Red Avenue New Materials Group Co., Ltd.

彤程新材

📊 Valuation Analysis

💰 Financial Summary (FY2025)

Financial figures are in RMB (some companies report in another currency per the prospectus; see the notes below).

📝 Key Notes

A+H listing (Shanghai: 603650). A diversified new materials supplier with three segments: rubber additives and other chemical products for tyres (67.9% of FY2025 revenue), electronic materials (28.8%; semiconductor and display panel photoresists, the core growth engine) and fully biodegradable materials (3.3%). FY2025 revenue RMB3.421bn (+4.8%), gross margin 23.8% and profit for the year RMB577m. Offer period 9/21-9/24, global offering of 68.1187m H shares, board lot 100 shares, entry cost HK$4,444.38, raising up to about HK$3.0bn; cornerstone investors (including CITIC Bank Investment and Prinx Chengshan) subscribed about US$126.4m. Total A+H market capitalisation is about HK$46.7bn based on the A-share price.

🏢 Company Profile

Red Avenue New Materials Group Co., Ltd. is a diversified new materials supplier already listed on the Shanghai Stock Exchange (603650) and now dual-listing H shares in Hong Kong. It operates three segments: (1) rubber additives and other chemical products for tyres, its traditional core business supplying major global tyre makers; (2) electronic materials, covering semiconductor and display panel photoresists, which has become the main revenue growth engine (rising from 19.1% of FY2023 revenue to 28.8% in FY2025) on demand from the semiconductor and display industries; and (3) fully biodegradable materials. Revenue was RMB2.937bn, RMB3.263bn and RMB3.421bn in FY2023, FY2024 and FY2025 respectively. Ms Zhang and the entities she controls, Red Avenue Investment and Virgin Holdings, will hold about 54.89% after listing.