List Announcement | Frost & Sullivan Supports Shandong Baogai Advanced Materials Technology Co., Ltd. in Successfully Listing in Hong Kong (8090.HK)

Shandong Baogai New Material Technology Co., Ltd. (hereinafter referred to as “Baogai New Materials”) successfully listed on the stock market on July 8, 2026. The company plans to issue 14.47 million H shares, 90% of which will be offered to international investors and 10% to public offerings. The highest offering price per share is HK$8.51, raising approximately HK$84.3 million in funds.

During this listing process, Frost & Sullivan performed the following key tasks: helping the issuer accurately and objectively understand its position in the target market, using objective market data to identify, support, and highlight the issuer’s competitive advantages, assisting the issuer, investment banks, and other intermediaries in preparing important sections of the prospectus such as overview, competitive advantages and strategy, industry overview, and business sections, and helping the issuer communicate with the Exchange and investors to enable investors to quickly understand the market ecosystem and competitive landscape, as well as assisting the issuer in responding to various questions regarding the industry from the Exchange.

Frost & Sullivan has always been a leader in helping companies list on the Hong Kong stock market. According to LiveReport Big Data (data as of June 30, 2026), over the past 36 months and 12 months, and from January to June 2026, Frost & Sullivan provided listing industry consulting services for 212 (market share: 69%), 111 (market share: 71%), and 58 (market share: 69%) Hong Kong IPO companies, ranking first in terms of number of services provided. It possesses rich industry experience and communication skills with regulatory authorities, exchanges, investment institutions, and related organizations.

• The company is ranked first in the Chinese composite material cable trench cover plate industry;

• The company has obtained 69 core patents and plays a leading role in industry standardization;

• The company strategically expands the application of composite materials into high-value areas;

• The company’s products have been used in landmark infrastructure development;

• The company always prioritizes technological innovation and excellent quality, continuously improving the performance and manufacturing processes of composite materials;

• The company’s internal mold manufacturing has standardized automated production lines and quality control.

According to Frost & Sullivan reports, based on 2025 revenue, the company:

• ranked first in both the Chinese composite material cable trench cover plate industry and the cable trench cover plate industry;

• ranked third in the Chinese trench cover plate industry.

Trench cover plates are protective covers used for ground pipes, cable trenches, and utility pipe wells, designed to ensure safety, distribute loads, and provide environmental durability. They include cable trench cover plates, water ditch cover plates, manhole covers, and others. According to Frost & Sullivan reports, between 2021 and 2025, the market size of China’s trench cover plate industry increased steadily from RMB 9.03 billion to RMB 99.6 billion, with a compound annual growth rate of 2.5%. Among them, the cable trench cover plate segment had a higher growth rate than the industry average, with a compound annual growth rate of 3.5%. It is expected that the market size will continue to grow and reach RMB 11.72 billion by 2030, with a compound annual growth rate of 3.2%. All segments will maintain stable growth rates, with cable trench cover plates having the highest growth rate, at a compound annual growth rate of 4.6%.

From 2021 to 2025, the market size of China’s cable trench cover plate industry will increase steadily from RMB 3.62 billion to RMB 4.15 billion, with a year-on-year compound growth rate of 3.5%. During this period, concrete cable trench cover plates will account for the largest market share, while composite material cable trench cover plates (including SMC and BMC) will have a higher growth rate than the industry overall. Among them,SMCThe market size of cable trench cover plates increased from RMB 530 million to RMB 680 million, with a compound annual growth rate of 6.4%; the market size of BMC cable trench cover plates increased from RMB 360 million to RMB 450 million, with a compound annual growth rate of 5.7%. Looking ahead, it is expected that by 2030, the market size will reach RMB 5.22 billion, with a compound annual growth rate of 4.7%. As the market matures and the application of composite materials becomes more widespread, the market share of composite cover plates will gradually increase. It is expected that the market size of SMC cable trench cover plates will reach RMB 1.04 billion by 2030, with a compound annual growth rate of 8.9%; the market size of BMC cable cover plates will increase to RMB 660 million by 2030, with a compound annual growth rate of 8.0%.

Composite materials refer to material systems formed by combining two or more different physical, chemical, or mechanical properties components through specific manufacturing processes, thereby enhancing overall performance at a macro level. Composite materials typically consist of reinforcing materials such as glass fiber, carbon fiber, and aramid fibers, and matrix materials such as resins, metals, or ceramics. In 2021, the market size of China’s composite material industry was RMB 242.7 billion, and it is expected to expand to RMB 285.2 billion by 2025, with a compound annual growth rate of 4.1%. By 2030, the market size of China’s composite material industry is expected to reach RMB 355.3 billion, with a compound annual growth rate of 4.5% from 2025 to 2030.

According to Frost & Sullivan reports, based on 2025 revenue, our group is the largest cable trench cover plate manufacturer in China, accounting for a market share of 2.43%.

According to Frost & Sullivan reports, based on 2025 revenue, our group is the largest composite material cable trench cover plate manufacturer in China, accounting for a market share of 8.91%.

China’s continuous investment in infrastructure provides a solid foundation for the expansion of the trench cover plate industry, driving demand for high-durability, high-load-bearing, and strong corrosion-resistant products. The National Development and Reform Commission has listed the renovation of urban underground pipelines as a key task,“14th Five-Year Plan” further sets a goal to renovate 170,000 kilometers of old pipelines, with total investment exceeding RMB 500 billion, accelerating the replacement of traditional cast iron and concrete cover plates with advanced composite material solutions. At the local level, Shenzhen included 798 major projects in its 2025 major project plan, with an annual investment of approximately RMB 307.6 billion, much of which is directed toward urban infrastructure and rail transit upgrades. With the support of public sector financial channels such as special bonds, stricter technical standards for load-bearing capacity and corrosion resistance have been established, creating strong procurement demand for high-quality cover plates; manufacturers who can meet these strict policy requirements will benefit directly.

Industrial modernization and digital infrastructure construction further enhance the market demand for cable trench cover plates. The country is vigorously promoting “new infrastructure” and “intelligent manufacturing,” leading to increased demand for anti-static andelectrical insulationspecialized facilities for trench cover plates. For example, according to the “2025 Telecommunications Industry Statistical Bulletin” issued by the Ministry of Industry and Information Technology, by the end of 2025, China had built approximately 4.84 million 5G base stations, an increase of over 760,000 compared to the previous year, further solidifying its position as the world’s largest 5G network infrastructure. These planning projects create high demand for composite cover plates. Additionally, in industrial sectors such as chemical plants and semiconductor manufacturing, customized trench cover plate designs are increasingly needed to meet specific load levels and resist strong corrosive chemicals.

The application of composite materials in trench cover plate production has become a key catalyst for industry transformation. Composite materials are typically composed of polymers and fibers, among which glass fiber materials dominate (cost factors such as carbon fiber composites can be ignored). Compared to traditional materials like cast iron and concrete, they have significant advantages. These materials are lighter in weight, easier to transport and install, and possess excellent corrosion resistance, making them suitable for harsh environments such as coastal areas and sewage treatment systems. Their strength and durability can be customized according to specific engineering requirements, showing high adaptability. Moreover, most composite materials support environmentally sustainable production methods and can incorporate recycled material components, which aligns with national ecological construction goals (such as the “14th Circular Economy Development Plan”). This innovation is driving manufacturers to increase research and development investment and improve industry technical capabilities.

Smart application. The integration of smart technologies has become the main driver of innovation in China’s trench cover plate industry. Smart trench cover plates equipped with sensors, NB-IoT communication modules, and monitoring systems can real-time track structural integrity indicators, including temperature, water level, and abnormal displacement changes. This function enables preventive maintenance and operational fault early warning. For example, in urban drainage systems, smart trench cover plates transmit data vialow-power wide area networkand can automatically send alerts to the municipal management platform once abnormal water levels or blockages are detected, significantly improving operational efficiency. This technological evolution aligns with modern urban governance goals and creates new market opportunities for manufacturers specializing in smart trench cover plates.

The Chinese trench cover plate industry is transitioning toward intelligent infrastructure solutions. Based on early adoption of smart trench cover plates, future development will focus on deep integration with urban digital twins and AI-driven infrastructure management systems. This means that trench cover plates will not only have data collection functions but also interact with broader urban systems to support dynamic traffic management, predictive flood response, and integration with smart grids or utility networks. This evolution marks a shift from isolated “smart” components to fully embedded infrastructure intelligence.

Material innovation is laying the foundation for a new generation of trench cover plates. The development of advanced composite materials increasingly emphasizes multifunctionality, combining lightweight structures, high strength, flame resistance, and chemical resistance. Research is focusing onthermoplastic composite materials, which offer better recyclability and ease of processing. For example, composites based on polyether ether ketone (PEEK) and polyphenylene sulfide (PPS) are widely used to achieve excellent mechanical strength and environmental tolerance.

Green transition is another major trend, emphasizing environmentally responsible design and materials. To meet national carbon reduction targets (such as the “Carbon Peaking Action Plan before 2030”), manufacturers are shifting to low-carbon, recyclable materials (such as recycled fibers and bio-based resins). Compared to cast iron or concrete, these materials significantly reduce life cycle emissions and support circular manufacturing processes. For example, some producers now offer cover plates made from recycled glass fiber composites, meeting green building certification requirements while maintaining structural strength. Additionally, manufacturing processes are continuously being optimized to minimize energy consumption and waste. Sustainable development is becoming a differentiating competitive advantage. Future trench cover plate solutions will tend to adopt closed-loop material recycling models, fully utilizing recycled composite materials and low-carbon manufacturing technologies. Life Cycle Assessment (LCA) and Environmental Product Declaration (EPD) are becoming important criteria for infrastructure project procurement. Leading manufacturers will use green design principles to not only meet national carbon neutrality goals but also establish competitive advantages in high-standard global markets such as eco-industrial parks and smart transportation hubs.

From a materials science perspective, manufacturers must master the correct formulations of fiber-reinforced materials and polymer matrices to achieve required performance levels, such as load-bearing strength, durability, UV resistance, and chemical resistance. In terms of production processes, techniques such as compression molding, extrusion molding, or manual lamination require precise control of temperature, pressure, curing cycles, and mold design. Even minor deviations may lead to internal voids, cracks, or delamination, resulting in non-compliant products. Additionally, different application scenarios—from municipal roads and utility corridors to hazardous chemical areas—require different structural designs, prompting enterprises to develop customized engineering solutions. High-end customers usually require third-party testing of load-bearing performance, fire resistance, and aging resistance, adding another layer of technical requirements. Therefore, companies lacking strong material engineering, process control, and structural design capabilities will find it extremely difficult to produce certified, mass-produced, and durable products.

Although the unit price of individual cover plates is relatively low, the overall capital barrier to entering the market is high due to equipment investment, mold development, inventory management, and long payment cycles. For example, producing composite material trench cover plates typically requires substantial capital investment in industrial hydraulic presses, high-temperature molds, glass fiber cutters, and resin injection systems, with initial setup costs usually ranging from RMB 2 million to 5 million, depending on capacity and automation level. Furthermore, due to the variety of cover plate sizes, load levels, and regional standards, enterprises need to develop and maintain multiple custom molds, increasing costs significantly. Financially, most customers are public sector entities, and the payment cycle from purchase to payment usually lasts 3 to 12 months, putting pressure on working capital. Manufacturers also need to hold safety inventory to meet urgent orders. Additionally, integrated production models that combine automated precision manufacturing with internal mold manufacturing require substantial capital investment and expertise, creating significant operational obstacles for potential new entrants.

As a key component of public infrastructure, trench cover plates must meet strict national and industry standards to ensure safety and reliability. In China, products must comply with standards such as GB/T 23858-2009, which covers multiple technical requirements including compressive strength, impact resistance, slip resistance, and flame resistance. To obtain procurement qualifications for public or municipal projects, third-party test reports are usually required. Moreover, most large customers require manufacturers to have ISO 9001 quality management system certification, and some projects require ISO 14001 environmental management system certification or industry-specific access permits. In certain regions or industries (such as power, water supply, and communications), only manufacturers listed on government procurement platforms or approved supplier lists can participate in bidding. If sufficient product testing and registration procedures are not completed, new entrants may be excluded from the mainstream market through administrative measures. Compliance approvals and certifications thus serve as substantial barriers, protecting existing enterprises with long-term qualifications while restricting new entrants.

Customer resources represent the most strategic and defensive barrier to entry in the trench cover plate industry. Major customer groups include municipal construction departments, public utility companies, infrastructure contractors, and state-owned enterprises. Many large projects also involve customized design, technical collaboration, and post-delivery maintenance, further strengthening the partnership between buyers and sellers. New entrants without reference projects, local government resources, or after-sales support teams will find it extremely difficult to obtain contracts. In highly sensitive areas such as busy roads and urban pedestrian zones, brand reputation and risk avoidance awareness are crucial, further solidifying the advantages of existing enterprises. Therefore, the customer resource barrier creates a network lock-in effect, and without continuous investment and relationship building, it is difficult to break through.