Good News on Listing | Frost & Sullivan Assists Global New Materials International Holdings Limited to Successfully List in Hong Kong (6616.HK)

Global New Materials International Holdings Limited (hereinafter referred to as 'Global New Materials') successfully listed on July 16, 2021, with a global issuance of 290 million shares at a tender price of HK$3.25, raising approximately HK$879 million. Frost & Sullivan (Frost & Sullivan, hereinafter referred to as 'Frost & Sullivan') provides exclusive industry advisory services for Global New Materials' listing, and hereby warmly congratulate them on their successful listing.

During the process of listing in Hong Kong, Frost & Sullivan mainly undertook the following tasks: helping the company accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the company's competitive advantages, assisting the company, investment banks, and other intermediaries in completing the relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important sections), assisting the company in communicating with the Hong Kong Stock Exchange and investors, helping investors quickly understand the market ecosystem and competitive landscape, and assisting the company in completing feedback on various industry-related issues from the Hong Kong Stock Exchange.

According to Frost & Sullivan's report, in recent years, the global pearlescent materials market has shown a steady upward trend. From 2016 to 2020, the global pearlescent materials market size reached RMB18.94 billion, with an average annual compound growth rate of 19.2%. With consumption upgrading, pearlescent materials will gradually replace other materials. Frost & Sullivan predicts that the market size will reach RMB44.64 billion by 2025. In the future, with an increase in people's awareness and acceptance of synthetic mica-based pearlescent materials, as well as an improvement in consumption levels, synthetic mica pearlescent materials will be applied in various application fields, and market share will continue to grow. From 2016 to 2020, its market share increased from 5.3% to 11.7%. Driven by technological and production improvements, the market share of synthetic mica pearlescent materials will reach 23.6% by 2025.

According to Frost & Sullivan's report, calculated by sales, the breakdown of the main downstream application fields in 2020 was as follows from largest to smallest: (i) coatings, (ii) plastics, (iii) cosmetics, (iv) inks, (v) automotive. Thanks to increased automobile production and ownership, as well as the development of new products, the application of pearlescent materials in the automotive field has increased, with an average annual compound growth rate of 46.9% from 2016 to 2020. In the cosmetics field, due to increased disposable income and consumption upgrading, people's awareness and requirements for external appearance have been continuously improving, driving a stable growth in the scale of pearlescent materials in the cosmetics field, with an average annual compound growth rate of 19.5% from 2016 to 2020.

As one of the important components of the global pearlescent materials market, the Chinese pearlescent materials market has grown rapidly. From 2016 to 2020, it increased from RMB2.06 billion to RMB4.84 billion, with an average annual compound growth rate of 23.9%. The market share of Chinese pearlescent materials increased from 21.9% in 2016 to 25.6% in 2020, and is expected to reach 31.7% by 2025. In 2020, the market for synthetic mica-based pearlescent materials in China was RMB770 million, with an average annual compound growth rate of 46.6% from 2016 to 2020. From 2021 to 2025, the market for synthetic mica-based pearlescent materials in China will still maintain high growth, with an expected market size reaching RMB46.2 billion by 2025.

Thanks to improvements in synthetic mica technology and pearlescent materials-related production processes, the Chinese automotive-grade pearlescent materials market has grown the fastest among all downstream application fields. From 2016 to 2020, it had an average annual compound growth rate of 48.6%, reaching RMB320 million in 2020. It is expected that with the improvement of people's living standards, consumption levels, and the number of cars per capita, the market size for automotive-grade pearlescent materials in China will reach RMB1.7 billion by 2025.

According to Frost & Sullivan's report, the global pearlescent materials market has a moderate concentration. As of 2020, by revenue, the total market size of pearlescent materials was RMB18.94 billion. In 2020, the top five global manufacturers accounted for 36.5% of the overall pearlescent materials market share. Among global participants, Global New Materials ranked fourth with a market share of 3.0%.

In 2020, the market size of Chinese pearlescent materials (calculated by pearlescent material revenue) reached RMB4.84 billion. In terms of total volume, the market share of the top five manufacturers in the Chinese pearlescent materials market accounted for 33.8% of the total. Among all companies, Global New Materials ranked first with a market share of 11.0%.

Frost & Sullivan has rich research experience in the chemical and materials industries, assisting well-known enterprises to successfully list on the capital market. Successful listing cases include Far East 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), Migu Technology (8349.HK), Huajin International (2738.HK), Floyte Glass (6865.HK), Caike Chemicals (1986.HK), Chang'an Renheng (8139.HK).