Daoen Co., Ltd. Reports Over RMB 6 Billion in 2025 Revenue Amid Surge in Modified Plastic Sales

On the evening of March 30, Daoen Co., Ltd. (002838) released its 2025 annual report. Amid the trend of high-end, green, and intelligent development in the chemical new materials industry, the company seized opportunities in emerging industries such as new energy, low-altitude economy, and artificial intelligence, achieving record highs in both sales and revenue, with steady growth in operating performance.

I. Core Performance: Dual Growth in Revenue and Profit Driven by Increased Volume and Higher Prices

In 2025, the company achieved revenue of 6.056 billion yuan, an increase of 14.25% year-over-year; net profit attributable to shareholders was 189 million yuan, an increase of 34.03% year-over-year; and net profit excluding non-recurring items was 172 million yuan, an increase of 46.82% year-over-year, indicating a significant improvement in profit quality.

From a business structure perspective, core segments showed divergent performance but improved overall.

Modified plastics: Revenue of 4.399 billion yuan, accounting for 72.65%, with a year-on-year growth of 15.60%, serving as the core engine of performance growth. The annual sales volume was 474,900 tons, with a year-on-year increase of 22.37%, and the capacity utilization rate reached 98.96%, close to full production. Lightweight LFT materials and halogen-free flame-retardant materials have entered the supply chains of multiple new energy vehicle manufacturers, and PCR recycled materials have achieved mass production. Although product prices have decreased with the decline in raw material prices, the increase in sales volume effectively offset the impact of the price drop.

Thermoplastic elastomers: revenue of 832 million yuan, accounting for 13.74%, an increase of 8.33% year-on-year.The gross margin reached 23.55%, an increase of 4.29 percentage points year-on-year, becoming the core driver of improved profitability.Among them, the TPV product grew by 16.26% year-on-year, with batch applications in areas such as cooling fluid pipes for new energy vehicles and car mats; the production and sales of HNBR products have significantly increased. Affected by the 50,000 tons of new production capacity coming online in 2025, the current capacity utilization rate is temporarily at 64.00%. Subsequently, as the production capacity is released, the scale effect will gradually become apparent.

Color masterbatch category: Revenue of 274 million yuan, accounting for 4.52%, a year-on-year increase of 10.78%, with a solid advantage in the home appliance field, and a 13.91% decrease in inventory, making the production and sales connection smoother.

Revenue composition

Industries, products, regions, and sales models that account for more than 10% of the company's revenue or operating profit

II. Continuous Improvement of Production Capacity and Industrial Chain Layout

The company is advancing capacity building and M&A simultaneously, continuously strengthening and supplementing the industrial chain.

Current production capacity: modified plastics—designed capacity of 500,000 tons, capacity utilization rate of 98.96%, operating at a high level; thermoplastic elastomers—designed capacity of 90,000 tons, with a newly commissioned capacity of 50,000 tons currently ramping up; color masterbatch—designed capacity of 40,000 tons, capacity utilization rate of 90.52%.

Under Construction and Expansion: The Phase II expansion project of Longkou New Materials in Shandong is progressing steadily, encompassing 100,000 tons of TPU, 60,000 tons of polyols, and new high-temperature copolyester materials. Following flexible retrofitting of the PBAT facility, PETG products have achieved mass production and sales. The 100,000-ton expansion project for modified plastics is also advancing smoothly, further solidifying the company’s industry leadership.

M&A Integration: Fully acquired Anhui Boost New Materials to perfect the cable material product matrix; acquired 80% equity of Ningbo SK Synthetic Rubber to achieve independent production of EPDM core raw materials, addressing the weakness in the "polymerization - modification - application" industrial chain, and enhancing supply chain security and cost advantages.

Meanwhile, the company has comprehensively advanced quality improvement, cost reduction, and efficiency enhancement, optimized production processes and financing channels, and continuously increased production capacity utilization across all bases. Its digital transformation has achieved remarkable results, with Daoen Co., Ltd. and its subsidiaries selected as provincial intelligent factories and “Morning Star Factories” for the digital economy.

III. Focus on Elastomer Characteristics to Build a Green, Lightweight New Materials Enterprise

In 2026, Dawn Co. will implement five major strategic control models, including product structure optimization and lean supply chain management, to focus resources on high-margin products, accelerate the industrialization of DVA materials, and advance the R&D and application of cutting-edge materials for robots, promoting domestic substitution. At the same time, the company will adopt a dual-driven approach of internal growth and external M&A, speeding up the construction of overseas production bases (such as in Vietnam) and the release of domestic production capacity, continuously increasing R&D investment, deepening cooperation with customers in the fields of new energy and artificial intelligence, and increasing the application ratio of green and low-carbon materials (PCR, bio-based materials) in high-end projects. Driven by emerging demands in the new energy vehicle and robot sectors, as production capacity ramps up and high-end materials come into play, the company is expected to achieve both volume and profit growth, further consolidating its core competitiveness in the field of high-performance composite new materials.