We are a PRC-based supplier of new chemical materials and upstream and downstream products derived from gelatin and collagen. Serving the chemical industry and the health and wellness industry, we primarily engage in the R&D, production, and sales of our products for industrial and commercial use. For our chemicals segment, our customers include manufacturers from downstream industries (such as automobiles, new energy and home appliances) and supply chain solution providers of downstream manufacturers. For our health and wellness segment, our customers mainly include medical and pharmaceutical manufacturers who use our products as raw materials for their production of downstream products such as supplements and medicines.
In the field of chemicals, we focus on marking our footprints along the new chemical materials industry chain that we have a product offering that covers upstream (i.e. our green petrochemical materials, such as alkenes aromatics, styrene, polystyrene) and midstream (i.e. organic polymer modified materials and organic polymer composite materials) of the industry value chain; and our downstream customers utilise our products as raw materials for their product manufacturing and performance optimisation. Laying our foundation on our organic polymer material modification business, we have expanded upstream into the R&D and production of green petrochemical materials such as styrene, polystyrene (PS), expandable polystyrene (EPS), and polypropylene (PP). Meanwhile, we continue to strengthen our downstream layout by exploring diverse applications in downstream industries such as electronics and appliances, automotive, new energy, and energy storage industries. According to Frost & Sullivan, in 2024, we ranked as China’s second-largest organic polymer modified materials and organic polymer composite materials enterprise by sales revenue with a market share of 2.5%. Additionally, we are China’s largest polystyrene enterprises by production capacity in 2024.
In the field of health and wellness, we focus on natural bone collagen and vertically extend to the downstream of the industry chain. Over the last few decades, our major subsidiary, Dongbao Bio-Tech has vertically extended from collagen to “collagen+” with a product portfolio that covers collagen peptides-based/derived raw materials to end products, gradually exploiting the niche segments of the health and wellness industry which allow us to enjoy economies of scale. According to Frost & Sullivan, in terms of production, we were the second-largest bone gelatin producer in the Chinese market and the largest domestic bone gelatin producer in China in 2024. Furthermore, we were also the second-largest domestic empty capsules producer in China in 2024.
During the Track Record Period, we experienced strong growth in revenue. For FY2022, FY2023 and FY2024, our revenue was RMB13,406.4 million, RMB17,438.8 million and RMB19,187.5 million, respectively, representing a CAGR of 19.6% from FY2022 to FY2024. For 10MFY2025, we record revenue of RMB17,443.9 million.
For FY2023, FY2024, and 10MFY2025, our sales increased by 30.1%, 10.0%, and 10.0% year-on-year/period-on-period, respectively. As the primary downstream application of our products is in the household appliance sector during the Track Record Period, which is a relatively mature market with intensive competition, we have adopted a relatively competitive pricing strategy for our customers in such sector to safeguard our market position and sales volume, which in turn slowed down the pace of our overall sales growth in FY2024 and 10MFY2025 as compared with FY2023. We will continue to cultivate innovation through research and development, broaden our product portfolio, and expand downstream applications of our products to promote sales growth.
Our Business and Products
Chemicals
We have successfully built three growth engines in the field of chemicals, namely: (i) green petrochemical materials, (ii) organic polymer modified materials, and (iii) organic polymer composite materials, forming a vertically integrated value chain spanning “monomers – synthetic resins – organic polymer modified materials/organic polymer composite materials – end products”. Applications of our products cover a wide range of major industries, including home appliances, automotive, new energy, consumer electronics, packaging, healthcare, and biodegradable materials.
In relation to our green petrochemical materials business, in FY2023, we received a payment of one-off government grant of approximately RMB10.0 million for the setup of the green petrochemicals production base in Zhejiang. We believe that our development in the green petrochemical materials segment does not only form part of our vertical integration but also allow us to seize opportunities arising from the favourable industry landscape supported by various government policies at national and provincial level.
To further enhance our vertically integrated model, we have strategically invested in Gon Chemical (Dongming). Leveraging Gon Chemical (Dongming)’s modernized production lines for basic organic chemical raw materials, we have expanded into the upstream chemical monomers and fine chemicals segment.
For our chemicals segment, we have established a full-process quality management system spanning raw materials to finished products. Our system emphasizes cross- departmental collaboration and our quality standards are formulated with reference to relevant laws and regulations, industry standards, customer requirements and internal protocols. We implement such quality standards in various critical procedures. For details of our quality control policies and procedures, please see “Business — Quality Control”.
Health and Wellness
With our expertise in natural collagen, we have vertically expanded into the downstream segments that covers the value chain from raw materials (i.e. our gelatin, collagen peptides), containers for dosage forms of medication or supplement (i.e. our empty capsules) to consumer products (i.e. our collagen+ series). We continuously develop and widen our offerings to include high-value-added collagen derivatives products, gradually expanding applications to penetrate sub-segments of the larger health and wellness market, including “medical, beauty, wellness, food” (醫、美、健、食) segments as well as emerging niche such as the advanced materials segment.
For the health and wellness segment, as our products directly affect the safety, consistency, and efficacy of downstream pharmaceuticals and health supplements, we strictly adhere to national laws, regulations, and industry standards and have established a comprehensive quality management system that covers all aspects, including supplier selection, raw material procurement, manufacturing, product testing, and after-sales service. For details of our quality control policies and procedures, please see “Business — Quality Control”.
During the Track Record Period and up to the Latest Practicable Date, we had not received product-related complaint that may have a material and adverse impact on our Group.
During the Track Record Period and up to the Latest Practicable Date, there were no material product returns, product recalls or complaints from our customers.
Source: Gon Technology (02768) Prospectus (IPO Date : 2026/01/27) |