Jingtong New Materials Group Co., Ltd. (referred to as "Jingtong New Materials"), a dual champion in the PVC decorative materials export market, formally submitted its listing application to the Main Board of the Hong Kong Stock Exchange on May 27, with CICC serving as the sole sponsor.
According to the prospectus, Jingtong New Materials ranked first in China in 2025 for both total export value of PVC decorative materials and export value to Europe. Its products are sold in over 60 countries and regions worldwide, solidifying its position as a leading industry player in global expansion. However, behind the impressive market share, the company faces severe challenges, including a significant slowdown in revenue growth and a sharp decline in gross margin in the North American market. As the green building materials industry accelerates its development, market attention is focused on whether Jingtong New Materials can leverage the capital market to address growth bottlenecks and optimize its global layout.
Behind the 22% compound profit growth, concerns emerge regarding the sharp revenue slowdown and high regional concentration.
Jingtong New Materials is a leading PVC decorative materials enterprise driven by ODM/OEM models and deeply rooted in overseas markets. During the reporting period from 2023 to 2025, the company achieved steady profit growth for three consecutive years, benefiting from its leading industry position and economies of scale. On the other hand, a sudden slowdown in revenue growth, over-reliance on a single market, and potential raw material cost pressures constitute significant underlying concerns.
From the revenue perspective, Jingtong New Materials achieved continuous scale expansion during the reporting period, but signals of sharply diminishing growth momentum cannot be ignored. The company's revenue climbed from RMB 1.598 billion in 2023 to RMB 2.219 billion in 2024, a year-on-year increase of 38.9%, demonstrating strong market expansion capabilities and order acquisition efficiency. However, entering 2025, revenue growth rate plummeted to 3.9%, with annual revenue reaching only RMB 2.307 billion, representing a three-year compound annual growth rate (CAGR) of approximately 20.2%.
By product segment, SPC products remained the largest revenue contributor, generating RMB 1.605 billion in 2025, accounting for 69.5% of total revenue, although their growth rate has noticeably slowed. While starting from a smaller base, EPC products showed high growth potential with a three-year CAGR of 68.3%, increasing from RMB 56 million to RMB 178 million. From a structural perspective, the company remains overly reliant on a single product category in the short term, indicating a need for further optimization and diversification of its product portfolio.
Analyzing the geographical structure, Jingtong New Materials exhibits high market concentration risk. The European market has long held absolute dominance, contributing RMB 1.969 billion in revenue in 2025, accounting for 85.3% of the total. Revenue from the North American market increased from RMB 70 million in 2023 to RMB 239 million in 2025, raising its share to 10.4%, yet still far from forming an effective regional diversification pattern. This highly concentrated regional revenue structure makes the company's performance highly susceptible to fluctuations in European macroeconomic conditions, environmental policy changes, and geopolitical factors, resulting in relatively weak risk resistance. The Chinese mainland market accounts for only about 0.9%, with revenue under RMB 20 million, indicating that the company's brand recognition and channel development in the domestic market are still in their infancy, leaving the vast potential of the local market largely untapped.
Regarding profitability, the company overall showed a stable and improving trend, but concerns also coexist. From 2023 to 2025, the company's comprehensive gross margin was 35.9%, 37.0%, and 36.8% respectively, fluctuating within the range of 35% to 37%, indicating strong resilience in cost control and pricing strategies. However, the structural divergence in profit quality warrants caution: while the overall gross margin trended stable, the gross margin in North America experienced a significant decline. Public reports indicate a notable drop in gross margin in North America, positioned as the second growth engine, with severe regional profitability divergence constituting a potential profit structure risk.
Analyzing the cost side, the cost of sales increased from RMB 1.024 billion in 2023 to RMB 1.457 billion in 2025, with the growth rate significantly higher than that of revenue. Particularly in 2024, the cost increased by 36.6% year-on-year, essentially in sync with revenue growth during the same period, suggesting that the company has not yet demonstrated significant cost leverage effects during its scale expansion.
Regarding period expenses, the growth rates of various expenditures continued to outpace revenue growth, persistently squeezing profit margins. Selling and distribution expenses increased from RMB 169 million in 2023 to RMB 260 million in 2025, a rise of approximately 54% over three years, far exceeding the revenue growth during the same period. Administrative expenses were more pronounced, surging from RMB 72.13 million to RMB 141 million, nearly doubling, with an average annual CAGR of 40.0%. This phenomenon may be related to one-off professional service fees incurred during the preparation for the Hong Kong listing and the expansion of the management structure. However, at the financial data level, the trend of period expenses growing faster than revenue directly reduced marginal profit per unit of income, hindering the improvement of net profit margin.
The growth rate of the main product category has plummeted, while the profitability of new products remains unstable.
During the reporting period from 2023 to 2025, the SPC category, with the highest revenue share, consistently maintained absolute dominance at 72.3%, 71.6%, and 69.5% respectively. Corresponding revenue increased from RMB 1.155 billion to RMB 1.605 billion, with a three-year compound growth rate of approximately 17.8%. SPC flooring, formed with a limestone powder and PVC composite material to create a high-density rigid core layer, offers excellent dimensional stability and waterproof performance, making it one of the most in-demand technological pathways in the global PVC resilient flooring market. Jingtong achieved large-scale mass production in this category early on, deeply binding with overseas large building materials retailers through the ODM model, forming significant first-mover advantages and economies of scale.
Notably, however, the SPC revenue share declined for two consecutive years, and its year-on-year growth rate in 2025 plummeted to approximately 1.0%, with revenue volume almost flat compared to 2024. This signal suggests that the main product may have entered a stage of stock competition in key export markets (especially Europe), and the logic of "total volume expansion" relying solely on a single major category is facing diminishing marginal returns.
Against the backdrop of slowing SPC growth, the growth of the LVT and EPC categories has become an important observation window for optimizing the company's revenue structure. The LVT category, representing traditional resilient flooring, saw revenue increase from RMB 352 million in 2023 to RMB 488 million in 2025, with a compound growth rate of about 17.6%, and its revenue share remained stable between 21% and 22%, making it the company's second-largest revenue source. A more positive change occurred on the LVT gross margin front: from 2023 to 2025, LVT gross margin continuously climbed from 31.9% to 36.4%, a cumulative increase of 4.5 percentage points over three years, indicating significant improvement in profit quality for this traditional category through material process enhancements and product premiumization.
The EPC category demonstrated the strongest growth momentum, with revenue leaping from RMB 56.26 million in 2023 to RMB 178 million in 2025, achieving a compound growth rate as high as 77.9%, and its revenue share increasing from 3.5% to 7.7%. EPC utilizes a foamed polymer core layer, making it lighter and offering a softer underfoot feel compared to SPC, positioning it between traditional LVT and rigid SPC in the market. The rapid volume increase of this category validates the company's efficiency in new product introduction and market responsiveness.
However, caution is warranted: after reaching a high of 38.3% in 2024, the EPC gross margin plummeted to 31.3% in 2025, a fluctuation of 7 percentage points. This sharp decline may stem from intensified pricing competition during the new product volume expansion phase or the initial scale effects not yet being fully realized. Regardless, whether EPC can restore and stabilize its profitability while expanding its scale will be key to determining if it can become a genuine second growth curve.
Furthermore, compared to technologically leading enterprises in the industry, Jingtong still lags in product iteration depth. Taking Tianzhen Co., Ltd. as an example, that company has continuously upgraded from traditional LVT to WPC, SPC, MGO, and even new composite flooring like RPET, and has taken the lead in achieving mass production and bulk order delivery of RPET flooring. Through high-intensity R&D investment and overseas production capacity布局 (Vietnam, Thailand, USA), Tianzhen effectively avoids tariff barriers and leads the industrial process of new material pathways. In contrast, Jingtong's R&D expenses as a percentage of revenue decreased from approximately 4.7% to about 3.6% during the reporting period. During a phase of rapid industry technological evolution, the marginal weakening of R&D intensity may undermine its first-mover advantage in high-end new products (such as those with higher environmental standards, lighter and thinner profiles, or functional composite flooring).
In summary, the business growth logic of Jingtong New Materials essentially represents an evolution process where "scale dividends gradually give way to structural dividends." SPC, as the cash cow category, contributes a stable revenue base and profit foundation, but its incremental space has noticeably narrowed. LVT has achieved continuous improvement in profitability through quality upgrades, completing a revaluation of the traditional category. EPC is currently in an exploration phase of volume expansion, with significant gross margin fluctuations indicating its business model is not yet fully mature. The company's business competitiveness at the current stage is more reflected in the long-term binding supply relationships with overseas core customers under the ODM model and the ability to smooth out single-product cycle fluctuations through a multi-category portfolio. However, to break through the structural bottlenecks of slowing revenue growth and reliance on a single market, Jingtong needs to adopt a more aggressive布局 in dimensions such as product innovation intensity, speed of incubating high-end new products, and global production capacity configuration.