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

Tongcheng Advanced Materials Group Co., Ltd. (hereinafter referred to as "Tongcheng New Materials") successfully went public on September 29, 2026. The company plans to issue 68,118,700 H-shares, with 90% intended for international offerings and 10% for Hong Kong public offering. The final price per share is HK$44, and the total funds raised will be approximately HK$29.97.

During this IPO process in Hong Kong, Frost & Sullivan mainly undertakes the following tasks: helping the issuer accurately and objectively understand its position in the target market, using market data to identify, support, and present 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; helping the issuer communicate with the Stock Exchange and investors, enabling investors to understand the market ecosystem and competitive landscape; and assisting the issuer in responding to inquiries from the Stock Exchange regarding industry-related issues.

New materials refer to materials that have emerged newly or been improved through traditional materials, resulting in enhanced performance and specific functions. The new material industry features "three highs" in terms of technology, research and development, and added value, along with strong international characteristics and wide applications. It is widely regarded as an important indicator of a country's overall national strength and technological level. New materials can generally be divided into advanced basic materials, key strategic materials, and cutting-edge new materials. Advanced basic materials include upgraded products 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; while cutting-edge new materials include fully biodegradable materials, which represent innovative materials at the stage of industrialization development.

Rubber is an important strategic material for industrial construction. It possesses characteristics such as elasticity and wear resistance, and serves as an excellent electrical insulation material. Due to these properties, rubber becomes a high-quality raw material for tire production. Rubber additives are special chemical products used in rubber processing. They are used to enhance the performance of rubber products and ensure their service life. They are an important auxiliary material in the rubber industry, significantly improving processing techniques 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 additives market, as the number of new energy vehicles continues to increase, rubber additives for tires maintained stable growth from 2021 to 2025. The market value of rubber additives for tires worldwide 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, and the projected compound annual growth rate from 2025 to 2030 will be around 1.9%.

Specifically, the output value of phenolic resin rubber additives for tires increased from 4.9 billion RMB in 2021 to 5.6 billion RMB in 2025, with a compound annual growth rate of 3.4% during this period. In the future, due to the relatively stable demand for tire replacement, 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 6.7 billion RMB, and the compound annual growth rate from 2025 to 2030 will be approximately 3.6%.

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

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

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

In 2025, the top five companies in the Chinese phenolic resin rubber additives market had a total sales revenue of approximately 2.6 billion RMB, accounting for approximately 71.1% of the market share. Based on sales revenue in 2025, our company was the largest producer of phenolic resin rubber additives for tires in China.

Growth in Demand for New Energy Vehicles: The rapid adoption of new energy vehicles has become an important growth engine for China's automotive industry, expanding the vehicle market and boosting demand for tires and rubber products. Compared to traditional fuel vehicles, new energy vehicles have higher requirements for tire low rolling resistance and lightweight properties based on battery life and energy efficiency goals. This trend drives the development of tire manufacturing towards higher quality and precision, prompting continuous optimization of formulation systems and setting higher standards for the performance and efficiency of rubber additives.

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跟随下游配套“出海”：随着中国轮胎企业在泰国、越南、欧洲等地加快布局海外工厂，国内橡胶助剂企业亦积极响应全球化趋势，实施海外布局战略。为服务全球客户并提升本地化竞争力，国内橡胶助剂企业通过设立海外分销中心或生产基地，及时响应市场需求，并提供技术支持及定制化解决方案。此类本地化布局有助于降低贸易及物流风险，进一步嵌入全球轮胎供应链，巩固与当地企业的合作关系，并提升全球市场占有率及影响力。

South Asia and Latin America Become New Export Drivers: Against the backdrop of tightening trade barriers in traditional European and American markets, Chinese rubber additives companies are accelerating their expansion into emerging markets such as South Asia, the Middle East, and Latin America. The demand for rubber products in these regions is growing rapidly, and relatively relaxed market access policies along with low trade costs provide new opportunities for Chinese rubber additives companies to expand their markets.

Semiconductor photoresist is a critical material in chip manufacturing, capable of precisely transferring circuit patterns from the mask to the silicon surface. Its performance directly affects chip integration density, as well as computing speed, power consumption, and cost. It is a key material that enables the continuation of Moore's Law and achieves smaller chip process sizes. Semiconductor photoresists can be classified by photosensitive wavelength into G line (436nm), I line (365nm), KrF (248nm), ArF (193nm), and EUV (13.5nm) categories, making it the core material supporting semiconductor manufacturing.

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

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

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