 515 million, up 30.18% YOY

• Net Profit: RMB 18.99 million, up 911.92% YOY

Silver Age focuses on high-performance modified plastics, smart lighting, 3D printing materials, and electronic chemicals.

In addition to solidifying its presence in traditional sectors such as home appliances and wire and cable, Silver Age is expanding into niche areas of polymer materials, including smart lighting, low-altitude aircraft, household service robot, and specialized service robots. The substantial improvement in performance was due to the increase in smart lighting orders.

Silver Age is expanding production both domestically and internationally. The commencement of new operations in China and Vietnam will further enhance the company’s delivery efficiency and customer responsiveness.

Silver Age Sci. & Tech. (Source: Silver Age)

WOTE: Cultivate in multiple new racetracks

• Revenue: RMB 395 million, up 8.48% YOY

• Net Profit: RMB 4.5271 million, up 24.76% YOY

WOTE specializes in LCP, PPA, PEEK, and fiber-reinforced composites, with applications in industries such as 5G/6G communication, robotic, AI server, drone, automotive, and semiconductor.

The company’s automotive and new energy materials are used for electrical and thermal management. It has begun small batch deliveries of millimeter-wave radar components and aims to extend into visual radar technologies. Its high-frequency communications and high-speed computing materials include thermal management solutions for AI servers as well as PTFE films.

The first phase of WOTE’s Chongqing production base, with an annual production capacity of 5,000 tons of LCP and 500 tons of PEEK, has entered into trial and is expected to contribute stable profits in the future.

WOTE showcased its solutions for humanoid robot at CHINAPLAS 2025. (Source: WOTE)

Super-Dragon: Develop PEEK materials for high-end electronic applications

• Revenue: RMB 360 million, up 5.76% YOY

• Net Profit: RMB 15.58 million, up 13.75% YOY

Headquartered in Guangzhou, Super-Dragon Engineering Plastics operates two major production bases in East and South China, focusing on the R&D of high-end modified composite materials. Its primary clients include leading brands such as Midea, Hisense, and GAC.

In addition to producing high-performance plastics like modified PP, PA, PBT, and PC, Super-Dragon has developed ceramic PEEK materials. These materials feature high-temperature resistance (over 200°C), exceptional dimensional stability, ultra-low impurities, and low moisture absorption, specifically meeting the stringent requirements of the electronics industry.

Takeaways

In the first quarter of 2025, the Chinese modified plastic sector experienced a collective upswing in performance. This growth is not only a return on the technological and strategic investments made over the past few years but also signifies a shift in China's modified plastic sector.

The focus of the sector has been shifting from a model primarily driven by “capacity expansion” to one characterized by “technological breakthroughs, high-end applications, and strategic expansion.”

Looking ahead, companies who can seize opportunities in high-performance material innovations, global capacity planning, and collaboration in application scenarios will dominate the next phase of sector restructuring.