Good News on Listing | Frost & Sullivan Congratulates Anhui Qiangbang New Materials Co., Ltd. on Successfully Listing on the Main Board of the Shenzhen Stock Exchange (001279.SZ)

Anhui Qiangbang New Materials Co., Ltd. (hereinafter referred to as "Qiangbang New Materials") successfully listed on October 11, 2024, with an issued share amount of 40 million shares and an issue price of 9.68 yuan per share.

• The company has formed a relatively complete printing plate system covering thermal CTP plates, UV-CTP plates, non-processed plates, photosensitive resin flexographic plates, and PS plates; it has accumulated rich technical knowledge in the formulation and ratio of chemical reagents for each stage of printing plate production, as well as in process control such as electrolysis, hole sealing, and coating. It has mastered the production processes and core technologies of major products and holds 86 patents, including 29 invention patents.

   

• The company has established a wide-ranging sales network and a complete dealer system, with more than 200 dealer customers covering 28 provinces, municipalities directly under the Central Government, and autonomous regions across the country. At the same time, the company's products are sold to more than 60 countries and regions including Germany, France, Spain, Italy, Turkey, South Korea, etc.

   

• The company has become one of the largest printing plate manufacturers in China, with a total of 7 offset printing plate production lines and an annual production capacity of 80 million square meters of offset printing plates.

   

• The company has a management and technical team with rich experience and a deep understanding of the printing plate industry and market.

Frost & Sullivan's Long-term FocusGlobal andChinese printing plate industryhas released a large number of research reports, which are widely cited in the prospectuses of leadinglisted companies on the Shenzhen Stock Exchange, helping customers accelerate growth.

Printing plates refer to physical carriers used to record and transmit graphic and text information during the printing process and are an important printing consumable. The upstream of the printing plate industry is raw material suppliers, including chemical raw material producers such as aluminum coils, acids and alkalis, liner paper, packaging materials, photosensitive materials, etc., among which aluminum coils are the main raw material for printing plates. The midstream is printing plate manufacturers. According to different printing processes, printing plates are divided into offset printing plates and flexographic plates. Offset printing plates are further divided into CTP plates (Computer-To-Plate) and PS plates (Polystyrene Plate) according to different imaging technologies. The main sales models of printing plate manufacturers include distribution models and direct sales models. The downstream application fields are mainly the printing industry, including printed products such as books, periodicals, newspapers, commercial advertisements, labels, and packaging.

Source: Frost & Sullivan Report

From 2020 to 2022, the market size of European printing plates increased from $580.681 million to $946.452 million in terms of sales volume. During this period, European economic activities quickly recovered after the pandemic, and the demand for printing plates in the printing industry increased significantly. At the same time, European printing plate manufacturers such as Epson raised the selling prices of printing plates to make up for the significant cost increases in raw materials, logistics, energy, and labor. Therefore, the market size of European printing plates increased significantly during the period from 2020 to 2022, with an annual compound growth rate of about 27.7%.

As the demand for printing plates in the European market gradually stabilized after the rapid rebound after the pandemic and affected by factors such as global inflation, the growth rate of the European printing plate market size will gradually slow down in the future, and it is expected to reach $1624,995 million in 2027, with an annual compound growth rate of about 11.4% from 2022 to 2027.

Source: Frost & Sullivan Report

In terms of import volume of offset printing plates, China, Japan, and the United States are the top three importers of European printing plates. In 2022, the import volume proportions of European printing plates from China, Japan, and the United States were 62.9%, 17.0%, and 13.4% respectively.

China is the largest importer of European printing plates, with the proportion of imports from China exceeding 50% for three consecutive years. In 2021, as the pandemic gradually recovered, the demand for European printing plates in the market quickly revived, and at the same time, the export scale of leading enterprises in the Chinese printing plate industry increased significantly, resulting in a significant increase in the proportion of imports from China to the European printing plate market in 2021, rising to 70.1%. With the continuous development of Chinese printing plate technology and the continuous improvement of product quality, it is expected that the proportion of imports from China to the European printing plate market will further increase in the future.

Source: Frost & Sullivan Report

• Environmental Protection Empowers Green Printing PlatesAmong traditional printing plates, the use of ink and solvents can cause certain environmental pollution. In recent years, governments in China, Europe, and Spain have attached increasing importance to environmental protection policies. For example, in June 2019, the Ministry of Ecology and Environment issued the "Comprehensive Treatment Plan for Volatile Organic Compounds in Key Industries", listing packaging printing as one of the key industries; in December 2019, the European Commission issued the "European Green Deal" to prevent non-environmentally friendly products from entering the EU market. At the same time, consumers' awareness of environmental protection in various countries is also gradually increasing. They tend to choose products with environmentally friendly material printing for packaging, which is not only beneficial to health but also contributes to environmental protection. Therefore, printing plate manufacturers are gradually transforming into environmentally friendly printing plate products, such as investing in the production of non-rinseable offset printing plates, flexographic plates and other more environmentally friendly products. Flexographic plates will also become one of the development trends of printing plates in the future due to their environmental friendliness.

   

• Globalized Supply ChainAfter the pandemic, the globalization process entered an adjustment period, showing new characteristics of regional cooperation. This new characteristic can promote deeper cooperation among printing plate enterprises in various countries. Printing plate enterprises can find high-quality and low-cost raw material suppliers globally, thereby reducing costs and improving production efficiency. At the same time, the globalization supply chain can disperse supply risks, reducing the dependence of printing plate manufacturers on a certain market or supplier and improving the stability of enterprises in the face of raw material price fluctuations.

   

• Industrial Chain IntegrationWith the continuous development of the business of printing plate enterprises and the accumulation of certain capital reserves, integrating upstream and downstream of the industrial chain to cope with the risk of raw material price fluctuations is a possible development trend in the industry. In the printing plate industry, raw materials such as aluminum coils and photosensitive materials account for most of the production costs. Through industrial chain integration, if enterprises can control the supply of raw materials, they will have a greater advantage in cost control. In addition, through industrial chain integration, enterprises can integrate printing plate production and printing service industries, so that they can respond more quickly when market demand changes. For example, if there is a demand for new environmentally friendly printing plates in the market, integrated enterprises can carry out research and development and production more quickly to seize the market opportunity.

Frost & Sullivan has rich research experience in the chemical and materials industries and has assisted well-known enterprises to successfully list on the capital market. Successful listing cases include: Migro Group (9879.HK), Jihai Resources (2489.HK), Zhongbao New Materials (2439.HK), Shengneng Group (2459.HK), Jinli Yongci (6680.HK), Avia Avian (IDX: AVIA), Global New Materials (6616.HK), Dafeng Equipment (2153.HK), Yihai International (8659.HK), GHW (9933.HK), Sanhe Fine Chemicals (0301.HK), Xingyu Holdings (2346.HK), Xinghe Holdings (1891.HK), Xuyang Group (1907.HK), Long Resources (1712.HK), Shandong Gold (1787.HK), Henan Jinma (6885.HK), Xingye New Materials (8073.HK), Dongguang Chemicals (1702.HK), Zhongqi Group (1932.HK), Xinbang Holdings (1571.HK), Meigu Technology (8349.HK), Huajin International (2738.HK), Fult Technology Glass (6865.HK), Dinos (1452.HK), Caike Chemicals (1986.HK), Chang'an Renheng (8139.HK), Sansida (1337.TWSE), Born NYSE, CPC NYSE, Gu Shan Group (GU NYSE), Tianhe Chemicals (1619.HK), Yihua Holdings (2121.HK), Sijia Group (1863.HK), etc.