Listing Success | Frost & Sullivan Supports Binhua Group Co., Ltd. in Successful Listing in Hong Kong (6745.HK)

Binhua Group Co., Ltd. (hereinafter referred to as "Binhua Shares") was successfully listed on July 10, 2026. The company plans to issue 35,212.6 million H shares, with 90% intended for international offerings and 10% for public offerings. The highest offering price per share is HK$3.59, resulting in a net fundraising amount of approximately HK$1.26 billion.

During the process of listing in Hong Kong, 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 drafting important sections of the prospectus such as overview, competitive advantages and strategy, industry overview, and business, helping the issuer communicate with the Stock Exchange and investors, enabling investors to quickly understand the market ecosystem and competitive landscape, and assisting the issuer in responding to various questions regarding the industry from the Stock Exchange.

Frost & Sullivan has always been a leader in helping companies list in Hong Kong. According to LiveReport Big Data (statistical data as of June 30, 2026), in 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 a leading comprehensive chemical group in China, with several products holding the highest domestic market share, maintaining a strong position in the industry;

• The company features the world’s most advanced manufacturing technologies, and 15 self-developed or jointly developed technologies have been recognized as leading or advanced at home and abroad;

• The company is the first in China to completeGranulated AluminaProduct Carbon Footprint Certification;

• Thanks to its diversified and integrated product portfolio, all product chains work in deep collaboration;

• Its customers are leading enterprises in various downstream industries, including large alumina manufacturers, leading polyether companies, and top semiconductor producers;

• It is expected that by 2030, the sales revenue of China’s chlor-alkali chemical industry will reach RMB 420.1 billion, with a compound annual growth rate of 4.0%. According to Frost & Sullivan’s report, based on 2025 revenue:

According to Frost & Sullivan’s report, based on 2025 revenue:

• China’s largest trichloroethylene producer, accounting for 76.5% of the total domestic export volume of trichloroethylene, and a key indicator of trichloroethylene prices in the country;

• China’s largestChloropreneproducer;

• The largesttetrachloroethyleneproducer in China;

• the second largestepichloropropaneproducer in China;

• the second largestMTBEproducer in China;

• fifth among China’s semi-G5 hydrofluoric acid producers for electronic use.

The chlor-alkali industry is a basic raw material sector that produces caustic soda, chlorine, and hydrogen using salt and electricity. These primary products serve as bases for further chemical reactions, enabling the production of a wider range of chlor-alkali chemicals by adding other substances. Its products are widely used in chemicals, textiles, metallurgy, and pharmaceuticals, playing an important role in China’s economic development. The main products of the chlor-alkali industry include polyvinyl chloride (PVC), caustic soda, chloropropene, trichloroethylene, tetrachloroethylene, epichloropropane, propylene oxide (chlorine process), and others such as hydrogen, chlorine, and hydrogen peroxide.

In 2025, China’s chlor-alkali industry generated sales of 344.5 billion yuan, with a compound annual growth rate of -1.7% from 2021 to 2025. It is expected that by 2030, sales will reach 420.1 billion yuan, with a compound annual growth rate of 4.0%. PVC and caustic soda are the main products of the chlor-alkali industry. In 2025, by sales value, PVC and caustic soda accounted for 41.0% and 38.9% of the industry market size, respectively. Chloropropene, trichloroethylene, tetrachloroethylene, epichloropropane, and propylene oxide (chlorine process) accounted for 0.6%, 0.3%, 0.2%, 2.5%, and 1.5%, respectively.

In 2025, China’s caustic soda production capacity, output, and consumption reached 5.15 million tons, 4.65 million tons, and 4.25 million tons, respectively. The compound annual growth rates from 2021 to 2025 were 3.4%, 4.6%, and 3.2%. China’s caustic soda sales increased from 90.7 billion yuan in 2021 to 134 billion yuan in 2025, with a compound annual growth rate of 10.2%. Caustic soda sales volatility is mainly driven by price trends. From 2020 to 2022, due to national dual-control policies, rising raw material costs, and strong downstream demand, caustic soda prices rose rapidly, driving sales growth during this period. Later, as supply and demand stabilized, caustic soda prices fell, leading to a decline in sales in 2023 and stability in 2024. It is expected that by 2030, China’s caustic soda production capacity, output, and consumption will reach 5.73 million tons, 5.25 million tons, and 4.75 million tons, respectively. The compound annual growth rates from 2025 to 2030 will be 2.2%, 2.5%, and 2.2%, respectively. Alumina is the main downstream product of caustic soda. In 2025, the Ministry of Industry and Information Technology of China, together with nine other departments, issued the “High-quality Development Plan for the Aluminum Industry (2025–2027)” to further expand the application of aluminum products and boost alumina demand. It is expected that alumina production will increase from 9.24 million tons in 2025 to 11.33 million tons in 2030, with a compound annual growth rate of 4.2%. This expected growth will drive caustic soda demand and support price increases, ensuring stable revenue growth for the caustic soda industry in the coming years. It is expected that by 2030, China’s caustic soda sales will reach 159.6 billion yuan, with a compound annual growth rate of 5.5% from 2025 to 2030.

As of December 31, 2025, there were over 300 market participants in China’s chlor-alkali chemicals industry. In terms of sales revenue, our group holds a 1.6% market share in China’s chlor-alkali chemicals industry. In this industry, caustic soda is the most important product. As of December 31, 2025, there were over 200 market participants in China’s caustic soda market. Based on 2025 caustic soda sales revenue, our group ranks seventh in China with a market share of 1.6%.

In 2025, the production capacity, output, and sales revenue of granular caustic soda reached 0.6 million tons, 0.5 million tons, and RMB 2.1 billion respectively. As of December 31, 2025, there were less than 20 suppliers of granular caustic soda in China. Based on 2025 granular caustic soda sales revenue, the three major suppliers in China together account for 71.4%, and our group ranks first in China with a market share of 38.1%. Based on 2025 industrial-grade granular caustic soda sales revenue, our group is the top player in China with a market share of 60.0%. Based on 2025 granular caustic soda production capacity and output, our group ranks first in China with market shares of 33.3% and 44.5% respectively.

As of December 31, 2025, there were less than 20 suppliers of chloropropene in China. Based on 2025 chloropropene sales revenue, the three major suppliers in China account for 57.1%, and our group ranks first in China with a market share of 23.8%. In 2025, based on chloropropene production capacity and output, our group ranks fourth and second in China with market shares of 10.0% and 14.8% respectively.

As of December 31, 2025, there were less than 20 suppliers of trichloroethylene in China. Based on 2025 trichloroethylene sales revenue, the three major suppliers in China together account for 63.0%, and our group ranks first in China with a market share of 36.0%. In 2025, based on trichloroethylene production capacity and output, our group ranks first in China with market shares of 20.5% and 37.1% respectively.

As of December 31, 2025, there were less than 20 suppliers of tetrachloroethylene in China. Based on 2025 tetrachloroethylene sales revenue, the three major suppliers in China account for 62.8%, and our group ranks first in China with a market share of 41.4%. Based on 2025 tetrachloroethylene production capacity and output, our group is the top player in China with market shares of 27.3% and 47.1% respectively.

As of December 31, 2025, there were over 30 suppliers of epichlorohydrin in China. Based on 2025 epichlorohydrin production capacity, our group ranks eighteenth in China with a market share of 2.3%. Based on 2025 epichlorohydrin output, our group ranks seventh in China with a market share of 6.8%. Based on 2025 epichlorohydrin sales revenue, our group ranks seventh in China with a market share of 8.2%.

Epichlorohydrine, abbreviated as PO, is the third largest propylene derivative after polypropylene and acrylonitrile. It has chemical reactivity and can react with water, ammonia, alcohols, carbon dioxide, and other substances to form corresponding compounds or polymers. As an important basic chemical raw material, epichlorohydrine is mainly used in the production of polyether polyols, propylene glycol, and various non-ionic surfactants. The mainstream methods for industrial production of epichlorohydrine include chlorination method, co-oxidation method, and hydrogen peroxide method. The co-oxidation process is further divided into ethylbenzene co-oxidation method and isobutane co-oxidation method. The chlorination method of epichlorohydrine has mature production technology, relatively simple process, low investment threshold, and strong adaptability to raw material quality, so it was widely used in the early stage. However, this process relies on chlorine gas as a key raw material and produces a large amount of by-products and wastewater, resulting in significant environmental pressure and compliance costs. In contrast, the co-oxidation method uses peroxides as the oxygen source, does not require chlorine gas, and can produce other chemical products, offering better resource efficiency and environmental performance. Its disadvantages include higher process complexity, high capital investment, and strong dependence on the stable operation of equipment and the market performance of by-products, making its overall economics more sensitive to market fluctuations.

In 2025, China’s epichlorohydrine production capacity, output, and consumption reached 9.7 million tons, 6.4 million tons, and 5.7 million tons respectively. The compound annual growth rates from 2021 to 2025 were 22.6%, 15.5%, and 12.2% respectively. China’s epichlorohydrine sales revenue increased from RMB 44.2 billion in 2021 to RMB 35.7 billion in 2025, with a compound annual growth rate of -5.2%. In 2020, the COVID-19 pandemic caused some epichlorohydrine producers to suspend production, and several producers did not fully recover from the impact in 2021. At the same time, in 2021, the downstream demand for epichlorohydrine rebounded rapidly, leading to supply shortages and rapid price increases, which boosted sales revenue of propylene. Subsequently, as production capacity was gradually put into use, the average price of epichlorohydrine decreased in 2022, resulting in reduced sales revenue. It is expected that by 2030, China’s epichlorohydrine production capacity, output, and consumption will reach 16.3 million tons, 11.0 million tons, and 9.6 million tons respectively, with compound annual growth rates of 10.9%, 11.4%, and 11.0% from 2025 to 2030. China’s epichlorohydrine sales revenue is expected to reach RMB 73.5 billion, with a compound annual growth rate of 15.5%.

The epichlorohydrine industry in China is relatively concentrated. As of December 31, 2025, there were less than 50 market participants in the Chinese market. In terms of sales revenue of epichlorohydrine, our group ranks second in China with a market share of 9.5%.

The carbon three chemicals industry chain is an integrated system that uses carbon three hydrocarbons as core raw materials, employing processes such as propylene dehydrogenation (PDH), selective oxidation, and polymerization to produce bulk basic chemicals and high-value-added products. The core value of this industry chain lies in focusing on propylene production and conversion. As the main target product of upstream processing, propylene is also an essential core raw material for synthesizing many downstream chemical products. Therefore, propylene is the most fundamental product in the carbon three industry chain. It has a wide range of downstream derivatives, including polypropylene (PP), propylene oxide (PO), acrylonitrile (AN), acrylic acid (AA), and isopropyl alcohol (IPA). These products are widely used in industries such as plastics, rubber, textiles, and electronic materials. The carbon four chemicals industry chain is a comprehensive industrial system that uses carbon four hydrocarbon fractions as core raw materials, through processes such as isomerization, alkylation, dehydrogenation, and etherification, to produce various high-value-added chemical products. In this industry chain, the processing of isobutane and its derivative methyl tert-butyl ether (MTBE) is a key step. Isobutane is a high-quality blending component for clean gasoline and a crucial raw material for producing isobutylene, which converts low-value alkanes into high-value olefins. Through etherification with methanol, isobutylene can be further processed to produce MTBE. Due to its excellent octane rating and good mixing properties, MTBE is mainly used as a high-efficiency gasoline additive in the refining industry. Additionally, as an important chemical intermediate, it can be cracked to produce high-purity isobutene, which is then used to produce high-value-added chemicals such as butyl rubber and methyl methacrylate.

By 2025, China’s propylene capacity, output, and consumption will reach 77.7 million tons, 60.8 million tons, and 62.9 million tons respectively. The compound annual growth rates from 2021 to 2025 will be 11.2%, 10.0%, and 9.4% respectively. China’s propylene sales revenue decreased from 86.9 billion yuan in 2021 to 52.2 billion yuan in 2025, with a compound annual growth rate of -12.0%. From 2021 to 2022, rising propylene prices and strong downstream demand drove growth in propylene market sales revenue. From 2022 to 2025, continuous expansion of industry capacity led to oversupply, resulting in a decline in propylene market sales revenue. It is expected that by 2030, China’s propylene capacity, output, and consumption will reach 105.2 million tons, 76.8 million tons, and 77.2 million tons respectively. The compound annual growth rates from 2025 to 2030 will be 6.2%, 4.8%, and 4.2% respectively. It is expected that China’s propylene sales revenue will reach 77.3 billion yuan by 2030, with a compound annual growth rate of 8.2% from 2025 to 2030. In the future, slower expansion of propylene capacity, gradual elimination of outdated production facilities, and deeper integration of the industry chain will alleviate supply pressures. Downstream demand will continue to grow, and downstream products such as polypropylene and propylene oxide are in expansion phases, ensuring stable growth in propylene demand. For example, the output of polypropylene will reach 40.2 million tons in 2025 and is expected to reach 51.0 million tons by 2030, with a compound annual growth rate of approximately 4.9%. Therefore, driven by both supply-side restructuring and stable demand growth, China’s propylene market is expected to maintain steady growth.

By 2025, China’s MTBE capacity, output, and consumption will reach 29.5 million tons, 19.0 million tons, and 14.0 million tons respectively. The compound annual growth rates from 2021 to 2025 will be 9.3%, 7.0%, and -1.7% respectively. China’s MTBE sales revenue increased from 81.9 billion yuan in 2021 to 95.1 billion yuan in 2025, with a compound annual growth rate of 3.8%. From 2021 to 2023, driven by recovery in gasoline consumption, MTBE became a mainstream gasoline additive, leading to steady growth in sales revenue. In 2024, the release of new capacity led to oversupply in the market, causing a decline in industry sales revenue. It is expected that by 2030, China’s MTBE capacity, output, and consumption will reach 35.7 million tons, 28.7 million tons, and 15.1 million tons respectively. The compound annual growth rates from 2025 to 2030 will be 3.9%, 8.6%, and 1.5% respectively. It is expected that China’s MTBE sales revenue will reach 171.2 billion yuan by 2030, with a compound annual growth rate of 12.5% from 2025 to 2030. MTBE can be cracked to produce high-purity isobutene, which is a core raw material for high-value chemical products such as methyl methacrylate (MMA), butyl rubber, and pharmaceutical intermediates. In 2025, the output of methyl methacrylate was approximately 1.8 million tons, and it is expected to reach around 2.6 million tons by 2030, with a compound annual growth rate of approximately 7.6%. Therefore, expanded downstream applications will bring opportunities to the market.

As of December 31, 2025, there were approximately 500 suppliers of methyl tert-butyl ether (MTBE) in China. In 2025, China’s MTBE sales revenue reached 95.1 billion yuan. Based on the sales revenue of MTBE in 2025, our group ranked second, with a market share of 3.8%.