Modified Plastics Firm Zhongsu Shares Debuts on ChiNext, Raising 682 Million Yuan

On September 22, Zhongsu Co., Ltd. (Stock Code: 301686) officially listed on the ChiNext board of the Shenzhen Stock Exchange, entering the A-share capital market and ushering in a new phase of corporate development.

A "Little Giant" in Modified Plastics

According to public information, Zhongsu is a national-level key "Little Giant" enterprise specializing in new and advanced technologies. Its core business focuses on the R&D, production, and sales of modified engineering plastics. The company has built a product matrix centered on high-performance engineering materials and specialty functional materials, serving industries such as consumer electronics, new energy vehicles, energy storage, and smart homes. End products include mobile phones, smart wearables, tablets, laptops, Bluetooth speakers, energy storage power supplies, new energy vehicles, and home appliances.

Guided by a product differentiation strategy, the company prioritizes the development of high-value-added modified engineering plastics to meet the personalized material requirements of downstream products, particularly in fast-iterating sectors like consumer electronics. According to its prospectus, Zhongsu has not only built relationships with terminal brand clients such as Huawei, Samsung, and Xiaomi but has also entered the supply chains of component, module, and precision structure manufacturers including BYD, Foxconn, and Huaqin Technology.

The company's product portfolio includes high-performance engineering materials such as modified PC, PC/ABS, PA, PPA, PBT, and PET. It has also developed specialty functional materials—such as Laser Direct Structuring (LDS) materials, Nano Molding Technology (NMT) specialty engineering materials, and ultra-high-temperature-resistant specialty nylon materials—to address specific customer needs for electrical interconnection, low dielectric properties, high-temperature resistance, and waterproofing/heat dissipation.

Thanks to advantages such as heat resistance, high strength, toughness, wear resistance, and impact resistance, the modified plastics industry has grown rapidly in recent years. According to data from Zhiyan Consulting, the global modified engineering plastics market reached USD 50.952 billion in 2024, up 8.18% year-on-year. From 2016 to 2024, China's modified engineering plastics output rose from approximately 680,000 tons to about 2 million tons. From 2025 to 2031, output is expected to grow from approximately 2.22 million tons to 4.08 million tons, representing a compound annual growth rate of 10.68%.

Internationally, the modification rate (modified plastics output/total plastics output) is commonly used to measure the industry's position within the broader plastics sector. In 2024, China's and the global plastic modification rates were 23.54% and 49.50%, respectively. The company believes that as leading domestic enterprises continue to advance their modified plastics technologies and manufacturing capabilities and expand business scale, China's modification rate will keep rising, offering substantial room for future growth.

Against this backdrop of rapid industry development, Zhongsu has maintained consistent revenue growth. In 2023, 2024, and 2025, the company reported operating revenues of RMB 537 million, RMB 700 million, and RMB 749 million, respectively, with net profits attributable to shareholders of RMB 79 million, RMB 100 million, and RMB 127 million. In the first half of 2026, operating revenue reached RMB 443 million, up 31.38% year-on-year, while net profit attributable to shareholders was RMB 61 million, up 2.54%.

The company attributed the first-half revenue growth primarily to a significant increase in sales from emerging business segments such as automotive, smart home, and robotics, with notable growth in product orders and shipment volumes driving overall revenue. The relatively smaller increase in net profit was mainly due to changes in product mix and fluctuations in raw material prices.

Embarking on a New Journey in the Capital Market

In this IPO, Zhongsu publicly issued 12.3329 million shares, accounting for approximately 25% of the total post-issuance share capital, at an issue price of RMB 55.28 per share, corresponding to total funds raised of RMB 682 million. The proceeds will be used for the construction of a high-performance engineering materials intelligent production base, the expansion of the Jiangxi Zhongsu production base, the establishment of a new materials engineering technology research center, and the supplementation of working capital.

Modified plastics represent a key development area for new materials in China and form an important part of the country's strategic emerging industries and innovation-driven development strategy. Process improvements and technological maturation in the modified plastics industry can effectively promote lightweight, environmentally friendly, and low-carbon development across multiple industries, achieving the goals of "replacing steel with plastic" and "replacing wood with plastic," while meeting the growing demand for high strength, hardness, heat resistance, and aging resistance.

The company stated that through this listing, it will focus on enhancing R&D capabilities, enriching its product mix, and expanding existing production capacity, thereby strengthening its overall technological strength, reinforcing its competitive advantages, and solidifying its foundation for future growth. Additionally, the company aims to leverage this listing to attract and retain top talent in the industry, expand its reach to more renowned and high-quality clients, and enhance its industry visibility and influence.

Looking ahead, Zhongsu noted that it will fully utilize the experience and industry resources accumulated over years of deep engagement in the modified plastics sector. It plans to align with downstream application trends and expand into innovative fields such as robotics and the low-altitude economy. At the same time, the company will continue to prioritize technological innovation and R&D investment, effectively driving continuous product innovation and upgrades, accelerating the import substitution of advanced new materials, and realizing its vision of becoming a world-class new materials enterprise.