Modified Plastics Companies' 2025 Semi-Annual Report Revealed: Growth Secrets of Leading Listed Companies

In the first half of 2025, the modified plastics industry seemed to have discovered the key to growth, with many listed companies delivering impressive results and their performance soaring. What exactly is the growth secret that has driven such a significant increase in sales? Which sectors have become the leading forces behind this growth? Today, let us delve into the half-year reports of various listed modified plastics companies, analyze their data, and uncover the mystery behind their remarkable growth.

Kingfa Sci. & Tech.: An Industry "Giant" Experiencing Explosive Growth Across Multiple Sectors

In the first half of 2025, Golden Hair Technology achieved an outstanding operating revenue of 31.636 billion yuan, representing a substantial year-on-year growth of 35.5%. The net profit attributable to the parent company reached 585 million yuan, also maintaining a strong growth momentum. The modified plastics business, as a core segment, experienced explosive growth across multiple fields.

In the automotive sector, the development of low-carbon and environmentally friendly PP materials has won the favor of leading global enterprises in automotive cooling systems. Translucent PP materials have been successfully applied to new energy vehicle components. In the first half of the year, global sales of automotive materials soared to 560,300 tons, a year-on-year increase of 21.54%. In the field of new energy materials, environmentally friendly flame-retardant special reinforced polyolefin materials have solved molding process difficulties in the energy storage sector, and high cold-resistant long-chain polyamide products have achieved domestic mass application. Global sales of new energy materials reached 45,000 tons in the first half of the year, a year-on-year growth of 30.06%. The sales growth of modified plastics in the home appliance, electronics and electrical, and consumer electronics sectors was also considerable, at 19.55%, 17.54%, and 23.59%, respectively.

In terms of global expansion, Kingfa Sci. & Tech. has been taking frequent actions. Its factories in Vietnam and Spain have successively begun production, and the factory in Indonesia is about to commence operations. Along with overseas bases such as Kingfa USA, Kingfa Europe, and Kingfa India working in synergy, the company’s global market share has increased significantly. During the reporting period, the sales volume of finished products reached 161,000 tons, representing a year-on-year increase of 33.17%.

Analysis of Growth Reasons

Technology-Driven Innovation: Continuous investment in R&D has led to significant achievements in material performance optimization and process innovation. For example, in automotive materials, technological breakthroughs have enabled the combination of lightweight properties and high performance, meeting the development needs of the automotive industry. In the field of new energy materials, technical advancements have solved challenges in energy storage molding processes, earning market recognition.

Market Precise Positioning: Conduct in-depth research on the differentiated demands for modified plastics across various industries, and develop precise product strategies targeting sectors such as automotive, new energy, and electronics. Ensure products address market pain points to earn customer trust.

Advantages of Globalization Strategy: Actively establishing production bases overseas to achieve localized production and services. On one hand, this helps to avoid trade barriers and reduce tariff risks; on the other hand, it enables quick responses to overseas customer needs and increases market share.

Growth Area Focus

Automotive industry: In addition to traditional automotive parts applications, widely penetrates battery components, interiors, exterior parts, and other aspects of new energy vehicles. With the explosive growth of the new energy vehicle market, the demand for modified plastics for automotive use continues to rise.

In the new energy sector, applications such as energy storage battery casings and photovoltaic module frames have stringent requirements for the flame retardancy, weather resistance, and insulation properties of modified plastics. Kingfa Technology’s products precisely meet these demands, offering broad market potential.

Electronics and Electrical Industry: The trends toward lighter and higher-performance consumer electronics, along with the large-scale construction of electronic equipment such as 5G base stations and servers, have created numerous application opportunities for modified plastics in the electronics and electrical sector.

Polyplastics: Driven by Multiple Engines

In the first half of the year, Polyplast’s total operating revenue reached 4.09 billion yuan, a year-on-year increase of 9.06%, with net profit attributable to the parent company at 20.7 million yuan. The modified materials business can be described as the main growth driver. From the perspective of orders, market demand is booming, with a full order book. Behind this, the newly added production capacity has played a significant role. The new material factories in Ma’anshan, Anhui (50,000 tons) and Binhai, Tianjin (150,000 tons) have been successively put into operation, acting like two sharp blades that quickly eased the pressure on product demand. With ample production capacity, Polyplast is “like a fish in water” in the market, successfully taking on more orders, and revenue from the modified materials segment has surged ahead.

In the automotive sector, leveraging years of established stable customer relationships and excellent product quality, Pretti's business remains rock-solid and continues to grow steadily with the support of increased production capacity. In the non-automotive segment, the company actively explores new markets and taps into new customers, achieving significant breakthroughs that continuously inject fresh momentum into business growth.

The new energy business also performed well, with a significant improvement in operating conditions compared to last year. The demand in the prismatic battery market is strong, with supply falling short of demand. The company's overseas capacity expansion is accelerating, with strategic placements in the United States, Mexico, Thailand, Poland, and other locations, akin to placing key pieces on a global chessboard. The ability to meet overseas customer demands will significantly improve in the second half of the year. The product diversification strategy has shown remarkable results, with the rapid rise of the sodium-ion battery business and orders pouring in. The Zhuhai base's semi-solid-state batteries have successfully rolled off the production line and achieved mass delivery, further enriching the product matrix to cover different application scenarios and customer groups, driving a 21.32% year-on-year increase in the new energy sector's operating revenue.

Analysis of Growth Reasons

Capacity expansion support: New capacity promptly meets market demand, ensures order delivery, and enhances market competitiveness. In both automotive and non-automotive sectors, capacity advantages translate into market share advantages, driving growth in the modified materials business.

Customer Relationship Consolidation and Expansion: Long-term accumulated customer resources in the automotive industry provide a foundation for stable business growth; meanwhile, actively developing non-automotive business clients to expand the customer base and promote diversified business growth.

Precise layout in the new energy business: The company has proactively established its presence in the new energy battery sector, closely following market trends by launching a diversified range of products such as prismatic batteries, sodium-ion batteries, and semi-solid-state batteries to meet the varying needs of different customers, thereby benefiting from the rapid development of the new energy industry.

Growth Area Focus

Automotive modified materials: These materials perform excellently in both traditional and new energy vehicle sectors. They are used in various parts such as automotive interior and exterior decorations, as well as structural components. With the continuous development of the automotive industry, demand is steadily increasing.

New energy batteries such as prismatic batteries, sodium-ion batteries, and semi-solid-state batteries are widely used in fields like energy storage and new energy vehicle power, with broad market prospects, making them an important growth driver for the company.

Dawn Technology: Multiple sectors advancing simultaneously with strong growth momentum

In the first half of 2025, Dawn Holdings achieved an operating revenue of 2.88 billion yuan, a year-on-year increase of 24.08%; net profit was 84 million yuan, a year-on-year increase of 25.8%, showing strong growth momentum.

The elastomer business segment achieved an operating revenue of 377 million yuan, representing a year-on-year increase of 16.94%. With a focus on R&D and innovation, the company maintains its technological leadership in the elastomer industry. The full acquisition of Anhui Bost New Material Co., Ltd. was a major highlight in the first half of the year. This acquisition optimized the product portfolio and extended the industrial chain. The related products for wire and cable materials, combined with Anhui Bost’s silane cross-linked polyolefin cable insulation materials, have formed a strong synergy. In the future, the company will focus on key areas such as power cables, automotive high and low voltage cables, home decoration wires, marine cables, and photovoltaic cables.

During the reporting period, the modified plastics business segment achieved revenue of 2.129 billion yuan, representing a year-on-year increase of 22.35%. The company has deeply explored the demands and pain points of downstream users and customers, focusing on the development of lightweight, comfortable, environmentally friendly, and low-carbon product series. This has successfully expanded the market application areas of its products, injecting new momentum into the growth of the modified plastics business.

In the first half of the year, the masterbatch business segment achieved an operating income of 129 million yuan, a year-on-year increase of 32.76%. The company continues to focus on the home appliance masterbatch sector, delving into market demand, and has established partnerships with leading enterprises in the industry to further consolidate its position in the home appliance masterbatch field, thereby promoting the steady growth of the masterbatch business.

In addition, Dawn Co., Ltd. has made strong advances into high-end technology fields, achieving technological breakthroughs in elastomer materials for robotic simulated skin and deepening cooperation with Xi'an Jiaotong University in the field of low-altitude economy. In terms of international transformation, the company has gained experience by establishing a production plant in Russia and is currently focusing on opportunities in regions such as Southeast Asia, Central Asia, Africa, and North America. The company is actively promoting overseas expansion, paving the way for broad development prospects in the future.

Analysis of Growth Reasons

R&D Innovation Leadership: Continue to invest in research and development in business segments such as elastomers and modified plastics, launching new products that align with market trends, such as lightweight and environmentally friendly modified plastics, to meet the needs of downstream industries.

Industry chain integration: By acquiring Anhui Bost New Materials Co., Ltd., improve the industry chain layout, enhance synergy, boost product competitiveness, and promote related business growth.

Market Penetration and Expansion: Deepen efforts in traditional advantage areas such as home appliance color masterbatches to consolidate market position; actively explore new fields, such as robot simulation skin elastomer materials and the low-altitude economy sector, seeking new growth opportunities.

Focus on Growth Areas

Elastomer-related applications: The demand for elastomer materials is increasing in fields such as wires and cables, automotive parts, and household products. In particular, with the development of the new energy industry, the demand for photovoltaic cables and other related products has surged in the wire and cable sector.

Emerging Applications of Modified Plastics: Lightweight and environmentally friendly modified plastics have broad application prospects in industries such as automotive, construction, and packaging, aligning with industry development trends.

Color masterbatch home appliance market: The home appliance industry has a stable demand for color masterbatch. Dowon Co., Ltd. maintains growth in this field by leveraging its technological and brand advantages.

Jushi Chemical: Under Pressure, Core Business Still Shows Highlights

In the first half of 2025, Jusco Chemical achieved operating revenue of 1.977 billion yuan, down 10.5% year-on-year, with a net profit attributable to the parent company of 2.8 million yuan. Overall performance was under pressure due to market environment and other factors. However, the company's core flame-retardant modified plastics business performed relatively well. Leveraging its accumulation in flame-retardant technology, the products continuously gained recognition from downstream customers, becoming a bright spot in the company's performance.

In the field of new energy, Jushi Chemical has developed high flame-retardant and aging-resistant modified materials for energy storage battery casings and photovoltaic module frames, successfully entering the supply chains of leading domestic energy storage companies and photovoltaic module manufacturers. This lays a foundation for the company's strategic positioning in the new energy sector. In the electronics and electrical field, the company's research and development of halogen-free flame-retardant PPO/PS alloy materials, applied in 5G base station equipment housings and server cabinets, also demonstrates a certain level of market competitiveness.

Analysis of Growth Reasons

Flame retardant technology advantages: long-term investment in flame retardant technology research and development has established technical barriers, resulting in superior product performance that meets the stringent flame retardant requirements of industries such as new energy and electronics and electrical appliances.

Market Insight: Accurately seize development opportunities in the new energy and electronics industries, proactively plan product research and market expansion, and secure a foothold in emerging markets.

Growth Area Focus

New energy flame-retardant materials: Energy storage battery casings and photovoltaic module frames require high flame-retardant and weather-resistant performance. Jushi Chemical's products have significant market potential in this field.

Electronic and electrical flame-retardant applications: The demand for halogen-free flame-retardant materials is increasing for electronic devices such as 5G base stations and servers, and the company's products align with this trend.

Tongyi Co., Ltd.: Import substitution of high-end materials, good growth momentum.

In the first half of 2025, Tongyi Co., Ltd. achieved an operating revenue of 1.547 billion yuan, representing a year-on-year increase of 13.67%. The net profit attributable to shareholders was 5.6 million yuan, maintaining a good growth trend. The company focuses on the import substitution of high-end modified plastics, continuously optimizing its business structure. The revenue proportion of high-end modified materials increased to 45%, up 8 percentage points compared to the same period last year.

In the consumer electronics sector, Tongyi Co., Ltd. has developed high-flow, high-rigidity modified PC/ABS alloy materials for smartphones and wearable devices, successfully entering the supply chains of leading brands such as Apple and Huawei. In the first half of the year, sales of modified materials for consumer electronics increased significantly. In the automotive sector, the company’s scratch-resistant and anti-aging modified PP materials have been applied to exterior parts such as door panels and pillars of new energy vehicles, and have entered the supply chains of automakers such as BYD and XPeng. Sales of automotive modified materials also continued to grow in the first half of the year. In addition, the company has achieved breakthroughs in the medical field, with its medical-grade modified PP materials passing FDA certification and revenue from medical modified materials increasing by 35.2% year-on-year in the first half of the year.

Analysis of Growth Reasons

Successful import substitution strategy: Seizing the market opportunity of domestic import substitution for high-end modified plastics, gradually achieving localized supply of high-end materials through technological research and development and product quality, thereby gaining market share.

Multi-sector market expansion: Strategically position in multiple fields such as consumer electronics, automotive, and medical. Develop specialized modified materials tailored to the needs of different industries to meet diverse market demands.

High-quality customer resources: Established partnerships with leading companies such as Apple, Huawei, BYD, and XPeng. These premium customers not only bring stable orders but also enhance brand influence.

Growth Area Focus

High-end materials for consumer electronics: Smartphones, wearable devices, and other products have high demands on material performance. Tongyi Co., Ltd.'s high flowability and high rigidity modified materials align with the requirements for lighter and higher-performance products.

Automotive Lightweight Materials: The development of new energy vehicles is driving the process of automotive lightweighting. The company’s scratch-resistant and anti-aging modified PP materials meet the lightweight and durability requirements for automotive exterior parts.

Medical-grade Modified PP Materials: Medical-grade modified PP materials have passed FDA certification and entered the medical market. With the increasing demand for plastic products in the medical industry, the market outlook is promising.

Nanjing Julong: Leading in Engineering Plastics, Growth Across Multiple Fields

In the first half of 2025, Nanjing Julong achieved operating revenue of 1.257 billion yuan, representing a year-on-year increase of 25.75%. Net profit attributable to shareholders reached 57 million yuan, up 24.68% year-on-year. The company’s core business of modified engineering plastics continued to grow, with revenue reaching 1.135 billion yuan in the first half of the year, an increase of 22.3% year-on-year. Among these, high-performance nylon and PPA products performed particularly well.

In the field of new energy vehicles, Nanjing Julong has developed high-strength, high-temperature resistant nylon materials that are used in battery pack frames and motor end caps. These materials have been supplied to companies such as CATL and NIO. In the first half of the year, sales of engineering plastics for new energy vehicles reached 17,000 tons, representing a year-on-year increase of 38.6%. In the rail transit sector, the company has developed flame-retardant, low-smoke, and low-toxicity modified PP materials for use in high-speed train interior panels and cable troughs. These materials have successfully won bids for multiple projects with CRRC. In the first half of the year, sales of modified materials for rail transit reached 6,000 tons, a year-on-year increase of 31.2%. Additionally, the company has also made strides in the photovoltaic sector, developing weather-resistant modified PC materials for use in photovoltaic inverter casings. In the first half of the year, revenue from modified materials for photovoltaics was 90 million yuan, a year-on-year increase of 27.5%.

Analysis of Growth Reasons

Technical R&D Strength: Focused on the development of modified engineering plastics, with leading technology in high-performance nylon, PPA, and other products. The products exhibit superior performance, meeting the stringent material requirements of industries such as new energy vehicles and rail transportation.

In-depth Industry Collaboration: Establish deep cooperative relationships with leading industry companies such as CATL, NIO, and CRRC. By participating in customers’ product development processes and providing customized material solutions, we have gained their trust.

Market trend grasp: Stay closely aligned with the development trends of industries such as new energy vehicles, rail transit, and photovoltaics. Proactively plan product development and market promotion to gain a first-mover advantage in emerging markets.

Growth Area Focus

Key component materials for new energy vehicles, such as battery pack frames and motor end covers, have extremely high requirements for material strength and high-temperature resistance. Nanjing Julong's products have significant advantages in this field.

Interior and cable materials for rail transit: High-speed train interior panels and cable trays have strict requirements for flame retardancy and low smoke toxicity. The company's products comply with industry standards, and its market share is gradually expanding.

The rapid development of the photovoltaic industry has driven demand for photovoltaic inverter enclosure materials. The company’s weather-resistant modified PC materials are suitable for complex outdoor environments and have promising application prospects.

Yinxi Technology: The Rise of Recycled Materials, Steady Growth Across Multiple Fields

In the first half of 2025, Yinxiji Technology achieved operating revenue of 1.085 billion yuan, a year-on-year increase of 23.99%; net profit attributable to shareholders was 47.8 million yuan, up 19.32% year-on-year. The company actively promotes business transformation and intensifies research and production of recycled modified plastics. In the first half of the year, revenue from recycled modified plastics reached 523 million yuan, a year-on-year increase of 35.6%, becoming the company's new growth engine.

In the automotive sector, Yinxi Technology's recycled modified PP and ABS materials have successfully entered the supply chains of automotive companies such as Geely and Great Wall, thanks to their cost advantages and environmental characteristics. These materials are used in auto parts like bumpers and dashboards, with sales of automotive recycled modified materials reaching 13,000 tons in the first half of the year, a year-on-year increase of 41.8%. In the home appliance sector, the company's developed recycled modified HIPS materials are used in refrigerator liners and washing machine shells, and are already supplied to home appliance companies like Midea and Haier. The sales of home appliance recycled modified materials reached 21,000 tons in the first half of the year, a year-on-year increase of 32.4%. Additionally, the company has made progress in the consumer electronics sector, with its developed recycled modified PC materials used in computer casings, generating revenue of 60 million yuan in the first half of the year, a year-on-year increase of 29.7%.

Analysis of Growth Reasons

Business Transformation Precision: In line with the global environmental protection trend, promptly shift the business focus towards recycled modified plastics, seize the growth opportunities in the recycled materials market, leverage technological accumulation to achieve large-scale production and sales of recycled modified plastics, and drive performance growth.

Dual Advantages of Cost and Environmental Protection: Recycled modified plastics reduce production costs by reusing raw materials, making them more price-competitive compared to virgin modified plastics; meanwhile, they align with downstream enterprises' green production and sustainable development needs, winning more customer cooperation opportunities.

Multi-sector market coverage: simultaneously advancing the application of recycled modified plastics in multiple fields such as automotive, home appliances, and consumer electronics, thereby diversifying single-market risks, promoting synergistic growth across various sectors, and jointly driving the overall performance improvement of the company.

Growth Area Focus

Automotive Recycled Modified Materials: With the automotive industry's increasing focus on cost control and environmental requirements, the demand for recycled modified PP and ABS materials in components such as bumpers and dashboards continues to grow. Silver Jubilee Technologies holds a significant first-mover advantage in this field.

Recycled modified materials for home appliances: The home appliance industry has a large production volume and stable demand for materials. The application of recycled modified HIPS materials in refrigerator and washing machine components not only meets environmental requirements but also reduces production costs for home appliance companies, offering a broad market space.

Overall, in the context of the global economic downturn, the modification industry has fully entered an era where big fish eat small fish. Leading domestic enterprises continuously expand their product lines and increase production capacity, integrate upstream industries, and aggregate raw materials themselves. While continuously reducing material costs, they leverage economies of scale to seize market share. Although sales and profits increase, low profit margins remain the norm in the industry.

Most modified plastics companies—such as Kingfa Sci & Tech, Polyplastics, and Dawn Polymer—are expected to experience growth in the first half of 2025. This growth is not only attributable to diversified business layouts, reasonable capacity expansion, global market development, and technological breakthroughs, but also to an accurate grasp of demand in downstream niche sectors. Although some enterprises are facing certain pressures, they are also actively transforming or venturing into new fields. In terms of growth areas, sectors such as automobiles (especially new energy vehicles), new energy (energy storage, photovoltaics), electrical and electronics, consumer electronics, and rail transit continue to contribute stable growth. Sub-segments such as recycled modified materials and high-end engineering plastics, as well as emerging fields like humanoid robots and AI servers, have become new highlights for the industry. Building factories abroad together with domestic supporting enterprises is also a growth highlight for major companies. By effectively leveraging these strategies, companies can still achieve significant growth in the highly competitive landscape of 2025. As the saying goes, in an era where big fish eat small fish, survival is most important.

Source: TES Additives and Resins