Go-On Shares "Heading South"! Establishes New Materials Company in Yixing, Jiangsu with Registered Capital of 100 Million Yuan

Guoen Co., Ltd. has made new moves in its expansion plans. On August 8, Guoen (Yixing) New Material Development Co., Ltd. was officially registered in Yixing City, Jiangsu Province. Its registered capital of 100 million yuan marks the further implementation of Guoen Co., Ltd.'s "southward" strategy.

Guoen Co., Ltd. was founded in 2000 and is located in Chengyang District, Qingdao. In June 2015, the company was listed on the Shenzhen Stock Exchange A-shares. The company’s business scope is extensive, covering chemical new materials such as plastic raw materials and modified products, composite materials, artificial turf, biodegradable materials, optical display materials, and melt-blown filtration materials. It is also involved in the health industry with products such as gelatin and collagen. The company’s founders, Mr. Wang Aiguo and his spouse, control approximately 52.53% of the company’s shares.

To gain a competitive edge in the special engineering plastics market and strengthen its core competitiveness in high-end application fields, Guoen Co., Ltd. has continued to increase its investment in the research and development of special new materials such as PEEK (polyether ether ketone), while also accelerating its expansion to the south.

Recently, Guoen Co., Ltd. announced that it will leverage its wholly-owned subsidiary Zhejiang Guoen Chemical Co., Ltd. to fully build a vertically integrated platform covering the entire industry chain of polyether ether ketone (PEEK) from polymerization and compounding to finished products. At the same time, it will establish a pilot polymerization platform for styrene engineering materials and a 300,000 tons/year organic polymer modification and composite materials project.

According to the Color Masterbatch Industry Network, Guoen Co., Ltd. has successfully obtained project registration issued by the Economic Development Bureau of the Management Committee of Zhoushan High-tech Industrial Park. The project is expected to have a total investment of 960 million RMB, and plans to build 2 PEEK polymerization production lines, 1 new pilot platform for polyether ether ketone and styrene engineering materials polymerization (with a capacity of 1,000 tons per year), as well as 36 modified and composite material production lines (with a capacity of 300,000 tons per year).

According to the announcement, PEEK materials, owing to their outstanding performance, are widely used in various fields such as aerospace, new energy vehicles, wind power, optoelectronics, semiconductor manufacturing, humanoid robots, low-altitude aircraft, 3D printing, and healthcare. Guo'en Co., Ltd. plans to invest in the construction of a project with an annual output of 1,000 tons of PEEK materials, which is a key step in promoting the industrialization of PEEK materials. This project will prioritize high-growth application scenarios with significant potential for increasing localization rates, providing the market with high-performance specialty material solutions. Additionally, the proposed styrene engineering polymerization pilot platform and the 300,000 tons/year modified and composite materials project will deeply leverage the company’s business synergies in green petrochemical new materials, polymer modification materials, and polymer composites, helping the company further optimize the integrated layout of its new materials segment in the Yangtze River Delta region.

Despite Guoen Co., Ltd.'s frequent moves to expand southward, its performance growth has slowed, urgently needing to explore new growth drivers. In 2024, Guoen's revenue increased by 10.21%, marking the lowest growth rate since its listing; although profit grew by 45.18%, the total profit of 676 million yuan is still lower than the 731 million yuan recorded in 2020.

As early as the end of April this year, Guoen Co., Ltd. announced the official launch of the preparation work for the overseas issuance of shares (H shares) and listing on the Hong Kong Stock Exchange. The Hong Kong listing is regarded as an important measure for Guoen Co., Ltd. to further advance its global strategic layout. The company hopes to leverage this to promote the globalization of its industry layout and explore new incremental markets.