How are the major Chinese modified plastics companies doing: report

Major Chinese companies of modified plastics have published their financial reports for the first half of 2023, including Kingfa Science & Technology, Shandong Dawn Polymer, Shanghai Pret Composites, Nanjing JuLong Science & Technology and Shenzhen WOTE Advanced Materials.

Digging into the data, the growth driver for revenue and profit of these companies is the increasing adoption of modified plastics on new energy vehicles.

Modified plastics have increasingly applied on new energy vehicles. (Source: Kingfa)

Kingfa Science & Technology: Revenues exceed RMB 20 billion

Kingfa recorded revenues of RMB 20.349 billion in the first-half year, up 4.53% year-on-year (YOY). However, the sales drop in medical sector resulted in a YOY decline of 41.53% in net profit (RMB 469 million).

Notably, both sales and gross profit of modified plastics increase, with a 5.19% rise in sales and a 15.40% increase in gross profit, compared to last year.

Kingfa’s revenues exceeded RMB 20 billion in the first-half of 2023.

Automotive modified plastics account for the highest proportion of Kingfa’s modified plastics portfolio and continue to grow strongly. Sales in this sector reached 386,000 tons, representing an increase of 24.64% YOY.

Besides, sales of new energy materials continue to rise rapidly. The sales in first-half year reached 28,600 tons, a 52.13% increase compared to last year. Meanwhile, sales of eco-friendly high-performance recycled plastics was 101,600 tons, a 17.59% increase compared to last year.

Shandong Dawn Polymer: Revenues reaches RMB 2.238 billion

In the first half of the year, Dawn achieved revenues of RMB 2.238 billion, representing a 1.03% drop compared to the previous year.

Dawn recorded revenues of RMB 2.238 billion in the first half of 2023.

The company’s revenues in modified plastics dropped 15.39% YOY to RMB 1.450 billion.

Adsale Plastics Network found out that Dawn has collaborated with partners to develop China’s first material for injection molding rechargeable battery case. Using injection molding can significantly reduce the production cost.

In addition, Dawn also expanded the development and application of halogen-free PC, PC/ABS products, including application in charging station, lighting, electrical appliances and household appliance terminal plate.

In view of the increasing demand for low-carbon products, Dawn has developed post-consumer recycled (PCR) materials of which 121 types of material have received certification. For example, its certified PCR materials are adopted by BMW.

Shanghai Pret Composites: Net profit more than triple

Shanghai Pret Composites expects its net profit to shareholders to reach RMB 200-250 million, with an increase of 329.76%-437.20% YOY.

Pret triples its net profit to shareholders compared to last year.

Pret stated that raw material price of commodities dropped compared to last year, leading to an increase in gross profit margin of products of the company. Meanwhile, continuous market expansion and cost control implementation have shown positive impacts on company growth.

Moreover, its subsidiary on new energy – High Star, which has completed restructuring in August last year, has been included into the financial report for the first-half year. With the increasing productivity and sales of High Star, profit is expected to steadily increase.

Nanjing JuLong Science & Technology: Net profit rises more than 60%

Nanjing JuLong achieved revenues of RMB 754 million, which is a slight drop of 3.73% compared to last year.

Nanjing JuLong’s 66% sales came from the automotive sector.

Nanjing JuLong’s major downstream application is automotive and new energy vehicles. Revenues in automotive sector increased 1.92% YOY to RMB 496 million, contributing 66% of the total revenues.

The company is now working on numerous material projects with renowned automakers and Tier 1 suppliers of automotive parts.

Through formulation and process advancement, Nanjing JuLong developed a halogen-free PA66 material which resolves erosion and separation problems. Under high temperature and humidity, it maintains low separation and high electric efficiency, which meets market demand for quick recharge and safety for new energy vehicles.

Shenzhen WOTE Advanced Materials: Net profit slightly increases

WOTE recorded revenues of RMB 719 million in the first half of 2023, a 1.15% drop compared to last year; while it secured net profit of RMB 11.1014 million, an increase in 2.41% compared to last year.

The construction of plant, supporting facilities and production lines was completed for the production capacity expansion project of 20,000 tons of LCP resin.

The investment looks to meet the high requirements in sectors including communication, consumer electronics, automotive electronics, new energy, and drones.

The company has also accelerated the progress of the project for 5,000 tons of high efficiency PPA resin and compounded materials, which is in its second stage.