Good News on Listing | Frost & Sullivan Assists Qingdao Guoen Technology Co., Ltd. in Successfully Going Public in Hong Kong (2769.HK)

Qingdao Guoen Technology Co., Ltd. (hereinafter referred to as 'Guoen Technology') successfully listed on February 4, 2026. The company plans to issue 30 million H shares, of which 90% will be international offerings and 10% will be public offerings. The maximum issue price per share is HK$42.0, raising approximately HK$1.26 billion in net proceeds.

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 writing of 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 providing assistance to the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data, from January to December 2025, and over the past 36 months, Frost & Sullivan provided listing industry advisory services for 82 (market share of 73%) and 180 (market share of 71%) Hong Kong-listed IPOs respectively, ranking first in terms of number of engagements, with rich industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and various related organizations.

• The company is a leading enterprise in organic polymer modified materials and composite materials in China;

   

• The company has been deeply involved in the chemical new materials industry for over two decades and is a leader in this rapidly growing sector in China;

   

• The company has integrated its layout across the upstream and downstream of organic polymer materials, successfully entering the upstream sector of green petrochemical new materials such as styrene, polystyrene (PS), expandable polystyrene (EPS), and polypropylene (PP);

   

• The company has connected the upstream and downstream of the gelatin industry, vertically extending its business from 'gelatin/collagen - hollow gelatin - end products (collagen + series)'.

According to the Frost & Sullivan report, by 2024, the company:

• An important participant in the chemical new materials industry, it is also the second-largest supplier of organic polymer modified materials and organic polymer composites in China;

   

• Possesses a production capacity of over 1 million tons of polystyrene (PS), ranking first in the domestic market;

   

• In China, the gelatin (bone gelatin) industry ranks second in production.

As a key component of new chemical materials, organic polymer modification technology is divided into two categories based on the ratio of main and auxiliary materials used for material modification: organic polymer modified materials and organic polymer composites. As downstream end-users become increasingly familiar with the application and processing of modified materials, their use has grown rapidly, far exceeding the overall growth rate of the polymer material market. The global market for organic polymer modified materials and composites grew from RMB 848.1 billion in 2020 to RMB 1,503.8 billion in 2024, with a compound annual growth rate of 15.4%. The high strength and light weight of organic polymer modified materials make them more widely applicable. From 2025 to 2029, it is predicted that the market will grow steadily at a compound annual growth rate of 12.6%, reaching RMB 2,680.8 billion by 2029. The market scale for organic polymer modified materials and composites in China rose from RMB 303.8 billion in 2020 to RMB 544.8 billion in 2024, with a compound annual growth rate of 15.7%. With the large-scale use of organic polymer modification and composites, it is expected that the Chinese market will maintain strong momentum. From 2025 to 2029, it will grow at a predicted compound annual growth rate of 14.1%, reaching RMB 1,037.5 billion by 2029.

From the application details of organic polymer modified materials and organic polymer composite materials in China, in 2024, due to the high applicability of these materials and composite materials, coupled with the strong demand and consumption environment in the household appliance industry, the household appliance industry contributed the most, accounting for about 38.2%. At the same time, benefiting from the rapid growth of the automotive market and increased demand for lightweight materials, 17.9% of organic polymer modified materials and composite materials are applied in the automotive industry. In addition, 7.8% of related materials are used in the electronics and electrical appliances industry, 6.9% in the office equipment industry, 2.7% in the power tool industry, and other fields account for 26.5%.

Gelatin is a white or light yellow, translucent, slightly glossy sheet or powder formed by the degradation of collagen from connective tissues such as animal skin, bones, and tendons. It has excellent physical and chemical properties and is fully biocompatible, with ample research support. It is widely used in industries such as medicine, health products, and food. The Chinese gelatin market expanded from RMB 6.5 billion in 2020 to RMB 8.2 billion in 2024, with a compound annual growth rate of 6.0%. In 2023, China's healthcare demand surged, directly driving a synchronous increase in gelatin demand. Under supply constraints, gelatin prices rose rapidly in the short term, significantly boosting the overall market size. Entering 2024, downstream demand slightly declined, and gelatin prices returned to rationality, resulting in a slight decline in the market size compared to the same period last year. With continuous growth in total demand, it is expected that the market growth rate will remain at a high level. Bone gelatin is characterized by low allergenicity and high biocompatibility, and its extensive use in high-value applications such as high-end capsules, hemostatic materials, and cosmetic products in medical and pharmaceutical fields will become the main driving force for market expansion. At the same time, the exploration of collagen in emerging fields such as new energy vehicles (such as electrolytic copper foil additives) is also gradually unfolding, providing diversified growth drivers. It is expected that from 2025 to 2029, the gelatin market size will grow at a compound annual growth rate of 8.9%, reaching RMB 125 billion by 2029.

According to a Frost & Sullivan report, the concentration of the polystyrene market in China is relatively high, with leading enterprises rapidly occupying market share through their massive production capacity. Based on production capacity for 2024, our company leads the Chinese market with an annual capacity of 1,000 kilotons per year, accounting for 13.0% of the Chinese market share and making us the largest polystyrene producer in China.

In the polymer materials industry, due to the similar downstream customer sectors and application scenarios for organic polymer modified materials and composite materials, the industry usually discusses their integration under a unified framework. The market concentration of organic polymer modified materials and composite materials in China is relatively low, with major upstream polymer material companies having some production capacity in this field. In terms of revenue in 2024, the top five companies together accounted for 10.6% of the market share. Our modification segment generated revenue of RMB 135 billion, accounting for 2.5% of the Chinese market and making us the second-largest producer by revenue. This revenue scale has a significant advantage over our competitors in the future.

Bone gelatin production requires advanced technology and is applied in high-value industries such as high-end medical care and beauty applications. The competitive landscape of bone gelatin is relatively concentrated. In the early stages of industry development, the high-end segment of the Chinese bone gelatin market was mainly dominated by foreign manufacturers. However, with continuous technological progress, the competitiveness of Chinese bone gelatin producers has gradually increased, making them mainstream participants and leading positions in the market.

●The rapid development of new energy vehicles has driven the demand for modified materials

The new energy passenger vehicle market in China has been growing rapidly, with annual sales increasing from 1.3 million units in 2020 to 12.9 million units in 2024, a compound annual growth rate of 77.5%, which is significant. It is estimated that from 2025 to 2029, the sales volume of the new energy passenger vehicle market in China will increase to 27.5 million units, with a compound annual growth rate of 16.4%. The organic polymer modified materials used in new energy vehicles have high added value. The rapidly growing new energy vehicle industry not only brings about a large demand for automotive parts but also drives strong demand for modified materials in supporting fields such as power batteries and charging infrastructure (such as charging piles). Benefiting from the growing demand for high-performance modified materials in the new energy vehicle industry, our company expects to achieve growth both in terms of sales volume and price.

●China's high-performance engineering plastics still require modification

China has made breakthroughs in some high-performance engineering plastic products, but the industry is still in a relatively early development stage. Compared with foreign companies, the technical foundation is still less mature, especially in terms of general-purpose products, where there is still a performance gap. Therefore, domestic engineering plastics usually need further modification to meet the performance requirements of customers. The trend towards domestic substitution of engineering plastics is expected to drive the continuous growth of our company's business.

●The improvement in the performance of degradable materials brings new growth opportunities

With the depletion of petroleum resources and the intensification of environmental problems, the development of biodegradable materials has become a global focus. However, biodegradable plastics are limited by their own physical and chemical properties, and the composite performance of single-component biodegradable plastics is usually insufficient. Therefore, modification is necessary to improve their performance, providing new growth opportunities for organic polymer modified materials. Compared to bio-based degradation materials, petroleum-based products offer new growth prospects due to the versatility of their raw materials and the process.

● Integrated upstream and downstream layout of organic polymer modified materials and composite materials

Currently, organic polymer material modification enterprises are showing a trend towards vertical integration across upstream and downstream industrial chains. Leading enterprises in organic polymer material modification are actively expanding upstream, leveraging their technological advantages to enhance the stability and controllability of bulk raw material supply for modified products. At the same time, expanding into downstream application fields allows them to reuse production experience and technological advantages, thereby providing more value-added comprehensive solutions to downstream customers and deepening customer relationships.

●Enterprises in organic polymer modification materials go global

With the acceleration of internationalization by downstream Chinese enterprises, overseas expansion of organic polymer material modification companies has become an important development direction. To deeply bind with customers and meet their efficient localized production needs, these companies follow clients to build localized R&D centers and production bases overseas. By adopting localization strategies, they can shorten the logistics radius and effectively improve product supply efficiency and response speed.

● Technological barriers

The core competitiveness of the organic polymer modification and organic polymer composite materials industry lies in product formula design and R&D capabilities. Enterprises must possess a certain level of high-level expertise in materials science and process engineering to develop products that meet diverse customer needs.

● Capital barriers

The organic polymer modification materials and organic polymer composite material industry requires a large amount of capital investment in stages such as technology development, product innovation, and production line expansion. From raw material procurement, equipment purchase to research and development investment, each link requires substantial financial resources.

● Scale Barriers

Compared to many other industries, the economies of scale in the organic polymer modification and organic polymer composite materials industry are very evident. Large-scale operations help enterprises reduce production costs, provide more competitive pricing, and enhance overall market competitiveness.

●Channel barriers

A strong sales network is crucial for the organic polymer modification materials and organic polymer composite materials industries. Downstream customers tend to prefer long-term cooperation with suppliers with a good reputation.