Bio-based Material China Quarterly Report

Welcome to the Bio-based Material Quarterly Newsletter Q4 2024

Policy

In Q4 2024, the Shanghai Municipality Economic and Information Committee and several other departments issued a notice on the Shanghai Municipality Plan to Promote High-Quality Development of the New Material Industry (2025-2027), showing the city's support for synthetic biomaterials, biodegradable materials, and other alternatives to traditional chemical materials; Hangzhou officially launched the Hangzhou Synthetic Bio-industry High-Quality Development Three-Year Action Plan (2024-2026).

Market Dynamics and Corporate Aspects

In late Oct. 2024, Kingfa disclosed its financial report for the third quarter of 2024. The company achieved a revenue of USD5.63 billion (RMB40.47 billion) for the first three quarters, a YoY increase of 18.01%; it achieved a net profit attributable to the parent company of USD95.04 million (RMB683.03 million), a YoY increase of 41.02%.

In Q4 2024, the following domestic bio-based projects made new progress.

• Chifeng Huaheng bio-based succinic acid and bio-based products raw material production base project
• Zhongke Guosheng's bio-based material technological transformation project
• Bayannur Zhongke Chemical's furfural production project
• The 10,000 t/a high purity materials lignin project (Phase I) by Zhongke Wanya
• Two biodegradable fiber projects: Longyan Xulin bamboo straw production of degradable plant cobs project and Bengbu Xinghe 60,000 t/a straw-made bio-fibre project

Price

During Q4, PLA and PHA prices were relatively stable.

The USD/CNY exchange rate in this newsletter is USD1.00=CNY7.1865 on 2 Dec., 2024, sourced from the People's Bank of China. Unless otherwise specified, all the prices mentioned in this newsletter will include the VAT.