The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Application Proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Application Proof. Application Proof of Red Avenue New Materials Group Co., Ltd. 彤 程 新 材 料 集 團 股 份 有 限 公 司 (A joint stock company incorporated in the Peopl ...

Core Viewpoint - The article discusses the upcoming IPO of Zhejiang Xinhengtai New Materials Co., Ltd., which aims to raise 380 million yuan for projects related to micro-porous foaming materials and IXPE production line upgrades, highlighting the growing demand for lightweight and sustainable materials in various industries [1][2]. Group 1: Company Overview - Zhejiang Xinhengtai New Materials Co., Ltd. focuses on the research, development, manufacturing, and sales of functional high polymer foaming materials, including PE Foam, IXPE, and MPP [6]. - The company was established in 2008 and is recognized as a national-level "little giant" enterprise specializing in innovation [5]. Group 2: Financial Performance - In 2025, Xinhengtai expects to achieve a revenue of 806 million to 844 million yuan, representing a year-on-year growth rate of 6.60% to 11.63%, primarily driven by the demand for MPP products in the new energy battery sector [3]. - The company reported revenues of 530 million yuan, 679 million yuan, 774 million yuan, and 384 million yuan from 2022 to the first half of 2025, with net profits of approximately 39.71 million yuan, 93.35 million yuan, 82.04 million yuan, and 46.83 million yuan respectively [9]. Group 3: Production Capacity and Utilization - In 2024, the company had a production capacity of 30,000 cubic meters, producing 27,400 cubic meters and achieving a sales volume of 29,200 cubic meters, resulting in a production-sales rate of 106.50% [4]. - The capacity utilization rates for PE Foam and MPP products from 2022 to the first half of 2025 were 69.23%, 76.27%, 76.23%, and 68% for PE Foam, while MPP maintained nearly 100% utilization [10]. Group 4: Product Applications and Market Demand - MPP products are utilized in various applications, including new energy battery cell cushioning, 5G communication microwave antenna covers, and other high-demand sectors [2]. - The company has established a strong market presence, supplying major brands such as CATL, BYD, Geely, and Huawei, with MPP products being a significant contributor to its revenue growth [3].

Market Overview - The current market is experiencing record highs with the S&P and NASDAQ reaching new peaks, alongside gold prices also hitting record levels [1] - The economic backdrop remains strong with ongoing growth in GDP and other areas, while inflation has decreased to 2.9% from higher levels [3][4] - Liquidity in the market is robust, supported by significant deficit spending and a large M2 money supply [4][5] Investment Strategy - The investment approach focuses on three main factors: liquidity, inflation, and growth, which guide portfolio decisions [3] - There is a shift towards incorporating both growth and value stocks in the portfolio, with a particular emphasis on recovery value stocks [7][8] Stock Picks - **Dow Chemical**: Selected for its significant price drop (from around $60 to $24), strong balance sheet, and high dividend yield of 5%, making it a recovery value stock [7][8] - **Circle**: Important in the crypto and stablecoin space, with potential for growth as government support increases. The stock has dropped from $250 to $120, presenting a buying opportunity [10][12] - **Bullish**: Recently listed and currently trading lower, it has potential due to its association with notable figures in the industry and its role in crypto trading [15][17] - **Space Mobile**: Competing with Starlink, it has secured contracts and FCC approvals, showing growth potential despite being capital intensive [22][24] - **GitLab**: Positioned as a cost-efficient platform for enterprises, it is expected to benefit from the rising demand for AI software development, despite competition from GitHub [26][29]

Group 1 - The Longzhong Municipal Political Consultative Conference organized a "Financial Supermarket" and a financial enterprise docking meeting to address financing challenges faced by local enterprises [1][3] - The meeting included representatives from 14 enterprises in Xiangyuan County, discussing their development status, financing needs, and financial services [3] - Agricultural Bank and China Transportation Bank introduced various credit financing products, emphasizing their commitment to support local industries and increase agricultural loan supply [3] Group 2 - The conference highlighted the importance of establishing a supply chain information sharing mechanism to enhance collaboration among upstream and downstream enterprises [3] - Companies were encouraged to adapt to market trends, optimize product costs, and improve core competitiveness [3] - Post-meeting, a delegation visited several companies to gather information on production processes and advised them to leverage favorable policies to enhance management and innovation [4]

Core Viewpoint - The automotive industry is increasingly adopting bio-based materials to promote sustainability and environmental protection, with applications in various vehicle components such as seats, dashboards, and tires [1][2]. Group 1: Current Trends in Bio-based Materials - The demand for bio-based materials in the automotive sector is rising, with a focus on engineering plastics, composites, polyurethanes, and resins [1]. - The upcoming Bio-based 2025 conference will address the sustainable strategies of automotive companies and the current state of bio-based material applications [2]. Group 2: Bio-based 2025 Conference Details - The Bio-based 2025 conference will take place from May 25-27, 2025, in Shanghai, featuring over 100 brands from various sectors, including automotive, seeking sustainable solutions [7][9]. - Notable participants include major automotive manufacturers and material solution providers, who will share insights on bio-based material needs and sustainable practices [2][11]. Group 3: Featured Activities and Discussions - The conference will include a dedicated forum on sustainable applications in the automotive sector, with presentations from industry experts on innovative bio-based materials [6]. - There will be networking opportunities for brands to connect with solution providers during the event, focusing on material needs across different industries [8][13].