Daon Shares Net Profit Growth of 41.69%, Significant Progress Made in Robot Elastomer Materials

Recently, Dawn Co., Ltd. released its 2025 semi-annual report. The company achieved a year-on-year increase of 24.08% in operating revenue, a year-on-year increase of 38.93% in operating profit, a year-on-year increase of 33.67% in total profit, and a year-on-year increase of 26.14% in net profit. The net profit attributable to shareholders of the listed company after deduction of non-recurring gains and losses increased by 41.69% year-on-year.

Regarding each business:

(1) Elastomer business segment: Achieved an operating income of 376.9767 million yuan, a year-on-year increase of 16.94%.

During the reporting period, TPV products prepared with low-oil ultra-high molecular weight EPDM have completed batch validation at the component level with key customers and will be used in mass production to replace imported materials on the non-appearance side of glass guide rails. Efforts are being made to promote the application of rigid TPV in single-layer tubes. Compared with three-layer tubes, single-layer tubes offer higher production efficiency and lower costs, reducing costs by more than 40% compared to traditional nylon tubing. These have been mass-applied in best-selling models of several leading new energy vehicle manufacturers.

In the field of wire and cable materials, the company has developed halogen-containing and halogen-free flame-retardant TPV and TPE cable compounds, successfully developed multiple cable compounds including 105℃ irradiated cross-linked low-smoke halogen-free flame-retardant cable compounds, 125℃ silane cross-linked low-smoke halogen-free flame-retardant cable compounds, and UV cross-linked polyolefin cable compounds. These efforts complement the silane cross-linked polyolefin insulated cable compounds produced by its wholly-owned subsidiary Anhui Boster New Materials Co., Ltd. In the future, the company will focus on developing products for power cables, automotive high and low voltage cables, home decoration wiring, marine cables, photovoltaic cables, and other fields.

The launch of a series of EVA foam shoe sole masterbatches featuring high resilience, low shrinkage, and cushioning has successfully opened up the application space for the company's elastomer products in the footwear market. The production and sales volume of HNBR products have significantly increased year-on-year, with active efforts to develop strategic customers both domestically and internationally, and product validation is being advanced as planned.

In addition, the company is comprehensively cooperating with a well-known tire enterprise to develop new thermoplastic elastomer (DVA) application technology for high gas barrier layers in tires, and is accelerating the road testing of finished tires, with data meeting the expected plan. It is reported that currently only ExxonMobil in the United States possesses this preparation technology, which is regarded as the world's third-generation new material for tire gas barrier layers.

It is particularly noteworthy that the Dawn Elastomer R&D team has made significant progress in several areas, including ultra-soft artificial muscle TPE, artificial skin SiTPV, conductive TPE, thermochromic, and photochromic TPE, with simultaneous research and development reserves. The artificial muscle TPE can achieve a Shore hardness as low as 0A, featuring ultra-softness, excellent elasticity, and a dry, non-greasy surface. The SiTPV for artificial skin offers a strong skin-like feel and high strength. Conductive TPE boasts a resistivity as low as Ω·m, making it possible to directly print circuits on robots, which could greatly reduce or even eliminate the need for cables in robots. Thermochromic and photochromic TPEs enable robots to simulate human facial expressions, significantly reducing the need for sensors on robots. These advancements are expected to help transition current robots from being expensive, bulky, and inflexible to being nimble, affordable, and realistic, moving them from display models to truly civilian applications.

(2) Modified plastics business: achieved operating revenue of 2,128.7554 million yuan, a year-on-year increase of 22.35%.

During the reporting period, innovative development of flame-retardant, low-odor, and high-gloss, spray-free PCR materials was achieved, enabling the research and application of high-end PCABS, polypropylene, and styrene PCR materials. Through material and finished product testing, multiple grades successfully entered the mass production stage. Collaborating with upstream raw material suppliers, technical breakthroughs were made to develop cost-effective weather-resistant materials, which have been extensively used in the construction sector.

(3) Color masterbatch business: achieved operating income of 129.3511 million yuan, a year-on-year increase of 32.76%. Significant breakthroughs were made in segmented fields such as functional masterbatches for engineering plastics, functional masterbatches for special fibers, and functional masterbatches for high-end polyester films.

(4) Copolyester Business: Focusing on key advancements in products such as PBAT, PETG, PCTG, and TPU, the company has completed the development and validation of PBAT catalysts and bio-based polyester materials. Three different bio-based degradable polyester materials have been developed, with pilot-scale production and application evaluations completed. PCTG is primarily targeted at customers in the e-cigarette and medical fields, while TPU focuses on differentiated product development, and efforts are being accelerated to advance the construction of the 100,000-ton TPU, 60,000-ton polyol, and new high-temperature copolyester material (Phase I) project. The company has carried out flexible technological upgrades to its PBAT units, using the esterification platform to develop and absorb new products suitable for PBAT facilities, and has produced high-quality PETG products for sale.

In terms of research and development, the company has successfully carried out new projects including conductive plastic carrier tapes, thermally enhanced PPS, novel bio-based biodegradable polyester materials, high-temperature and UV-resistant low-viscoelasticity elastomer materials, food-grade modified PVA coating solutions, hydrolysis-resistant/heat-resistant flame-retardant PC and alloy materials, medical-grade TPV new products, and translucent, easily weldable high-strength reinforced polypropylene materials.

In terms of industry-university-research collaboration, joint efforts with Beijing University of Chemical Technology have been made to develop technologies for fatigue-resistant, cut-resistant, and high-slip-resistance polyurethane elastomers, the development of a new generation of thermoplastic elastomers based on reversible cross-linking, and the development of SiR/TPU thermoplastic elastomer foam materials for stain-resistant sports shoe midsoles, among three key projects. Collaborations with South China University of Technology focus on developing a new generation of thermoplastic vulcanizates based on dynamic covalent thermoreversible cross-linking, as well as the research and development of starch modification projects. Product development in the flame retardant direction is being conducted with Shandong University of Science and Technology. The first overseas joint laboratory has been established with the Nippon Chemical Industrial Co., Ltd. Integrated Research Institute. Successfully applied for the Shandong Province Key Laboratory for the Preparation and Application of New Thermoplastic Elastomer Materials.