Bio-based Material China Quarterly Report

Welcome to the Bio-based Material Quarterly Newsletter Q3 2024.

Policy

In Q3 2024, China released the Circular on the Action Programme on Further Strengthening the Construction of the Carbon Peak Carbon Neutral Standard Measurement System (2024-2025); and Zhejiang Provincial Department of Industry and Information Technology released the Zhejiang Province Accelerates the Innovation of Synthetic Biology to Lead the High-Quality Development of Biomanufacturing Industry Implementation Plan (Draft for Comments), which is aimed to promote the innovation of biobased materials and bio-manufacturing industry development.

Market Dynamics and Corporate Aspects

In H1 2024, Cathay Biotech' revenue increased 40.16% YoY, hitting a new high revenue since 2020; Hisun Biomaterials' revenue rose 29.19% YoY, net profit rose 27.05% YoY, profit rose 27.05% YoY; Jin Dan's revenue increased 2.25% YoY, net profit increased 17.03% YoY; Brightcn Net's revenue increased 9.79% YoY, net profit decreased 49.50% YoY

In Q3 2024, the following domestic bio-based projects made new progress.

• Xinxiang Chemical Fibre builds a new pilot R&D production line for cellulose fiber and its revenue is up 11.43% YoY in H1 2024.
• Jiangsu Huafeng Ruixun 570,500t/a bio-based material
• Two Lycell Fibre projects: Shandong Sateri 300,000t/a Lycell fibre project; Baoding Swan 65,000t/a Lycell fibre project .
• Two natural bio-based material construction projects: Sichuan Jancen 100,000t/a bamboo fibre material project, and Juntai Technology 10,000t/a lignin project.
• Jiangsu Hengnuo has 110,000t/a bio-based degradable polyester rubber new material project laid the foundation stone and started construction

Price

During Q3, PLA and PHA prices were relatively stable.

The USD/CNY exchange rate in this newsletter is USD1.00=CNY7.1027 on 1 Sept., 2024, sourced from the People's Bank of China. Unless otherwise specified, all the prices mentioned in this newsletter will include the VAT.