New Stock News | Comprehensive new materials supplier Red Avenue New Materials Group (603650.SH) passes HKEX hearing, has established a global customer base.

According to the disclosure by the Hong Kong Stock Exchange on September 16, Red Avenue New Materials Group Co., Ltd. (referred to as: Red Avenue New Materials Group, 603650.SH) has passed the listing hearing for the Main Board of the Hong Kong Stock Exchange, with HAITONG INT'L acting as its sole sponsor. According to the prospectus, the company is a comprehensive new materials supplier in China. The company is principally engaged in the research and development, production, marketing, sales and distribution of new materials. According to Frost & Sullivan, new materials is an industry term referring to newly developed materials or improved traditional materials with enhanced properties or specific functional characteristics. During the track record period, the company's principal businesses comprised three segments, namely (i) rubber additives for tires and other chemical products; (ii) electronic materials; and (iii) fully biodegradable materials. With respect to the rubber additives for tires and other chemical products segment, according to the Frost & Sullivan report, the company ranked first in sales revenue in both the global and China rubber additives for tires phenolic resin markets in FY2025, with market shares of 41.4% and 45.9%, respectively. In the field of electronic materials, the company ranked first among domestic suppliers in sales revenue in both the China semiconductor photoresist market and the China thin-film transistor (TFT) array photoresist market in FY2025, with market shares of 5.8% and 26.2%, respectively. In the rubber additives for tires and other chemical products business segment, the company's major product categories include rubber resins and additives, such as phenolic resins, PTBP and other chemical products. These products are primarily used in the production of automotive tires and other rubber products to optimize various properties of rubber products, such as their tackiness, strength and safety. The product offerings of the company's electronic materials segment are mainly divided into (i) semiconductor materials, including semiconductor photoresists, CMP polishing pads, high-purity solvents and EBR; and (ii) display panel materials, including display panel photoresists, organic insulating films and luminescent materials. The company's electronic materials are primarily used by downstream customers in the production of semiconductors and display panels. With respect to the fully biodegradable materials segment, the company's products mainly include PBAT products primarily used for packaging materials and agricultural mulch films. The company is positioned in the midstream of the industry chain, supplying functional resins, photoresists and auxiliary chemical products to downstream industries such as tire, automotive, semiconductor and display panel manufacturers. The company's major raw materials include phenol, formaldehyde, resins and solvents. In addition to procuring raw materials from suppliers, the company is also committed to extending its core product business upstream along the industry chain to expand into the production of key raw materials and intermediates, with a view to achieving in-house production of certain key intermediates, thereby ensuring supply stability, enhancing cost control capabilities, and improving the company's overall ability to provide comprehensive supply services to downstream customers. As of the latest practicable date (September 12, 2026), the company operates seven production facilities across multiple provinces and cities in China, including Shanghai, Zhangjiagang, Zhenjiang, Hubei, Beijing and Changzhou. The total gross floor area of these facilities is approximately 146,000 square meters, with total designed annual production capacities of over 200,000 tonnes of rubber resins, electronic resins and additives, and approximately 1,000 tonnes and 6,000 tonnes of semiconductor photoresists and display panel photoresists, respectively. The company has established a global customer base covering leading enterprises in the automotive tire, semiconductor and display panel industries. The company maintains long-term stable relationships with its major customers. The company's products have been certified and recognized by customers. With respect to tire rubber additive customers, the company has established ongoing business relationships with numerous well-known domestic and international tire manufacturers, covering the top 20 global tire manufacturers, which collectively accounted for more than 70% of the global tire industry market share in 2025. With respect to the electronic materials segment, the company has also established business relationships with semiconductor and display panel manufacturers that hold significant market positions in their respective industries, covering multiple leading 8-inch and 12-inch wafer fabrication companies in China. In terms of financials, in FY2023, FY2024, FY2025 and the first six months of 2026, the company achieved revenue of approximately RMB2.937 billion, RMB3.263 billion, RMB3.421 billion and RMB2.133 billion, respectively; during the same periods, the annual/period profit was approximately RMB404 million, RMB534 million, RMB577 million and RMB389 million, respectively.