New stock news | Baogai New Material re-submits an application to the Hong Kong Stock Exchange GEM board as a professional manufacturer in China's composite material manhole cover industry.

According to the disclosure made by the Hong Kong Stock Exchange on April 2nd, Shandong Baogai New Material Technology Co., Ltd. (referred to as Baogai New Material) has once again submitted its listing application to the Hong Kong Stock Exchange GEM Board, with Zhongtai International as its exclusive sponsor. Company Overview According to the prospectus, the company was established in 2009 and has become a professional manufacturer in the field of composite material ditch covers in China, specializing in the production of GFRP ditch cover products that are mainly used to meet engineering and infrastructure needs. GFRP is a high-performance composite material composed of glass fibers embedded in a resin matrix. The company's comprehensive product portfolio using GFRP mainly includes cable ditch covers, drainage ditch covers, and manhole covers, providing services for important sectors in China such as electricity, transportation, urban public facilities, water conservancy projects, real estate, and petrochemical engineering. According to Frost & Sullivan data, by 2024, the company ranked first in the market share of China's cable ditch cover and GFRP cable ditch cover industry, and ranked third in the market share of ditch cover industry. The company manufactures and supplies a full range of high-performance GFRP ditch cover products, mainly including cable ditch covers, drainage ditch covers, and manhole covers. The company's GFRP ditch cover products are customizable, with specifications and configurations provided according to requirements. The company's product matrix is suitable for non-standard sizes, special functions (such as emergency escape fluorescent guidance), and branded customer logos to meet customers' customization needs. The company also provides installation services on all its products, uses IoT technology, and actively promotes the intelligentization upgrade of intelligent manhole cover management systems. The company's production process includes five main stages: (i) internal mold design and production (if needed), (ii) metal frame reinforcement manufacturing (if needed), (iii) raw material processing, (iv) compression molding process, and (v) finished product quality control and storage. Raw material processing includes BMC (a thermosetting composite material composed of chopped strands) and SMC (a sheet-like fiber reinforced thermosetting material, usually containing glass fiber rovings), with raw materials compressed and molded into finished products. Generally, the main difference between BMC and SMC lies in the preparation and processing methods of the composite materials themselves, leading to significant differences in the compression molding process. The company operates three production factories in Shandong Province and Shaanxi Province, with a total land area of approximately 42,769 square meters and a construction area of approximately 23,400 square meters. These factories are equipped with machinery including compression molding machines, mixing machines, oil temperature machines, grid drawing machines, and rebar processing equipment, with an operating rate of 55.1% to 77.7% during the reporting period. Financial Information Revenue In 2023, 2024, and 2025, the company's revenue was approximately RMB 137 million, RMB 131 million, and RMB 144 million, respectively. Profit In 2023, 2024, and 2025, the company's attributable net profit to equity shareholders was RMB 25.22 million, RMB 21.62 million, and RMB 24.05 million, respectively. Gross Profit Margin In 2023, 2024, and 2025, the company's gross profit margin was 38.2%, 37.5%, and 38.2%, respectively. Industry Overview From 2020 to 2024, the market size of China's ditch cover industry steadily increased from RMB 84.7 billion to RMB 96.8 billion, with a compound annual growth rate of 3.4%. The market size growth of cable ditch covers was higher than the industry average, with a compound annual growth rate of 3.9%. The market sizes of drainage ditch covers, manhole covers, and other products also steadily expanded, with compound annual growth rates of 3.4%, 3.0%, and 2.2%, respectively. Looking ahead, driven by the continuous expansion of energy infrastructure and national infrastructure construction and renovation projects, it is expected that the market size will continue to grow and reach RMB 115 billion by 2029, with a compound annual growth rate of 3.5%. All segmented markets are expected to maintain steady growth, with the compound annual growth rate of cable ditch covers reaching the highest at 4.1%. From 2020 to 2024, the market size of China's cable ditch covers steadily increased from RMB 34.1 billion to RMB 39.8 billion, with a compound annual growth rate of 3.9%. During this period, the market share of concrete cable ditch covers was the largest, while the growth rate of GFRP cable ditch covers (including SMC, BMC, and other composite materials) exceeded industry growth. The market size of SMC cable ditch covers increased from RMB 4.9 billion to RMB 6.3 billion, with a compound annual growth rate of 6.5%; meanwhile, the market size of BMC cable ditch covers increased from RMB 3.3 billion to RMB 4.2 billion, with a compound annual growth rate of 6.2%. Looking ahead, it is expected that the market size will reach RMB 49.0 billion by 2029, with a compound annual growth rate of 4.2%. As the market matures and advanced materials are continuously adopted, the proportion of GFRP covers is expected to gradually increase. By 2029, the market size of SMC cable ditch covers is expected to reach RMB 9.1 billion, with a compound annual growth rate of 7.6%; meanwhile, the market size of BMC cable ditch covers is expected to reach RMB 5.9 billion, with a compound annual growth rate of 7.0%. Board of Directors Information After compilation, the Board of Directors will consist of eight directors, including five executive directors and three independent non-executive directors. Directors serve a term of three years, and may be re-elected for additional terms upon term expiration. The Board is responsible for and has general authority over the business management and operations of the company, including determining the company's business strategy and investment plan, implementing resolutions passed at shareholders' meetings, and exercising other powers, functions, and duties granted by the Articles of Association. The Board is also responsible for formulating and reviewing policies and practices related to corporate governance, risk management, internal control, compliance with laws, and regulatory requirements. Equity Structure Prior to compilation, Mr. Liu, Ms. Li, and Baocheng held approximately 58.71%, 28.39%, and 9.68% equity, respectively. As (i) Ms. Li is the spouse of Mr. Liu, and (ii) Mr. Liu is the sole general partner of Baocheng, Mr. Liu, Ms. Li, and Baocheng are considered a group of controlling shareholders, jointly holding approximately 96.78% of the total issued shares of the company as of the last practicable date (March 25, 2026). Intermediary Team Exclusive Sponsor: Zhongtai International Financing Limited; Legal Advisors: Mai Jiarong Law Firm, Yingke Law Firm, Beijing; Exclusive Sponsor and Compilation Legal Advisors: Tianyuan Law Firm (Limited Liability Partnership), Tianyuan Law Firm; Reporting Accountants and Auditors: KPMG Certified Public Accountants; Industry Consultant: Frost & Sullivan Consulting Limited, Shanghai Branch; Property Valuer: APAppraisal Limited; Compliance Advisors: Zhongtai International Financing Limited.