Hz info:In October 2025, Sunvim Group Co., Ltd.'s controlling subsidiary, Shandong Sunvim Xuanwei New Material Technology Co., Ltd., was successfully included in the Ministry of Industry and Information Technology's seventh batch of National Specialized, Refined, Unique, and New 'Little Giant' Enterprises list. It was also selected for the 2025 Shandong Provincial New Material Leading Enterprises Cultivation Repository. This dual recognition not only certifies Sunvim Xuanwei's technological leadership in its niche segment but also provides crucial support for Sunvim Shares' strategic transformation.

Building a Solid Foundation for Technological Innovation and Securing National Qualifications

Previously, in September 2025, Sunvim Xuanwei was recognized by the Shandong Provincial Department of Industry and Information Technology as a provincial "One Company, One Technology" R&D Center, further demonstrating the company's technical strength in the field of functional coating materials.

Behind this series of achievements lies the core support of the high-level R&D team built by the company. Sunvim Xuanwei has assembled a robust scientific research team led by renowned professors and experts in the industry. The team includes 1 Taishan Industry Leadership Talent, 2 Taishan Scholars, comprising 5 professors, 8 associate professors, 10 senior engineers, and over 10 doctors and postdoctoral researchers. This professional team has established deep cooperative relationships with several well-known universities, jointly undertaking Shandong Province's Major Technological Innovation Engineering Projects, forming a powerful industry-university-research collaborative innovation system. In the first half of 2025, the company applied for 2 new invention patents, obtained authorization for 6 invention patents, and successfully transferred 2 patents. To date, the company has cumulatively applied for more than 50 patents and has been granted nearly 20 patents, establishing a comprehensive intellectual property protection system.

In the field of functional coating materials, Sunvim Xuanwei has achieved several technological breakthroughs certified by authoritative authorities. Among them, the Thermal Shielding Energy-Saving Cooling Coating Material was appraised as reaching domestically leading levels. It can significantly reduce surface temperatures of objects and has successfully broken foreign technological monopolies, winning the Shandong Provincial Science and Technology Progress First Prize. The Marine Heavy-Duty Anti-Corrosion Coating Material features capabilities for painting on damp and rusty surfaces and underwater curing construction, achieves zero VOC emissions, fills a domestic gap, and won the Shandong Provincial Science and Technology Progress Second Prize. These innovative achievements have earned the company over 20 provincial and ministerial-level science and technology awards, fully reflecting its technological leadership.

While deepening industry-university-research cooperation, Sunvim Xuanwei actively expands industrial chain collaboration. On April 10, 2025, the "Functional Coating Material Production Base and Collaborative R&D Application Center", jointly built by the company and Zhongchantou Industrial Development (Shandong) Group Co., Ltd., was officially inaugurated. The two parties engaged in in-depth cooperation around resource integration, technological R&D, and high-end market layout. This collaboration will further strengthen Sunvim Xuanwei's capabilities in tackling key technologies and industrializing transformation in areas such as special protective coatings and functional new materials.

According to the 2025 semi-annual report disclosure, the capitalized investment balance for Sunvim Xuanwei's two core coating material projects—Heat Insulation Coating Material for high-temperature surface construction and Self-Repairing Long-Lasting Anti-Corrosion Coating Material for marine engineering—reached a combined RMB 3.02 million. While continuously receiving government funding support, the company, as a high-tech enterprise, enjoys a preferential corporate income tax rate of 15%, providing strong policy support for technological innovation. Furthermore, the parent company, Sunvim Shares, demonstrated a strong emphasis on R&D, with overall R&D expenses reaching RMB 18.71 million in the first half of 2025, laying a solid foundation for continuous product iteration and technological progress.

Enhancing Industrial Base Construction and Strengthening Supply Capacity

Sunvim Xuanwei is actively advancing a multi-level production capacity layout and has currently established a 100,000-ton special coating material production base. Among this, the first-phase 50,000-ton dual-use (military and civilian) functional coating material project officially commenced operation in August 2022 and is currently in a phase of steadily ramping up capacity.

To continuously enhance market competitiveness, the company plans to invest in the construction of the "Special Polymer and Marine Environmental Protection Long-Lasting Anticorrosion and Antifouling Coating Material Research and Industrialization Project". This project is an expansion based on existing capacity, with a total area of approximately 6,436 square meters. Upon full completion, it will form an annual comprehensive production capacity of 3,960 tons of intermediate products, 20,000 tons of solvent-based coatings, 15,000 tons of water-based coatings, and 5,000 tons of powder coatings. This will further enhance the company's competitiveness in the high-end coating materials field, optimize the product structure, and strengthen the industrial layout in strategic emerging sectors such as marine engineering and special protection.

It is reported that the current capacity utilization rate for Sunvim Xuanwei's Phase I project is approximately 50%. This is primarily because the company proactively strengthened accounts receivable management to control payment collection risks, consequently compressing some orders. As subsequent projects gradually come online and market demand further releases, capacity utilization is expected to steadily increase, laying a solid foundation for the company's performance growth.

Since its establishment in 2021, Sunvim Xuanwei, as a key vehicle for Sunvim Shares' expansion into the new materials sector, has been deeply implementing the dual-core business development strategy of "Home Textiles + New Materials", providing strong support for the parent company's strategic transition from traditional home textiles to the new materials field.

Breaking into High-End Application Fields and Optimizing Business Structure

Sunvim Shares maintained steady performance growth in the first half of 2025, achieving operating revenue of RMB 2.587 billion, net profit attributable to shareholders of RMB 246 million (a year-on-year increase of 10.92%), and net profit after deducting non-recurring gains and losses of RMB 250 million (a year-on-year increase of 15.71%). Basic earnings per share were RMB 0.26.

In the coating materials segment, the company actively expanded its market and optimized channel construction, adding more than 190 new customers in the first half. By strengthening cash flow management, its payment collection capability significantly improved, laying the groundwork for sustainable business development. During the reporting period, this business segment achieved operating revenue of RMB 97.7106 million, a year-on-year increase of 18.97%, with a gross profit margin of 9.28%, a decrease of 0.84 percentage points compared to the same period last year.

Sunvim Xuanwei achieved a series of breakthroughs in high-end application fields. The company obtained IATF 16949 Automotive Industry Quality Management System Certification and successfully won the bid as the top-ranked supplier for a coating project for 100,000 commercial vehicles of a renowned new energy vehicle brand. In the ship coating sector, the company obtained the Factory Recognition Certificate from the China Classification Society in June, passing certification for 7 ship coating products in one go and receiving its first order in the same month the certificate was awarded.

In August 2025, Sunvim Xuanwei participated in the Weifang City "Shandong Good Brands on the Industrial Chain" High-End Chemical Industry Chain Press Conference, fully showcasing its brand strength in the high-end chemical materials field. Recently, the company successively won bids for the Shandong Port Group's domestic paint procurement project, securing both the "Paint for Port Machinery" and "Ship Paint" lots, demonstrating core customers' high recognition of the company's products and solutions.

The company has clearly identified shipbuilding, automotive, marine engineering, and the military industry as key future development directions. According to business planning, the marine engineering sector is expected to account for 30% of coating material revenue, with automotive and shipbuilding each accounting for 20%, and the military business accounting for 10%. In terms of profitability, the gross profit margin for the marine engineering and automotive sectors is expected to reach 40%, while the shipbuilding sector's gross profit margin should remain in the 30%-40% range.

According to the investor relationship activity record released by Sunvim Shares on August 21, the company is actively pursuing the acquisition of the final qualification among the Four Military Certifications. Sunvim Xuanwei's coating materials business currently has order visibility of about two months. With the continuous expansion into new business areas, the order scale is expected to achieve further growth.