New stock news | Changhong New Materials submits its GEM listing application to the Hong Kong Stock Exchange for the second time, with 11 heating product production lines located in Changchun City.

According to the disclosure by the Hong Kong Stock Exchange on April 30, 2026, Chang Hongxin Materials Group Limited (abbreviated as Chang Hongxin) has resubmitted its listing application to GEM of the Hong Kong Stock Exchange, with Jianquan Financing Limited as its exclusive sponsor. Company Overview According to the prospectus, Chang Hongxin mainly focuses on the production and sales of new heating materials and products in the Northeast region of China. The company's product portfolio mainly includes two categories: graphene electric heating grid cloth and graphene integrated heating products, both aimed at providing consumers and industrial applications with efficient and balanced heating functions. Chang Hongxin's sales channels are tailored to two business segments. For the graphene electric heating grid cloth sold under the "Huachen" brand, the company uses a direct sales approach, selling products to industrial end users, including factories and construction companies that integrate the heating grid cloth into their own end products (such as heating floors, heating pads, and heating devices). The sales team in this segment focuses on the industrial applications of graphene electric heating grid cloth, working closely with customers to seamlessly integrate the material into their production processes. On the other hand, the graphene integrated heating products sold under the "Fanxi", "Meishikang", and "Dielian Qingfeng" brands are distributed through a sales network in the Northeast region of China. The target customers for these products include retail stores catering to casual consumers, as well as corporate customers in need of warm protection for outdoor workers. This sales strategy enables the company to effectively meet diverse market demands. Furthermore, Chang Hongxin's production facility in Changchun City is equipped with 11 production lines dedicated to the production of graphene electric heating grid cloth (a key component of heating products). The market for new heating materials and products in China is highly fragmented, with over 50,000 practitioners recorded in 2025. In the materials sector, the top five practitioners collectively account for approximately 0.7% of total revenue, while in the products sector, the top five account for around 1.7% market share. In this context, the company ranked second in the 2025 Chinese new heating materials market, with revenue of approximately 23 million yuan, equivalent to a market share of around 0.2%. The industry is mainly composed of small and medium-sized enterprises, with the largest company holding only 0.2% market share. In the product market, the company ranks first nationwide, with revenue of 96 million yuan and a market share of 0.6%. Financial Information Revenue The company recorded revenues of approximately 97.882 million yuan and 119 million yuan in the fiscal years 2024 and 2025, respectively. Gross Profit The company recorded gross profits of approximately 38.8 million yuan and 49.937 million yuan in the fiscal years 2024 and 2025, respectively. Gross Profit Margin The company's gross profit margin was approximately 39.6% in fiscal year 2024 and 41.9% in fiscal year 2025. Industry Overview Heating materials are classified into traditional heating materials and new heating materials based on their material characteristics. The Chinese heating materials industry may be significantly influenced by technological breakthroughs in China and national policies. Over the past few years, the market size has grown from 33 billion yuan in 2020 to 46.1 billion yuan in 2025, with a compound annual growth rate of 6.9% from 2020 to 2025. It is expected that the Chinese heating materials market will further grow in the coming years, reaching 57.6 billion yuan by 2030, with a compound annual growth rate of 4.6% from 2025 to 2030. In particular, the market size of new heating materials in China has increased from 8.7 billion yuan in 2020 to 15.1 billion yuan in 2025, with a compound annual growth rate of 11.8% from 2020 to 2025. It is expected that the market size of new heating materials in China will further grow in the coming years, reaching 22.1 billion yuan by 2030, with a compound annual growth rate of 7.8% from 2025 to 2030. New heating products mainly refer to products that use new heating materials such as graphene to achieve efficient, safe, energy-saving, and multifunctional heating devices. The market size of new heating products in China has increased from 10.7 billion yuan in 2020 to 16.2 billion yuan in 2025, with a compound annual growth rate of 8.7% from 2020 to 2025. It is expected that the market size of new heating products in China will further develop in the coming years, reaching 23.6 billion yuan by 2030, with a compound annual growth rate of 7.8% from 2025 to 2030. Additionally, in the market for new heating products in 2025, the market sizes of smart heating clothing, personal leisure products, and travel and outdoor products are 400 million yuan, 200 million yuan, and 300 million yuan, respectively. Board of Directors Information The board of directors consists of seven directors, including four executive directors and three independent non-executive directors. Ownership Structure As of the filing date, Ms. Li and Hengfu Technology are considered a group of controlling shareholders. In accordance with GEM listing rules 11.23, shares held by Tianzhong Xianglan through Hengtai Invest will be included in the public shareholding. Additionally, Jilin Huachen has a branch office in Shenzhen, Guangdong Province, China. Intermediary Team Exclusive Sponsor: Jianquan Financing Limited Company Legal Advisor: Hong Kong Law: Skadden, Arps, Slate, Meagher & Flom; Chinese Law: Tianyuan Law Firm; Cayman Islands Law: Ogier Exclusive Sponsor Legal Advisor: Hong Kong Law: King & Wood Mallesons; Chinese Law: Joint Wisdom & Honest Law Firm Independent Auditor and Reporting Accountant: BDO Limited Industry Consultant: Frost & Sullivan Consulting (Beijing) Co., Ltd. Shanghai Branch Compliance Consultant: Jianquan Financing Limited