Leading Chinese aluminum pigment manufacturer Zuqing New Materials lists on Beijing Stock Exchange, accelerating import substitution journey

Recently, the leading domestic company in microfine spherical aluminum powder and aluminum pigment industry—Zuxing New Materials Co., Ltd. (Stock code: 920078.BJ, hereinafter referred to as “Zuxing New Materials”)—successfully completed online subscriptions and officially listed on the Beijing Stock Exchange on March 18.

Zuxing New Materials set the issuance price at 6.98 yuan per share. The corresponding 2024 post-deduction net profit per share yields a diluted price-to-earnings ratio of 14.99 times, significantly lower than the industry reference PE ratio of 34.76 times. The IPO attracted enthusiastic market participation, with 504,400 accounts involved in the initial offering, and nearly 100,000 investors successfully allocated shares. The online winning rate was approximately 0.021%, reflecting high market attention.

Deeply Cultivating Niche Markets, Solidifying Leading Position

According to the prospectus, Zuxing New Materials is one of the earliest companies in China to enter the aluminum pigment industry. After years of development, the company has grown into a leading enterprise in China’s microfine spherical aluminum powder and aluminum pigment sectors. Microfine spherical aluminum powder is mainly used in manufacturing aluminum pigments, pesticides, refractory materials, back-surface aluminum slurry for photovoltaic cells, extraction of rare and precious metals, 3D printing, thermal conductive materials, heating packs, military aerospace, nuclear waste treatment, and other fields. Aluminum pigments are key raw materials for coatings, printing inks, and plastics, with downstream applications in automotive, 3C electronics, household appliances, construction machinery, and building materials industries.

According to data from the China Coatings Industry Association, Zuxing New Materials’ aluminum silver powder ranks second in domestic downstream powder coating applications, and its high-performance aluminum pigment production and sales are third globally and first nationally.

Strong technological strength is the cornerstone of the company’s core competitiveness. To date, the company holds 90 authorized patents, including 49 invention patents, 41 utility model patents, and 29 patent applications. During the reporting period, core technical products accounted for over 99% of revenue, successfully transforming technological achievements into economic benefits.

Currently, China’s coating industry is undergoing a critical period of high-quality development, providing a favorable environment for the company’s growth. The China Coatings Industry Association has stated that aluminum pigments are among the fastest-growing categories in China’s pigment sector during the 14th Five-Year Plan, with a compound annual growth rate of nearly 6%, offering broad market potential. The association predicts that between 2025 and 2026, the annual growth rate could further increase to 8%.

More importantly, the company is benefiting deeply from the trend of manufacturing upgrades and supply chain independence, accelerating import substitution in high-end applications. Chairman and General Manager Liang Xiaobin recently introduced during the North Exchange IPO roadshow that in the high-technical automotive paint market, the company’s products have gradually replaced international brands such as Toyo Aluminum and ECKART, becoming a supplier of aluminum pigments for A-SHIELD automotive original paint and entering the supply chains of PPG and Nippon Paint for automotive parts coatings.

“With the acceleration of domestic manufacturing upgrades and supply chain independence, as an industry leader, the company is expected to further expand its market share in automotive, 3C, and high-end coatings, speeding up import substitution,” Liang Xiaobin said.

Against this backdrop, Zuxing New Materials has maintained steady growth in recent years. During the reporting period, revenue increased from 629 million yuan in 2022 to 707 million yuan in 2024. In 2025, revenue is projected to reach 799.6 million yuan, a year-on-year increase of 12.61%; net profit attributable to shareholders reached 81.83 million yuan, up 39.36%, demonstrating robust expansion.

Focus on High-End Investment to Accelerate Import Substitution

The funds raised from this listing on the Beijing Stock Exchange will mainly be used for the “Annual Production of 5,000 Tons of High-Purity Microfine Spherical Aluminum Powder Project,” the “Annual Production of 1,000 Tons of High-Performance Aluminum Pigments for Powder Coatings Project,” and the “High-Performance Aluminum Silver Paste Technology Renovation Project.”

Through these projects, the company aims to further extend into mid-to-high-end downstream applications, seize emerging market opportunities, enhance product added value, and strengthen overall competitiveness.

For example, the high-performance aluminum pigment project aims to expand capacity to meet the growing demand from automotive parts, construction materials, furniture, and tools markets, especially under the influence of the national “dual carbon” policies. The prospectus states that in recent years, powder coatings have become one of the fastest-growing segments in the coating industry, with aluminum pigments being an important functional pigment in powder coatings. Due to complex production processes, most of the early supply relied on imports. The company’s expansion will meet the demand of mid-to-high-end downstream markets, accelerate import substitution, and capture market share.

Meanwhile, the company’s long-term accumulation of high-quality customers provides strong support for absorbing new capacity. In the field of high-purity microfine spherical aluminum powder, the company has established stable cooperation with leading downstream clients such as Dongyangguang and Hongliang New Materials. Their capacity expansion plans will generate sufficient market demand for the company’s products. In the aluminum pigment sector, the company has formed stable partnerships with well-known domestic and international companies such as Nippon Paint, BASF, Matsui Co., Ltd., and Huahui Coatings, laying a solid foundation for business expansion.

This successful listing will mark an important milestone in Zuxing New Materials’ development. With the support of the capital market, the company will further strengthen its technological advantages, expand capacity, deepen market development, and continue to lead innovation and growth in the aluminum pigment industry, writing a new chapter of high-quality development for domestic new materials enterprises.