Ruifeng Advanced Materials Sees Modest Revenue Growth in First Half, PBAT Modified Products Achieve Bulk Sales

Ruifeng Advanced Materials(300243) Announcement: In the first half of the year, the company achieved an operating revenue of 1.01 billion yuan, an increase of 2.6% year-on-year; net profit attributable to shareholders was 10.8 million yuan, a decrease of 52.6% year-on-year; net profit attributable to shareholders excluding non-recurring gains and losses was 11.57 million yuan, a decrease of 44.9% year-on-year. Despite the decline in performance, the company is steadily progressing in its traditional business while actively exploring new business areas, laying the groundwork for future development.

Traditional business is steadily progressing, and the growth rate of engineering plastic additives is impressive.

As a company specializing in the production and sales of plastic additives and engineering plastic additives, Ruifeng Advanced Materials currently has a comprehensive production capacity of nearly 200,000 tons. During the reporting period, the company adhered to its traditional PVC additives business while leveraging technological innovation to successfully develop toughening modifiers for PC/ABS alloy materials and high rubber powder for ABS, gradually expanding its market share.

Benefiting from the growth in the overall sales of its main products, the company achieved a year-on-year increase in sales revenue. Among them, the performance of engineering plastic additives was particularly outstanding, with sales revenue of 67.23 million yuan in the first half of the year, a significant increase of 82.49% compared to the same period last year, becoming an important force driving revenue growth. However, due to increased expenses and expenditures, the company's performance declined in the current period.

Degradable materials continue to advance, but market promotion still faces pressure.

In the field of biodegradable materials, the company’s layout continues to advance, currently possessing a production capacity of 60,000 tons of PBAT. In the first half of 2025, the company utilized self-produced PBAT products for modification and has achieved mass sales of modified PBAT products.

However, as an emerging industry in China, biodegradable materials are still in the early stages of development. Market promotion faces certain pressures due to factors such as underperformance in policy implementation, an incomplete supporting system across the upstream and downstream industry chains, and higher prices of downstream products compared to traditional non-degradable products. The downstream demand for PBAT products is also greatly affected by raw material prices and the implementation of relevant policies in the biodegradable materials market.

The diversified new business layout holds promising potential for future growth.

It is worth noting that Ruifeng High Materials is actively carrying out the research, development, and investment of multiple new products to seek new growth drivers for the company's future development.

Specialty Polyester Materials Business: The company's 60,000-ton PBAT production facility can accommodate the production of specialty polyesters such as PETG/PCTG, and the related products have successfully passed pilot tests. The company is currently undergoing technical transformation of this facility to enable it to meet the industrial production of PETG/PCTG products simultaneously, with the transformation work expected to be completed by September 2025, aiming for operation in October. PETG/PCTG products are mainly used in fields such as personal care packaging, home appliances, sheet film products, medical devices, and 3D printing.

Synthetic Biomaterials Business: The wholly-owned subsidiary Ruifeng Bio has completed pilot production of one-step polylactic acid, succinic acid, and dextran products. Among them, the dextran product has already achieved small-batch sales. The company plans to further expand the market and increase production capacity when appropriate. This product is mainly used in the biopharmaceutical field.

Battery Binder Materials Business: The company has launched certain grades of SBR series and other series of anode binder products, which have been sampled and are undergoing testing with multiple lithium battery enterprises. Currently, performance improvement R&D is being carried out to benchmark against imported products. These products are mainly used in lithium-ion battery fields such as 3C, energy storage, and power batteries.

Black phosphorus product business: The holding subsidiary Ruifeng Yuanneng has completed the normal operation of a 100-kilogram scale black phosphorus pilot plant in 2024. Through continuous research and optimization, the reaction conditions have been lowered, efficiency and yield have been improved, and costs have been reduced. Currently, a ton-scale black phosphorus pilot production line is under construction, expected to be completed and put into operation by September. Subsequently, efforts will be actively made to connect with downstream applications and promote cooperation. As a two-dimensional semiconductor material, black phosphorus has broad potential applications in fields such as new energy battery anode materials, flame retardants, catalysts, electronics and semiconductors, and innovative pharmaceuticals.

Although these new businesses are currently in the early stages, they offer vast potential for the company's future growth. Overall, Ruifeng High Materials is seeking new breakthroughs through a diversification strategy while maintaining stability in its core operations, making its future development promising.