National-Level "Little Giant" Invests RMB 1.8 Billion to Boost PEEK Precision Components

Hengbo Shares announced its plan to issue shares to specific investors, aiming to raise gross proceeds (including issuance expenses) of no more than RMB 1.8 billion. The net proceeds, after deducting issuance expenses, are intended to be fully allocated to the Malaysia PEEK Precision Components Industrialization Project, the Jiangmen Intake System and New Energy Vehicle Components Smart Factory Project, the Taizhou PEEK Precision Components Industrialization Project, and to supplement working capital.

Hengbo Co., Ltd. stated that automotive lightweighting has become the global mainstream direction for reducing emissions, improving energy efficiency, and enhancing fuel economy. PEEK, known as "golden plastic," can achieve significant weight reduction compared to traditional metal materials, thanks to its excellent properties such as high temperature resistance, wear resistance, self-lubrication, and high strength.

The company has made forward-looking arrangements in PEEK material modification and sample prototyping, and has conducted product sampling and testing verification with multiple potential customers, while simultaneously advancing business negotiations. It has the foundation for marketization, but currently needs to make up for the lack of large-scale production capacity through the construction of a specialized base, in order to ensure stable order delivery and meet the bulk procurement needs of downstream customers.

Globally, specialized production capacity for PEEK components with precision injection molding and machining capabilities is relatively scarce, resulting in a significant capacity gap in the industry. By investing in high-standard production lines, the company can secure a first-mover advantage and strengthen its competitive position in the market.

Before this private placement, Hengbo Co., Ltd. had already begun to layout PEEK materials. In August 2025, the company announced a joint venture with partner Discover Material Inc. to establish Zhejiang Hengbo Primes High-Performance Materials Co., Ltd., in which Hengbo holds 80% and DMI holds 20%, focusing on the innovation and application of lightweight materials such as PEEK. Preliminary market research has been conducted, and the company has been actively approaching and providing samples to top domestic clients.

Moreover, Hengbo Co., Ltd.’s overseas expansion significantly accelerated in 2025. In June 2025, during an institutional investor briefing, the company explicitly disclosed its plan to initiate expansion initiatives in emerging Southeast Asian markets, aiming to establish a “triangular synergy” manufacturing network centered in Singapore and extending to Malaysia, Thailand, and Indonesia to further deepen its presence in the Southeast Asian market. Additionally, the company has established a wholly-owned subsidiary in Japan and set up a production base there.

Hengbo Co., Ltd. was established in 2005. The company started with motorcycle air intake systems and has since expanded into automotive air intake systems, new energy vehicle thermal management systems, and hydrogen fuel cell cathode filter systems. It maintains cooperation with domestic and international brands such as Dongfeng Nissan, Guangqi, Geely, Chery, BYD, Honda, Yamaha, and Suzuki. It is a national specialized, refined, unique, and innovative "little giant" enterprise, a leading enterprise in China's internal combustion engine components industry, a national high-tech enterprise, and a Zhejiang Province "Hidden Champion" cultivation enterprise.

According to the 2025 annual report, the company achieved operating revenue of RMB 1.14 billion during the reporting period, an increase of 31.73% year-over-year; net profit attributable to shareholders of the parent company amounted to RMB 136 million, up 4.07% year-over-year; and basic earnings per share were RMB 1.34, an increase of 3.88% year-over-year.