Qifeng New Materials: Growth Driven by Domestic Substitution and Dual-Base Strategy

Recently, Qifeng New Materials Co., Ltd. (hereinafter referred to as “Qifeng New Materials”) held an investor relations survey, engaging in in-depth communication with multiple institutions including Zheshang Securities, Guohai Securities, and Agricultural Bank of China HuiLi Fund. The company showcased its core advantages in performance growth, technological innovation, and capacity layout. As a leading enterprise in the specialty paper industry, Qifeng New Materials is driving high-quality development through multiple growth engines, including a strong Q3 performance surge, breakthroughs in domestic substitution of high-end products, synergistic deployment of dual bases, and continuous upgrades of its product matrix. The company is setting a benchmark for industry transformation.

Technological Breakthroughs and Rich Domestic Substitution Achievements

As a national manufacturing champion demonstration enterprise, Qifeng New Materials always regards technological innovation as its core competitiveness. It has achieved multiple domestic substitution breakthroughs in high-end specialty paper, breaking foreign technological monopolies. The company is the only domestic manufacturer capable of stable mass supply of high- and mid-grade latex paper, with over 40 mature latex paper varieties developed, including dry sand latex paper and water sand latex paper.

Latex paper is known as “the beautician of industry,” widely used in grinding and polishing processes in aerospace, automotive, electronics, and furniture industries. The global latex paper market capacity is about 90,000 tons, with high-end latex paper accounting for approximately 40,000 tons, and mid- to low-end latex paper (including pre-coated kraft paper and oil-resistant paper) about 50,000 tons. Qifeng New Materials’ latex products, with excellent physical strength, water and oil resistance, and stable batch quality, not only reduce domestic customer production costs and shorten order cycles but also win broad market recognition with high cost performance, steadily increasing market share. Additionally, the company is the sole domestic supplier of impregnated paper used by IKEA, successfully filling a domestic technological gap and demonstrating its leading position in high-end specialty paper.

Relying on high-end R&D platforms such as the Academician Workstation and Postdoctoral Research Station, the company has accumulated over 200 national patents. It has been a main drafter of nearly 10 national and industry standards, including decorative base paper and surface wear-resistant paper, continuously strengthening its technological strength and industry influence.

Synergistic Efforts of Dual Bases and Continuous Scale Effect Release

Qifeng New Materials’ differentiated layout of “North Shandong and South Guangxi” dual bases has become a strategic support for optimizing resource allocation and expanding market space. The Shandong base focuses on new product development and customized order production, leveraging strong R&D and flexible manufacturing capabilities to precisely meet customer needs. The Guangxi base, as a large-scale standardized product manufacturing hub, is deeply integrated into the “Southern China Board Material Capital” industrial cluster, utilizing its proximity to ASEAN to seize the opportunities of RCEP, effectively radiating incremental demand in Southeast Asian infrastructure markets.

Currently, the company has built 24 internationally advanced paper machine production lines with an annual capacity of over 500,000 tons. As the 200,000-ton special paper project in Guigang, Guangxi (Phase I) gradually releases 80,000 tons of capacity, scale economies will further emerge. The two bases complement each other in production scheduling, raw material procurement, and market coverage, ensuring flexible delivery of customized orders and continuously optimizing cost structures through large-scale production, thus establishing a solid scale advantage in industry competition.

Product Matrix Expansion and Continuous Growth Momentum

Driven by market demand, Qifeng New Materials continuously advances product iteration and upgrades, enriching its product matrix and expanding application fields to sustain growth. The company has formed four core product systems: decorative base paper, latex paper, personal hygiene materials, and others, covering over 600 varieties, widely used in home decoration, building renovation, industrial manufacturing, and other fields.

In recent years, the company has successfully developed new products such as digital printing decorative paper, Washi paper, and EB-curable paper. The sales proportion of new products beyond decorative base paper has exceeded 20%, with ongoing product structure optimization. Customer demands for customized production of Washi paper and tape paper are increasing, and new applications such as wallpaper and covering paper have been successfully developed, effectively reducing reliance on a single product. With stable product quality and diversified supply, the company has established long-term stable partnerships with well-known brands like IKEA, Saint-Gobain, Sogood, and Shengxiang Flooring. Its products are exported to over 40 countries and regions, with a continuously growing global brand influence.

Outstanding Q3 Performance and Significant Profitability Improvement

Data shows that Qifeng New Materials achieved leapfrog growth in Q3 2025, demonstrating strong operational resilience and development potential. In the first three quarters, the company realized operating revenue of 2.53 billion yuan and net profit attributable to shareholders of 102 million yuan. Notably, Q3 performance was particularly outstanding, with revenue of 850 million yuan, an 8.06% year-on-year increase, and net profit of 39.29 million yuan, a dramatic 1608.27% year-on-year surge, marking a qualitative leap in profitability.

The high growth in performance is the result of the company’s precise market opportunities, continuous operational optimization, and comprehensive management improvements. Benefiting from sustained demand from urban renewal, consumption upgrades, and full-house customization, along with the accelerated “paper replacing plastic and wood” process under the “dual carbon” strategy, core product market demand remains strong. Meanwhile, through refined cost control and supply chain efficiency improvements, the company further optimizes its profit structure. Its operating cash flow remains ample, with net cash flow from operating activities reaching 3.39 billion yuan in the first three quarters, a 26.97% increase year-on-year, providing solid support for future development.

In terms of shareholder returns, the company has always committed to sharing development results with investors. Since listing, it has distributed dividends totaling 1.207 billion yuan. Based on healthy financials and ample cash flow, the company actively responds to relevant requirements by implementing medium-term profit distribution strategies, optimizing dividend rhythm, and continuously sharing development benefits with investors to enhance their sense of gain.

Looking ahead, with ongoing consumption upgrades and environmental policies, the market space for specialty paper will further expand. Qifeng New Materials will continue focusing on high-margin product development and capacity utilization, deepen the synergy of dual bases and global layout, drive product structure optimization through technological innovation, and steadily consolidate its leading position in domestic substitution. The company aims to advance steadily on the path of high-quality development in the specialty paper industry, contributing more to industry green transformation and the real economy.

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