Origin Materials (NasdaqCM:ORGN) Q3 2025 Earnings Call November 13, 2025 05:00 PM ET Speaker2Thank you for standing by. This is the conference operator. Welcome to the Origin Materials third quarter 2025 earnings call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then one on your telephone keypad. Should you need assistance during the confer ...

Core Insights - The automotive printing ink market is experiencing stable growth driven by the upgrading of the automotive industry and changing consumer demands, with a projected market size of $692 million by 2030 and a CAGR of 6.2% [4][5]. Market Overview - Automotive printing inks are specialized inks used for marking, decorating, and protecting automotive components, featuring strong weather resistance, high adhesion, excellent abrasion resistance, and chemical resistance [1]. - The market is primarily driven by the trends of electrification, intelligence, and lightweighting in the automotive sector, leading to increased demand for high-performance inks, particularly in terms of weather resistance, adhesion, and environmental performance [2][3]. Key Drivers - The aesthetic upgrade and personalization trends in automotive interior and exterior design are the primary drivers, with modern vehicles treating interiors as a "third living space," necessitating inks that can adhere to complex surfaces and provide diverse visual effects [2]. - The shift towards lightweight materials such as engineering plastics and carbon fiber composites is pushing ink technology innovation, as these new materials present challenges for ink adhesion [3]. - The integration of functional requirements beyond decoration, such as conductivity and durability, is becoming a significant growth engine for automotive inks [3]. Environmental Regulations - Global environmental regulations are increasingly stringent, pushing the ink industry to transition from traditional solvent-based inks to more eco-friendly options like water-based and UV-cured inks [4]. Competitive Landscape - The automotive printing ink market is characterized by a few leading international companies dominating the high-end market, while regional players focus on cost-effective specialized inks [10][12]. - Emerging innovative companies are focusing on 3D printing inks and environmentally friendly solvent inks, aligning with trends in electric vehicles and in-car displays [11]. Industry Chain - The industry chain is divided into upstream (raw materials), midstream (ink formulation and production), and downstream (application and integration in automotive manufacturing) [6][7][8][9]. - Upstream suppliers provide essential chemical raw materials, while midstream focuses on developing formulations that meet stringent automotive standards, and downstream involves the application of inks in various automotive components [6][7][8][9].

Core Insights - The Düsseldorf International Plastics and Rubber Exhibition is the largest and most influential event in the global rubber and plastics industry, taking place until the 15th of this month, with approximately 3,200 exhibitors from 66 countries and regions [1][3]. Group 1: Event Overview - The exhibition is held every three years and is regarded as a "barometer" for the industry, focusing on cutting-edge topics such as artificial intelligence, circular economy, and sustainable materials [3]. - This year's exhibition has set historical records in both exhibition area and number of exhibitors, with Chinese companies increasing from 310 to approximately 460, a nearly 50% rise, making them the second largest group after Germany [3]. Group 2: Chinese Companies' Contributions - Chinese companies are not only increasing in number but also in quality, showcasing advanced technologies, with some making global debuts at the exhibition [5]. - The focus of Chinese enterprises on the circular economy is seen as central to sustainable development in the plastics and rubber industry, positioning China as a key player in driving industry growth and setting benchmarks for sustainability [5]. Group 3: Innovations and Global Perception - The exhibition features a concentration of "high-end, diversified, and low-carbon" developments from Chinese companies, which have garnered widespread attention and high praise from the international industry [7]. - French exhibitors noted that the Chinese industry is not only impressive in scale but also stands out in innovation and new product development, indicating that China has transitioned from a participant to a leader in new technologies [9].

Core Viewpoint - The article highlights significant advancements in the production of bio-based acrylic acid, particularly through the innovative fermentation technology developed by Industrial Microbes, which utilizes ethanol as a renewable feedstock, leading to cost reductions and sustainability in chemical manufacturing [4]. Group 1: Bio-based Acrylic Acid Production - Industrial Microbes has achieved a breakthrough in sustainable chemical manufacturing by scaling up the production of 100% bio-based high-purity acrylic acid using advanced fermentation technology [4]. - The production process avoids toxic solvents and complex extraction steps, which contributes to lower costs compared to traditional methods [4]. - The market for bio-based acrylic acid is expected to grow significantly, with projections estimating a market size of $18 billion (approximately 127.9 billion RMB) by 2030 [6]. Group 2: Applications of Bio-based Acrylic Acid - Bio-based acrylic acid has a wide range of applications across various industries, including personal care, cosmetics, eco-friendly paints, coatings, and adhesives for electronics and automotive sectors [5]. - In personal care, it is a key raw material for producing superabsorbent polymers (SAP) used in diapers, while in cosmetics, it is increasingly favored as a plant-based, natural ingredient [5]. Group 3: Technological Pathways for Production - There are four main technological pathways for producing bio-based acrylic acid, each with unique advantages and challenges: - The 3-hydroxypropionic acid (3HP) pathway is one of the fastest progressing routes, utilizing microbial fermentation of sugars or vegetable oils [8]. - The lactic acid dehydration method is widely researched but faces challenges such as catalyst deactivation and selectivity [8]. - The ethanol conversion pathway developed by iMicrobes shows promise by modifying E. coli to utilize ethanol, leading to high accumulation of poly(3-hydroxypropionic acid) [8]. - The glycerol dehydration oxidation method uses glycerol, a byproduct of biodiesel, as a feedstock, which has lower raw material costs but requires high-performance catalysts [8]. Group 4: Industry Participation - Several companies are actively developing bio-based acrylic acid technologies and advancing commercialization, including traditional chemical giants like BASF, Arkema, and Toray, as well as Chinese company Ningbo Huanyang Technology [9].

Core Viewpoint - BASF has entered into a strategic innovation partnership with Zhejiang University Quzhou Research Institute to promote the development of sustainable materials and processes, focusing on advanced materials, industrial ecology, molecular manufacturing, and bio-based chemicals [2][4]. Group 1: Strategic Collaborations - The partnership aims to conduct collaborative research and innovation in key technologies and standards, as well as explore cooperation in pilot testing, analysis, and talent cultivation [2]. - BASF has previously collaborated with various institutions, including the establishment of a biodegradable lubricant joint laboratory with Shandong Ocean University, focusing on marine clean energy applications [4]. - In June 2023, BASF signed a strategic cooperation framework agreement with South China University of Technology, further expanding its network in sustainable materials research [5]. Group 2: Sustainable Material Innovations - BASF has made significant strides in sustainable materials, including a recent collaboration with Arkema and AkzoNobel to reduce the carbon footprint of AkzoNobel's Interpon brand powder coatings by 40% [5]. - The company is a pioneer in the bio-based industry, with a focus on bio-based and biodegradable materials, having established a joint laboratory with the Chinese Academy of Sciences in 2021 [5]. Group 3: Bio-based Chemicals Market - BASF is the largest global producer of 1,2-pentanediol, with an annual production capacity of approximately 335,000 tons, including an 80,000-ton project in Zhanjiang [6]. - The competition in the 1,2-pentanediol market is intensifying, but few companies can produce bio-based variants, with BASF and LG Chem being notable players [7]. - In addition to bio-based 1,2-pentanediol, BASF has achieved breakthroughs in other bio-based products, including a transition to bio-based ethyl acrylate and the launch of a zero carbon footprint superabsorbent polymer [9].

Core Insights - H&M has opened its largest flagship store in South China, located in Shenzhen, showcasing a modern store design and a commitment to making fashion accessible to the public [1][2] - The opening of two stores in Shenzhen reflects H&M's strategic focus on the Greater Bay Area and its ongoing expansion in the Chinese retail market [1][3] - The brand's CEO for Greater China emphasized the importance of the Greater Bay Area's economic vitality and fashion consumption trends for H&M's growth strategy in China [1] Store Design and Experience - The flagship store features a spacious 1,764 square meters layout with a minimalist design, utilizing natural and sustainable materials to convey a modern fashion attitude [2] - Innovative design elements include comfortable fitting rooms with soft lighting, large mirrors, and dedicated relaxation areas, creating an immersive shopping experience [2] Opening Promotions - During the opening event from August 28 to August 31, H&M offered various promotions, including discounts for purchases over specific amounts and exclusive member benefits [3] - Special interactive experiences were available for customers, such as a game machine and a lottery for exclusive gifts with qualifying purchases [3] Product Offerings - The store presented the 2025 Summer Collection, featuring bohemian styles with intricate details, and announced the upcoming 2025 Autumn/Winter Collection set to launch on September 9 [4] - The Autumn/Winter Collection blends retro elements from the 1970s and rebellious styles from the 1990s, showcasing a mix of classic and modern fashion influences [4] Future Outlook - H&M aims to leverage the growth potential of the Greater Bay Area by offering stylish yet affordable products and enhancing the shopping experience for a broader consumer base [4] - The company plans to continue expanding its presence in the Chinese market, focusing on upgrading more physical stores to become a leading force in fashion trends [4]

Core Viewpoint - Evonik has announced the expansion of its Edgetek recycled polycarbonate (REC PC) product line to meet the growing demand for sustainable materials in the electronics and electrical industry across Europe, the Middle East, and Africa [1] Group 1: Product Expansion - The new Edgetek REC PC solutions include grades with post-consumer recycled (PCR) content ranging from 35% to 98%, significantly increasing the recycled content compared to previous grades which had 20% to 70% [1] - All products in the expanded Edgetek REC PC line maintain mechanical performance comparable to virgin polycarbonate [1] Group 2: Market Compliance and Applications - The products comply with REACH and RoHS standards and are now available for sale in the European market [1] - The applications for these materials include exterior or structural components for electronic and electrical parts that require durability in harsh environments, such as device housings and sockets [1] Group 3: Industry Trends - Sustainability is identified as a core driver in the electronics and electrical industry, with Evonik's latest solutions aimed at helping customers achieve environmental goals without sacrificing performance [1]

Core Viewpoint - Algenesis Labs has launched the world's first 100% plant-based isocyanate, Bio-Iso™, marking a revolutionary breakthrough in the polyurethane chemistry field, which aligns with global sustainability goals and meets increasing environmental regulations and consumer demand for safe, eco-friendly materials [2][4]. Production and Capacity Expansion - Algenesis Labs has commenced production at its pilot plant for Bio-Iso™ and is focused on expanding its production capacity in San Diego, California, while seeking strategic partners for global industrialization [4]. - The company has released a technical data package detailing the performance of Soleic® TPU materials made with Bio-Iso™ [4]. Environmental Impact - The introduction of Bio-Iso™ aims to break the cycle of environmental pollution and hazardous processes associated with traditional petroleum-based isocyanates, as it eliminates fossil carbon and phosgene from the supply chain [4][5]. Product Development - Algenesis Labs has developed bio-based polyols, bio-based polyurethane foams, and bio-based thermoplastic polyurethanes (TPU) from algae and non-food plants, marketed under the B2B brand Soleic® [5]. - The new Bio-Iso™ combined with bio-based polyols can produce 100% bio-based TPU, with several products already certified by the USDA as bio-based [6][10]. Product Certification and Applications - The Soleic® TPU products have varying levels of bio-based content, with TPU 1295A at 59%, TPU 1270A at 76%, TPU 1260D at 56%, and polyol LV-02 at 100% [6][10]. - Soleic™ bio-based polyols are utilized in soft polyurethane foam applications, initially used in flip-flops and later in Blueview shoes [7]. Strategic Partnerships - Algenesis is expanding its Soleic™ product line into breathable waterproof textiles and injection-molded products, having signed a collaboration agreement with Trelleborg for TPU coating on fabrics and partnered with RhinoShield for phone case production [9].

Funding and Expansion - Plush, a DTC personal care brand, has raised 470 million INR (approximately 4.7 million USD) in its latest funding round, led by Rahul Garg with participation from several strategic investors [3] - The funds will be used to expand offline operations, enhance brand building, and increase market influence [3] - Plush, founded in 2019, focuses on women's care and personal care products, including menstrual care, intimate health, hair removal, and personal hygiene [3] Corporate Control and Shareholding - The Persson family, through their investment tool Ramsbury, has increased their stake in H&M Group from 35.5% to nearly 64% over the past nine years, now controlling about 70% of the capital and 85% of the voting rights [6] - This increase in shareholding indicates the family's intent to regain more control over the company [6] Acquisitions and Strategic Moves - Kering Eyewear has announced the acquisition of Italian manufacturer Lenti from Safilo, which specializes in mold forming and surface treatment for various applications [8] - The acquisition aims to enhance Kering Eyewear's internal R&D capabilities for developing innovative high-performance Italian-made sunglasses [8] - Coupang Group is integrating Farfetch with R.Lux to enter the luxury goods market in South Korea, leveraging local services and operations to expand Farfetch's business [10] Market Entry and Expansion - Didi's brand 99Food has launched its delivery service in Goiânia, Brazil, marking its return to the Brazilian market after a previous exit [12] - Didi has a strong foundation in Brazil, with approximately 700,000 active riders and 50 million active users across over 3,300 towns [12] - Luckin Coffee plans to open a store in downtown Manhattan, New York, as part of its international expansion strategy [15][16] Sustainability Initiatives - Chanel has launched Nevold, a B2B center focused on developing circular materials to promote sustainability in the luxury goods and broader apparel industry [18] - The project aims to transform waste textiles into new materials, enhancing the economic competitiveness of recycled materials [18] Market Expansion Plans - Korean fashion e-commerce platform Musinsa plans to enter the Chinese and Japanese markets by opening physical stores as part of its global expansion strategy [21] - Musinsa currently offers around 8,000 Korean fashion brands and aims to tap into China's vast consumer market [22] Corporate Developments - Authentic Brands Group has established its Asia-Pacific headquarters in Shanghai, covering nearly 2,000 square meters to support business expansion in the region [24] - Woolrich has appointed its CFO Lorenzo Flamini as the new CEO, following a strategic partnership with a local operator for its business in Greater China [27]

Core Insights - FPHLTH Investment Inc. has successfully acquired full control of Hong Kong's China Feige Investment Holdings Ltd. and aims to integrate the FPHLTH and Feige Medical brands to expand globally, focusing on outdoor sports goods and medical devices [1][14] Company Overview - FPHLTH has a forward-looking investment strategy, focusing on high-performance, lightweight outdoor sports equipment and fitness products, while also extending into health-related sectors such as medical aesthetics and wellness [3] - Feige Medical specializes in minimally invasive medical devices and rehabilitation equipment, with core technologies including flexible sensors and AI-driven health monitoring systems [7] Technology and Innovation - FPHLTH utilizes advanced technologies such as AI and lightweight composite materials to enhance product performance and durability, while also employing 3D printing and automation in manufacturing [5] - Feige Medical's products have received international certifications like FDA and CE, ensuring compliance with high market standards [7] Strategic Collaboration - The two brands plan to collaborate on channel expansion, utilizing FPHLTH's global distribution network to promote Feige Medical's portable health monitoring devices [9] - There will be a technological integration where Feige Medical's sensor technology will be incorporated into FPHLTH's outdoor gear, creating a "sports + health" ecosystem [9] Regional Operations - In North America and Europe, FPHLTH will enhance brand influence through partnerships with outdoor influencers and events, while Feige Medical will collaborate with renowned medical institutions to build clinical credibility [11] - In the Asia-Pacific region, the focus will be on leveraging Hong Kong's financial advantages and establishing a smart manufacturing base in Shenzhen [11] Sustainability and ESG Initiatives - FPHLTH aims for 50% of its product line to use recycled or bio-based materials by 2026, while Feige Medical will explore biodegradable medical supplies to reduce waste [12] - Both companies will enhance transparency in sustainability efforts and employee welfare through annual reports and collaboration with ESG research institutions [12] Future Outlook - The acquisition and subsequent collaboration are expected to transform the global outdoor sports and healthcare industries, providing consumers with innovative and high-quality products [14]