Announcement of Listing | Frost & Sullivan Supports Tongcheng New Material Group Co., Ltd. in Successfully Listing in Hong Kong (9607.HK)

Tongcheng New Materials Group Co., Ltd. (hereinafter referred to as 'Tongcheng New Materials') successfully listed on the stock market on September 29, 2026. The company plans to issue 68.1187 million H shares, with 90% being international offerings and 10% being Hong Kong public offerings. The final price per share is HK$44, and the total raised funds are approximately HK$29.97.

During this listing process in Hong Kong, Frost & Sullivan performed the following key tasks: helping the issuer accurately and objectively understand its position in the target market, using market data to identify and highlight the issuer's competitive advantages; assisting the issuer, investment banks, and other intermediary institutions in completing important sections such as the prospectus overview, competitive advantages and strategy, industry overview, and business details; helping the issuer communicate with the Stock Exchange of Hong Kong and investors, enabling investors to understand the market ecosystem and competition landscape; and assisting the issuer in responding to inquiries from the Stock Exchange regarding industry issues.

New materials refer to materials that have emerged or been improved through traditional materials, resulting in enhanced performance and specific functions. The new material industry features "three highs" in technology, research and development, and added value, with strong international influence and wide applications. It is widely regarded as an important indicator of a country's overall national strength and technological level. New materials can be divided into advanced basic materials, key strategic materials, and cutting-edge new materials. Advanced basic materials include upgraded versions of traditional basic materials such as high-performance rubber additives; key strategic materials include electronic materials such as semiconductor photoresists, CMP polishing pads, high-purity solvents, and display photoresists; cutting-edge new materials include innovative materials in the industrialization stage, such as fully biodegradable materials.

Rubber is an important strategic material in industrial construction, possessing characteristics such as elasticity and wear resistance, and serving as an excellent electrical insulating material. Due to these properties, rubber is used as a high-quality raw material for tire production. Rubber additives are special chemical products used in rubber processing, enhancing the performance of rubber products and ensuring their service life. They are important auxiliary materials in the rubber industry, significantly improving processing technologies and product quality. Although the usage amount is small, they play a decisive role in improving product performance.

According to Frost & Sullivan's report, in the global rubber additive market, with the continuous growth of the number of new energy vehicles, rubber additives for tires maintained stable growth from 2021 to 2025. The market value of rubber additives for tires increased from RMB 20.3 billion in 2021 to RMB 21.9 billion in 2025, with a compound annual growth rate of 2.0%. It is expected to reach approximately RMB 24.1 billion by 2030, with a projected compound annual growth rate of about 1.9% from 2025 to 2030.

Specifically, the output value of phenolic resin rubber additives for tires increased from RMB 4.9 billion in 2021 to RMB 5.6 billion in 2025, with a compound annual growth rate of 3.4%. In the future, due to relatively stable tire replacement demand, the output value of phenolic resin rubber additives for tires will grow at a slower pace. By 2030, the output value is expected to reach RMB 6.7 billion, with a compound annual growth rate of about 3.6% from 2025 to 2030.

In the Chinese rubber additive market, most rubber additives are used in automotive tire-related scenarios. With the increasing demand for new energy vehicles, rubber additives for tires will maintain stable growth. The market value of rubber additives for tires in China increased from RMB 14.9 billion in 2021 to RMB 15.9 billion in 2025, with a compound annual growth rate of 1.6%. It is expected to reach approximately RMB 17.8 billion by 2030, with a projected compound annual growth rate of about 2.2% from 2025 to 2030.

Among them, from 2021 to 2025, the output value of phenolic resin rubber additives for tires increased from RMB 3.3 billion to RMB 3.7 billion, with a compound annual growth rate of 2.9%. In the future, as the demand for high-performance rubber additives increases, the output value of phenolic resin rubber additives for tires will continue to grow. It is expected to reach RMB 4.5 billion by 2030, with a compound annual growth rate of about 3.7% from 2025 to 2030.

According to Frost & Sullivan's report, in 2025, the top five companies in the global phenolic resin rubber additive market had a combined sales revenue of approximately RMB 5.4 billion, with a combined market share of about 95.3%. Based on sales revenue in 2025, our company is the largest rubber additive company for tires in the world.

In 2025, the top five domestic companies in the Chinese phenolic resin rubber additive market had a combined sales revenue of approximately RMB 740 million. Based on sales revenue in 2025, our company is the largest domestic company in terms of sales of phenolic resin rubber additives for tires in China.

Growth in new energy vehicle demand: The rapid penetration of new energy vehicles has become an important growth engine for China's automotive industry, expanding the entire vehicle market and driving up demand for tires and rubber products. Compared with traditional fuel vehicles, new energy vehicles have higher requirements for tire low rolling resistance and lightweight properties based on endurance and energy efficiency goals. This trend promotes the development of tire manufacturing towards higher-end and refined levels, requiring continuous optimization of formula systems, and setting higher standards for the performance and efficiency of rubber additives.

ESG transformation demands drive process optimization: Against the backdrop of the 'Dual Carbon' goal and stricter environmental regulations, green manufacturing and technological innovation have become important drivers for the high-quality development of China's rubber additives industry. Policies and market demands continue to raise environmental protection standards, accelerating technological innovation and clean production reforms in the industry. As upstream enterprises increase requirements for the environmental safety of raw materials during ESG transformation, rubber additive companies also promote production emission reduction, accelerating the implementation of clean processes and green products.

Following downstream partners to 'go global': As Chinese tire companies accelerate the establishment of overseas factories in Thailand, Vietnam, Europe, and other regions, domestic rubber additive companies are also actively responding to the globalization trend, implementing overseas expansion strategies. To serve global customers and enhance local competitiveness, domestic rubber additive companies establish overseas distribution centers or production bases to promptly respond to market demands and provide technical support and customized solutions. Such local expansions help reduce trade and logistics risks, further integrate into the global tire supply chain, strengthen relationships with local enterprises, and enhance global market share and influence.

Southeast Asia and Latin America become new export engines: Against the backdrop of stricter trade barriers in traditional European and American markets, Chinese rubber additive companies are accelerating the exploration of emerging markets such as Southeast Asia, Middle East, and Latin America. Rapid growth in demand for rubber products in these regions, along with relatively loose market access policies and low trade costs, provide new opportunities for Chinese rubber additive companies to expand into new markets.

Semiconductor photoresists are key materials for chip manufacturing, capable of accurately transferring circuit patterns on the mask onto the silicon surface. Their performance directly affects chip integration level, and further impacts processing speed, power consumption, and cost. They are crucial materials that enable the continuation of Moore's Law and the miniaturization of chip processes. Semiconductor photoresists can be divided into G-line (436nm), I-line (365nm), KrF (248nm), ArF (193nm), and EUV (13.5nm) based on photosensitive wavelength, and they are core materials supporting semiconductor manufacturing.

According to Frost & Sullivan's report, in terms of sales revenue in the global semiconductor photoresist market, ArF photoresist sales revenue increased from $1.2 billion in 2021 to $1.4 billion in 2025, and is expected to reach $2.1 billion by 2030, with a compound annual growth rate of 9.3% from 2025 to 2030. KrF photoresist sales revenue increased from $700 million in 2021 to $900 million in 2025, with a compound annual growth rate of 6.5%, and is expected to reach $1.3 billion by 2030, with a compound annual growth rate of 6.0% from 2025 to 2030. EUV photoresist sales revenue increased from $200 million in 2021 to $300 million in 2025, and is expected to reach $900 million by 2030, with a compound annual growth rate of 22.9% from 2025 to 2030. G/I line and other photoresist sales revenue increased from $500 million in 2021 to $600 million in 2025, and is expected to reach $700 million by 2030.

In terms of sales revenue in the Chinese semiconductor photoresist market, ArF photoresist sales revenue increased from RMB 1.5 billion in 2021 to RMB 3.5 billion in 2025, with a compound annual growth rate of 23.6%, and is expected to reach RMB 7.1 billion by 2030, with a compound annual growth rate of 15.2% from 2025 to 2030. KrF photoresist sales revenue increased from RMB 1.4 billion in 2021 to RMB 2.4 billion in 2025, with a compound annual growth rate of 14.4%, and is expected to reach RMB 4.4 billion by 2030, with a compound annual growth rate of 12.9% from 2025 to 2030. G/I line and other photoresist sales revenue increased from RMB 700 million in 2021 to RMB 1.1 billion in 2025, with a compound annual growth rate of 12.0%, and is expected to reach RMB 1.6 billion by 2030, with a compound annual growth rate of 7.8% from 2025 to 2030.

According to Frost & Sullivan's report, the market share of the semiconductor photoresist market is primarily occupied by leading Japanese suppliers. In the global market, our company ranked ninth in semiconductor photoresist sales in 2025.