H1 2023 Financial reports of Hisun Biomaterials and Kingfa 09-13-2023

Summary: Two major new material producers Hisun Biomaterials and Kingfa reported improved revenues but squeezed profits in H1 2023.

In Aug., Zhejiang Hisun Biomaterials Co., Ltd. (Hisun Biomaterials, Stock code: 688203.SH) ands Kingfa Sci. & Tech. Co., Ltd. (Kingfa, Stock code: 600143.SH) released their earning results in H1 2023, both implying being affected by the slow-growing consumption market.


Hisun Biomaterials in H1 2023 (with results disclosed on 14 Aug.):

Financial data:

  • Revenue: USD46.46 million (RMB333.56 million), up 10.23% YoY
  • Net profit attributable to the parent company: USD2.75 million (RMB19.75 million), down 7.55% YoY
  • Net profit after excl. extraordinary gains/losses: USD2.46 million (RMB17.63 million), down 7.38% YoY
  • Production and sales:

  • Sales volume of polylactic acid (PLA) resins hit 17,700 tonnes, up 23% YoY.
  • Production of pure PLA resin was up 35.75% YoY and that of modified PLA resin compounds down 32.09% YoY.
  • Hisun Biomaterials' subsidiary Zhejiang Honor Biomaterials Co., Ltd. completed trail run of the 2nd phase (20,000 t/a PLA production line) of the 50,000 t/a PLA resin and the related products project, and has put it into operation in the reporting period.
  • Hisun Biomaterials' subsidiary Zhejiang Haichuangda Biomaterials Co., Ltd. announced completion of some building structures of the 150,000 t/a PLA funding project, the rest construction work of which is still in progress.
  • Operation summary:

  • The growth of revenue, was the result of increasing sales at home market, as Hisun Biomaterials pointed out in the report;
  • While its net profit was under the influence of fierce competition in the PLA industry, sluggish consumption demand, lower-than-expected implementation of the "plastic ban and restriction" policies; the company's price adjustment to earn market share also impaired its profitability and earnings results in H1.

Kingfa in H1 2023 (with results disclosed on 28 Aug.):

Financial data:

  • Revenue: USD2.83 billion (RMB20.35 billion), up 4.53% YoY
  • Net profit attributable to the parent company: USD65.34 million (RMB469.07 million), down 41.53% YoY
  • Net profit after excl. extraordinary gains/losses: USD49.27 million (RMB353.68 million), down 49.64% YoY
  • Production and sales:

  • Sales volume of finished new material products reached 77,000 tonnes, up 23.44% YoY, 63,000 tonnes of which were fully biodegradable plastics, up 27.53% YoY.
  • By the end of H1 2023, Kingfa has formed 180,000 t/a capacity for PBAT (polybutylene adipate-co-terephthalate)/PBS (polybutylene succinate), and 30,000 t/a for PLA resins.
  • Its 10,000 t/a bio-based 1,4-butanediol (BDO) project is progressing steadily under construction, a part of Kingfa's technological R&D and industrial construction plan of bio-based monomers and bio-based materials.
  • Operation summary:

  • Kingfa credited China's position as the largest producer and consumer of new chemical materials in the world and China's prospective new material industry currently at its key development stage prioritising industrial structure optimisation and industry upgrading, to its continuously rising revenue. The rapid development of strategic emerging industries such as new energy vehicles, photovoltaics, energy conservation, new infrastructure, 5G communications, artificial intelligence and VR/AR, have showed Kingfa new opportunities for sustainable, high-quality growth.
  • Explanation for the slashed profit was made that the new chemical material industry has been living under the shadow of the complicate international economic environment encountering runaway inflation, geopolitics, as well as domestic economic challenges. These factors imposed great pressure on the company's operations.
Table Kingfa's H1 2023 revenue by product category, million USD

Product category


YoY change

Operating costs

YoY change

Modified plastics





New materials





Green petrochemical products





Medical and healthcare products





Trade goods





Note: 1. Modified plastic products include original modified plastics and environmentally-friendly high-performance recycled plastics;2. New material products include fully biodegradable plastics, specialty engineering plastics, carbon fibre and composite materials;3. Green petrochemical products include propylene, isooctane, methyl ethyl ketone, liquefied gas and ABS resin.

Source: Kingfa


More information can be found at CCM Bio-based Material China Quarterly Report.

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