On August 29, Global New Materials International (6616.HK) released its financial performance report for the first half of 2024. During the reporting period, the company achieved a revenue of approximately 775 million yuan, a year-on-year increase of 66.8%; gross profit was about 388 million yuan, a year-on-year increase of 72.8%; and net profit reached 144.5 million yuan, a 52.7% increase compared to the same period last year. In addition, the gross margin in the first half of the year increased by 1.7 percentage points year-on-year to 50.1%, once again rising above the 50% mark, and continues to maintain the high gross profit level that the company has maintained in recent years in the high-end pearlescent effect materials sector. Furthermore, despite the slight decrease in the company’s net profit margin from 20.4% in the first half of 2023 to 18.7%, the overall financial performance of the company remains robust, highlighting the company’s core competitiveness in the high-end pearlescent effect materials market.
High-End Pearlescent Effect Materials Business Leads the Market, R&D Innovation Achieves Outstanding Results
In recent years, Global New Materials International has been continuously advancing the implementation of its core strategy of “internal development and external expansion,” solidifying its position as a global leader in pearlescent effect materials. In the first half of 2024, the company’s sales of pearlescent pigment products reached 701 million yuan, accounting for 90.5% of total revenue, and achieved significant growth compared to the same period last year. This growth is mainly attributed to the company’s continuous investment and technological innovation in the high-end product sector, especially the launch and market promotion of the new series of pearlescent pigments.
Additionally, in recent years, the company has been continuously increasing its investment in research and development. In the first half of 2024, R&D expenditures reached 34.138 million yuan, a year-on-year increase of over 40%. These investments have not only brought the company multiple new high-end series of pearlescent effect materials products but have also further enhanced the company’s technological barriers. Notably, the company held its 2024 Spring “Colorful Renewal” new product launch in the first half of the year, with the theme of “Technology, Fashion, and Environmental Protection.” The launch successfully introduced 5 series of new products and 10 annual popular colors, and showcased 5 major series of new products and technologies that lead the industry development trends, including “Titanium-free Series of Pearlescent Pigments,” “Iron-based Matte Color-Changing Dragon Pearlescent Pigments,” “Automotive Grade Pearlescent Pigments,” “Solar Panel Special Pearlescent Pigments,” and “High-End Flake Aluminum Oxide.” The products cover fields such as automotive, cosmetics, industrial, and new energy, providing customers and partners with a diversified range of color solutions, demonstrating the company’s innovative strength and product features. Subsequently, these products received positive feedback in the market and were exhibited at several international industry exhibitions, attracting widespread attention. From market feedback, the company’s high-end pearlescent effect materials have been highly recognized in the automotive and cosmetics sectors. In particular, in the first half of the year, the revenue from synthetic mica-based pearlescent pigment products increased by more than 46% to 269 million yuan compared to the same period last year. Synthetic mica-based materials, as a preferred material for high-end pearlescent effect materials products, have shown a strong market demand for high-performance, environmentally friendly materials with a significant increase in sales volume in the first half of the year. The company’s technological innovation has not only met this demand but has also further strengthened its leadership position in the high-end pearlescent effect materials market.
Data sourced from the company’s announcements.
Deepening Integration of South Korean CQV Acquisition, and the Initial Success of the External Expansion Strategy
In the second half of 2023, Global New Materials International successfully completed the acquisition of CQV, a well-known pearlescent materials manufacturer in South Korea, and entered the integration phase. This acquisition not only strengthened the company’s global market layout but also brought multiple synergistic effects to the company. As a leading enterprise in the field of high-end pearlescent effect materials globally, CQV’s strong technology and market influence in the fields of automotive-grade pearlescent materials and cosmetic-grade products have brought important strategic resources to Global New Materials International.
After the completion of the acquisition, the company quickly launched the integration work with South Korean CQV, focusing mainly on key areas such as product research and development, market sales, and supply chain management. In the first half of 2024, through in-depth collaboration with CQV, Global New Materials International further consolidated its leading position in the global high-end pearlescent pigments market. According to financial reports, in the first half of the year, South Korean CQV achieved a total revenue of 30.684 billion won (approximately 164 million RMB), a year-on-year increase of over 30% compared to 2023; the most impressive performance was in net profit, which exceeded 5.1 billion won (approximately 27 million RMB) in the first half of the year, a significant year-on-year increase of 490%. This means that South Korean CQV has made a significant contribution to the performance of Global New Materials International in the first half of the year, both in terms of revenue and net profit, which has also significantly increased Global New Materials International’s market share in the Asia-Pacific region.
Additionally, the acquisition of South Korean CQV has provided strong support for Global New Materials International in terms of technological research and development. CQV possesses extensive R&D experience and advanced production facilities, and the successful integration of these resources into Global New Materials International’s global R&D system has enhanced the company’s innovation capabilities and product competitiveness. Through the collaboration between the two parties, the company has been able to launch more innovative products to meet the needs of different markets worldwide. The merger and integration of CQV signify a further deepening of Global New Materials International’s external expansion strategy. This acquisition has not only broadened the company’s product line but also enhanced its competitiveness in the international market, especially in South Korea and other Asia-Pacific markets. During the integration process, the cooperation between the two parties in supply chain and technological research and development has brought significant cost benefits and technological advantages to the company.
Capacity Expansion Steadily Advances with Market Demand, Enhancing Competitiveness in High-End Markets
To address the growing global demand for high-end pearlescent effect materials, Global New Materials International has taken proactive measures in capacity expansion. The company’s Phase II project of the Seven Colors Pearlescent Pigment in Guangxi has been successfully completed and put into operation, with an annual production capacity of 30,000 tons. The smooth operation of the Phase II factory and the initiation of new projects not only help the company strengthen its competitiveness in the domestic market but also provide strong support for its global expansion. This additional capacity will not only significantly improve the company’s supply capabilities for high-end pearlescent effect materials but also help the company better meet the needs of domestic and international customers.
Deeply Cultivating the Surface Performance Materials Industry
In the first half of 2024, Global New Materials International has delivered an outstanding report card, and we have reason to anticipate an even more exciting and complete performance. The management of Global New Materials International has indicated that in the second half of the year, the company will continue to focus on the research and development of high-end pearlescent materials products and market development, further consolidating its position as a leading global surface performance materials enterprise. The company plans to integrate the newly acquired global surface solutions business, deeply cultivate the surface performance materials industry, and further enhance its influence in the global market. It will also continue to steadily advance the strategy of “focusing on both internal development and external expansion,” laying a solid foundation for continuous growth in the future.
Media ContactCompany Name: GLOBAL NEW MATERIAL INTERNATIONALHOLDINGS LIMITEDContact Person: Vivian WuEmail: Send EmailPhone: +852 66887960City: HongkongCountry: ChinaWebsite: www.chesir.com
