Good News on Listing | Frost & Sullivan Assists Anhui Jinyan Kaolin New Materials Co., Ltd. to Successfully Go Public in Hong Kong (2693.HK)

Anhui Jinyan Kaolin New Materials Co., Ltd. (hereinafter referred to as 'Jinyan Kaolin New Materials') successfully went public on December 3, 2025. The company plans to issue 2,430,000 H shares, of which 90% will be international offerings and 10% will be public offerings. The maximum offering price per share is HK$7.30.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, 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 chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport big data (statistical data as of September 30, 2025), from January to September 2025, as well as during the past 12 and 36 months, Frost & Sullivan provided listing industry advisory services for 47 (market share of 72%), 62 (market share of 69%), and 162 (market share of 70%) Hong Kong-listed IPOs respectively, ranking first in terms of number. It has rich industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and various related agencies.

• Based on the revenue from mullite materials for precision casting in 2024, Jin Yan High-tech is the largest producer of mullite materials for precision casting in China.

   

• Based on the revenue from kaolin products in 2024, Jinyan High-tech is the fifth-largest producer of coal-series kaolin in China.

   

• Since 2021, the company has wholly owned the Shouli Kaolin Mine located in Huaibei City, Anhui Province, which is famous for its rich coal-series kaolin resources.

   

• The refractoriness, hardness, and chemical stability of the company's kaolin ore are higher than the industry average, making it suitable for producing mullite materials for precision casting and refractory applications.

Kaolin is a type of non-metallic clay and clay rock mainly composed of kaolinite minerals, also known as white clay due to its white color and fine texture. Kaolin ore can generally be divided into hard kaolin, soft kaolin, and sandy kaolin based on physicochemical properties. Among them, sandy kaolin accounts for the largest proportion of total reserves, while hard kaolin occupies the smallest proportion. According to geological origins, kaolin can be divided into coal-series kaolin and non-coal-series kaolin. Coal-series kaolin has special physicochemical properties such as high purity, high chemical stability, and high refractoriness. Within the category of coal-series kaolin, it can be further subdivided into associated coal-series kaolin and associated coexisting coal-series kaolin. Associated coal-series kaolin coexists with other minerals, and the composition of other minerals contained therein fluctuates greatly and is difficult to separate, so separation and purification processes are required before deep processing. Associated coexisting coal-series kaolin, since they are found separately in the same ore deposit with other minerals such as coal mines, are relatively independent of each other. After mining and grading, it can directly enter the deep processing stage without the need for purification steps.

The upstream process mainly includes the mining and preliminary processing of kaolin ore. After the mining operation is completed, kaolin ore can be converted into raw coke and raw powder through preliminary beneficiation. The midstream participants are manufacturers of kaolin processing products, who process these products into mullite for precision casting and refractory mullite through calcination processes and sell them to downstream customers. For some midstream kaolin deep-processing manufacturing enterprises without their own mineral resources, they usually need to purchase raw coke and raw powder or coal by-product ore from enterprises with mineral resources as raw material sources for subsequent kaolin deep-processing products. Enterprises with high-quality kaolin mineral resources have resource advantages and can obtain high-quality kaolin raw materials at lower costs. The sales models of midstream kaolin deep-processing manufacturing enterprises include selling to end customers and selling to traders. Due to the wide and scattered downstream customer base, kaolin deep-processing manufacturers usually need to rely on traders to more effectively meet the diverse application needs and market demands of the downstream industry. Their downstream industrial chain covers a wide range, mainly involving application fields such as automotive, aviation, medical, general equipment, metallurgy, building materials industry, and others.

Driven by technological innovation, policy support, and global trade expansion, China's kaolin production is steadily increasing. From 2020 to 2024, China's kaolin production generally showed an upward trend, especially in 2022 and 2024 when the growth rate accelerated significantly. In 2021, with the introduction of China's '14th Five-Year Plan' for industrial green development, the enforcement of environmental regulations intensified, leading to increased compliance costs for enterprises and a slight decline in kaolin production. It is expected that by 2029, China's kaolin production will reach 10.4 million tons, with a compound annual growth rate of 5.4% from 2024 to 2029. As the application of kaolin in traditional and emerging high-end industries continues to grow, China's kaolin ore production will continue to increase.

Due to the wide variety of deep-processed kaolin products and their extensive downstream applications, the market for these products is steadily growing. The market for deep-processed kaolin products increased from RMB 8.21 billion in 2020 to RMB 10.16 billion in 2024. It is expected to reach RMB 14 billion in 2029, with a compound annual growth rate of 6.6%. The market for non-coal washing kaolin products by classification increased from RMB 4.2 billion in 2020 to RMB 5.19 billion in 2024, with a compound annual growth rate of 5.4%. This segment is expected to reach RMB 6.78 billion in 2029, with a compound annual growth rate of 5.5% from 2024 to 2029. The market for coal-fired calcined kaolin products in China increased from RMB 4 billion in 2020 to RMB 4.97 billion in 2024, with a compound annual growth rate of 5.5%. It is expected to reach RMB 72.2 billion in 2029, with a compound annual growth rate of 7.8% from 2024 to 2029. In the future, with the development of high-end manufacturing, the demand for high-performance materials is expected to increase, which raises the requirements for the physical and chemical properties of deep-processed kaolin products, such as high whiteness, refractoriness, and fineness. This trend will drive market demand for deep-processed kaolin products. In addition, deep-processed kaolin technology has made continuous progress. For example, the application of ultra-fine grinding, surface modification, and calcination technologies has improved the performance of kaolin, making it widely used in more fields, increasing the added value of products, and further driving market growth.

●Policy support and guidance roles are prominent

In recent years, China has successively introduced policies such as the 'Industrial Structure Adjustment Guidance Catalog (2024 Edition)', 'Catalog of Industries Encouraging Foreign Investment', and the '14th Five-Year Plan for the Development of Non-metallic Mineral Industries & Long-Range Objectives through the Year 2035'. These policies provide clear support for the comprehensive development and utilization of non-metallic minerals, vigorously promoting the progress and development of related downstream industries, including precision casting and refractory materials. At the same time, the 'Three-Year Action Plan for Promoting the High-Quality Development of Non-metallic Mineral Industries (2023-2025)' proposes that by 2025, the scale and economic benefits of the non-metallic mineral industry will continue to improve, with the total industry output value striving to reach 1.2 trillion yuan. It also proposes accelerating research and development efforts in key areas, including projects related to non-metallic minerals such as kaolin.

● The demand for high-end and deep-processed kaolin products continues to grow

With the increasing demand for high-performance materials in downstream fields such as precision casting, renewable energy, and new materials, the kaolin industry is expected to gradually shift from traditional low-value-added products to high-end deep-processing products. Calcined kaolin, due to its high whiteness, low iron content, and excellent thermal and physical properties, is expected to become a key direction for industry development. It is anticipated that its application in fields such as precision casting, renewable energy (such as building phase change thermal storage materials and solar thermal storage materials), and new materials will further expand.

● Standardization improvement in the kaolin processing industry

Due to the incomplete early industry regulations and weak corporate standardization awareness, the comprehensive utilization rate of resources in the kaolin processing industry is low, and the industry has not developed in an orderly manner. In recent years, under the guidance of policies and technological progress, the industry's standardization level has improved. The successive implementation of national standards such as 'Method for Determining the Dispersibility of Water Treatment Agents - Part 1: Dispersing Kaolin Method' and 'Mineral Resources - 'Three Rates' Indicators - Part 13: Clay Minerals' in 2024 have provided unified quality control and performance testing standards for kaolin processing enterprises, comprehensively improving the industry's standardization level and promoting the steady progress of kaolin processing enterprises on the path of high-quality development.

●The deep processing technology of kaolin is developing at an accelerated pace

With the continuous advancement of kaolin processing technology, its application scope is constantly expanding. Deep processing technologies for kaolin, including calcination, iron removal, grinding, and mixing, are improving the physical and chemical properties of the product. Improvements in whiteness, fineness, and plasticity help to enhance product quality and stability.

●Promote intelligent and automated production

With the widespread application of intelligent manufacturing technology, the production of kaolin is expected to gradually move towards greater automation and intelligence. By introducing advanced mining equipment, automated production lines, and intelligent management systems, enterprises can improve production efficiency, reduce costs, and optimize resource utilization. In addition, intelligent production will reduce manual intervention and enhance product stability and consistency.

● Strengthening environmental awareness promotes technological transformation

In 2020, China established the 'dual carbon goal' of achieving carbon peak by 2030 and carbon neutrality by 2060, aiming to enhance society's attention to environmental protection and sustainable development. With increasingly strict environmental regulations, the coal-based kaolin industry is undergoing reforms in mining and deep processing technologies. Enterprises are gradually introducing cleaner production technologies and actively exploring ways to recycle resources.

Based on the revenue from kaolin products in 2024, Jinyan High-tech is the fifth-largest producer of coal-series kaolin in China.

Kaolin mullite is one of the main deep-processed products from coal-series kaolin. During the calcination process, kaolin undergoes a series of physical and chemical changes. At high temperatures, dehydration and decomposition reactions occur. Subsequently, aluminum oxide and silicon dioxide in the kaolin react to form mullite crystal phases and transform into mullite. In precision casting, mullite materials are used for precision mold shells due to their refractory properties. These characteristics enable the molds to withstand the high temperatures during pouring and solidification processes. In addition, the stability of mullite helps maintain the shape and size of the cavity, which is significant for manufacturing high-quality and defect-free precision castings. The relevant properties make mullite materials particularly important in industries such as automotive, shipbuilding, medical, aviation, and energy. Most precision casting mullite materials are produced by calcining coal-series kaolin.

In 2024, the scale of China's precision casting market was RMB 381 billion. From 2020 to 2024, the compound annual growth rate was 8.7%. The growth of the national precision casting market is due to the increasing popularization of precision casting technology. The increasing popularity of precision casting benefits from its ability to meet the needs of high-end manufacturing, possessing technical advantages, and being able to integrate with emerging technologies as well as driven by industrial upgrading and policy support. Precision casting is widely used in industries such as automotive, aviation, and medical devices that have high requirements for part precision and performance. In the automotive industry, precision casting upgrades (especially the pursuit of lightweight and high-performance solutions) have increased the demand for precision casting components. Looking ahead, the automotive, aviation, and medical industries will drive the development of China's precision casting market in the coming years. It is expected that the compound annual growth rate from 2024 to 2029 will be 6.3%.

In 2024, the market size of mullite materials for precision casting in China is valued at RMB 970 million. More than 95% of the mullite materials used in the market are produced by calcining kaolin, with only a very small number made from bauxite and synthetic mullite. Since the calcination process of kaolin is mature and its performance stable, it is currently the mainstream method for producing mullite materials for precision casting. Mullite, due to its high-temperature stability and excellent corrosion resistance, enables castings to have compact dimensional structures and fine appearances in precision casting. Therefore, it is widely used in manufacturing precision parts and machine components for various industries, promoting the growth of the mullite market for precision casting. As the complexity, dimensional accuracy, and appearance quality of castings continue to improve, the demand for mullite in precision casting will grow rapidly, exceeding the growth rate of the precision casting market. It is expected that this market will grow to RMB 1.36 billion by 2029, with a compound annual growth rate of 7.0% during the forecast period.

● Industry development drives continuous demand growth

The development of industries such as automotive, healthcare, aviation, and energy has driven the growth of the mullite material market for precision casting. For example, the automotive industry has a huge demand for lightweight and high-performance precision cast components. The healthcare industry relies on precision-cast biocompatible parts. In the aviation and energy sectors, the demand for high-performance, heat-resistant components is increasing day by day. Kaolin mullite material has excellent thermal stability, low thermal expansion, and wear resistance, making it an essential material for manufacturing precision cast parts that can withstand high stress and harsh environments without degradation or deformation, thus promoting market growth.

● New opportunities created by technology integration

Technological innovation has created new opportunities for mullite materials in precision casting. For example, the integration of 3D printing with precision casting technology is particularly noteworthy. Wax molds printed from 3D printing can be directly used for casting, increasing design flexibility and making it possible to produce complex shapes. This integration has reduced production time and accelerated product release. As a result, the demand for high-quality mullite materials has risen because they are suitable for this new production method and ensure product quality and performance.

● Rapid development of complex precision casting

In the process of the vigorous development of modern industry, the structure of castings such as automobiles and aviation components is developing in an increasingly complex direction. Castings with complex structures usually have a larger surface area, which directly leads to a rapid increase in the use of kaolin mullite materials in shell molds for these castings. In addition, complex structures also place stricter requirements on dimensional accuracy and surface quality. As the application scope of these high-precision castings expands, the demand for mullite for precision casting will inevitably increase significantly, presenting significant growth opportunities.

●The advantages highlighted by mullite under strict environmental requirements

In the advancement of modern industry, environmental factors are becoming increasingly important, giving mullite materials a special advantage in the precision casting market. Strict global environmental regulations have led manufacturers to emphasize the environmental-friendly characteristics of materials. Kaolin-mullite materials can withstand chemical reactions with environmental substances during precision casting (where there are chemical emissions or corrosive exposures), avoiding harmful by-products and performance degradation. This reduces waste related to material damage or reaction. Therefore, for precision casting enterprises seeking cost reduction and sustainable growth, kaolin-mullite is an attractive choice.

Based on the revenue from mullite materials for precision casting in 2024, Jin Yan High-tech is the largest producer of mullite materials for precision casting in China.

Frost & Sullivan has extensive research experience in the chemical and materials industries and has assisted well-known enterprises in successfully listing on the capital market. Successful listings include: Purple Gold International (2259.HK), Jiaxin International (3858.HK), Nanshan Aluminum (2610.HK), Chifeng Gold (6693.HK), BYOU Group (9893.HK), Hailuo Materials Technology (2560.HK), Qiangbang New Materials (001279.SZ), Migao Group (9879.HK), Jihai Resources (2489.HK), Zhongbao New Materials (2439.HK), Shengneng Group (2459.HK), Jinli Yongcim (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 Glass (6865.HK), Dinos (1452.HK), Caike Chemicals (1986.HK), Chang'an Renheng (8139.HK), Sansida (1337.TWSE), Born NYSE, CPC NYSE, Gu NYSX, Tianhe Chemicals (1619.HK), Yihua Holdings (2121.HK), Sijia Group (1863.HK), etc.