Advanced MaterialsModified Plastics & Composites
Nanjing Julong Science & Technology Co., Ltd.
南京聚隆科技股份有限公司
A national high-tech enterprise specializing in R&D, manufacturing, and sales of high-performance modified plastics, thermoplastic elastomers, carbon fiber composite structural parts, and bio-based wood-plastic composites, primarily serving automotive, rail transit, communications, aerospace, and low-altitude economy sectors.
INVESTMENT RATINGB-GRADE
MARKET CAP (USD)加载中...
EXCHANGESZSE
INDUSTRY / SUB-INDUSTRYAdvanced Materials/Modified Plastics & Composites
财务信息
2025 FY经营现金流: $-15.4M
营业收入 (Revenue)$395.7M
净利润 (Net Income)$18.3M
毛利率 (Gross Margin)16.7%
净利润率 (Net Margin)4.6%
PRO RESEARCH REPORT~3000 words
EXECUTIVE SUMMARY / 研报摘要
Nanjing Julong is a leading Chinese modified plastics producer with a dominant position in automotive power-system functional materials. In FY2025, the company delivered revenue of RMB 2.861 billion (+19.82% YoY) and net income of RMB 132 million (+57.05% YoY), driven by core product volume growth, low raw material costs, and breakthroughs in emerging applications. The automotive and new energy vehicle segment accounted for 78.12% of revenue, with per-vehicle polyolefin content reaching 80 kg for top OEMs. The company is aggressively expanding into high-growth verticals: it has developed 8 robot-specific materials (5 in mass production, 3 under validation) covering joints, skeletons, and electronic skin; its carbon fiber composite subsidiary has delivered complete eVTOL airframes and signed a 30-unit electric fixed-wing aircraft contract; and it has established a dedicated team for semiconductor chip packaging materials, currently in early-stage R&D. However, operating cash flow turned negative at RMB -111 million due to a receivable-heavy sales structure, and gross margin declined 1.2 pp to 16.70%. The investment case hinges on whether the company can convert its strong customer relationships and R&D pipeline into scalable, cash-generative revenue in emerging sectors.
1. Company Overview
Nanjing Julong Science & Technology Co., Ltd. (ticker: 300644.SZ) is a China-based advanced materials company listed on the Shenzhen Stock Exchange ChiNext board. Founded in 1999 and listed in February 2018, the company specializes in the R&D, manufacturing, and sales of high-performance modified plastics, thermoplastic elastomers (TPE), carbon fiber composite structural parts, and bio-based wood-plastic composites. Its products are applied across a diverse range of end markets including automotive and new energy vehicles (NEVs), high-speed rail and rail transit, communications and electronics, aerospace and low-altitude economy, healthcare, and green building materials. The company operates under a strategic framework focused on four core themes: 'key components for high-end equipment,' 'new energy and lightweighting,' 'cutting-edge new materials development and application,' and 'civil aerospace and low-altitude economy'. As of FY2025, Nanjing Julong employs 199 R&D personnel and holds 165 authorized patents, including 82 invention patents, with participation in the formulation of 9 national standards. The company is recognized as a national-level 'Little Giant' enterprise specializing in niche markets, and its automotive power-system functional materials have been awarded the title of 'National Manufacturing Single Champion Product'.
2. Business Model & Core Operations
Nanjing Julong operates a diversified materials platform anchored by four product lines. The first and largest is high-performance modified plastics, which includes modified nylon (PA), engineered polypropylene (PP), and plastic alloys. Within this segment, automotive applications dominate, with the company supplying materials for powertrain systems, battery/motor/electronic control systems, and large structural components such as door panels, instrument panels, and front-end frames. A key operational metric is the per-vehicle polyolefin content, which has reached 80 kg for leading domestic and new-energy vehicle OEMs, reflecting deep penetration into vehicle architectures. The second line is thermoplastic elastomers, where the company is accelerating differentiated product development to achieve import substitution, with TPU materials now supplying foot soles and arm guards for quadruped robots. The third is carbon fiber composite structural parts, operated through subsidiary Julong Composites, which designs and manufactures complete airframe structures for UAVs and eVTOL aircraft. The fourth is bio-based wood-plastic composites, primarily exported to Germany, the UK, Australia, and Thailand for outdoor landscaping and building applications. Revenue is heavily concentrated in the automotive and NEV segment, which accounted for 78.12% of total revenue in FY2025, followed by rail transit at 3.67%. This concentration creates both scale advantages in automotive materials and vulnerability to automotive cycle downturns.
3. Market Position & Competition
The Chinese modified plastics industry is highly fragmented but exhibits clear tiering. Nanjing Julong operates in the third tier alongside peers such as Yinxi Technology and Meilian Xincai, with revenue growing from RMB 1.024 billion in 2017 to RMB 2.861 billion in 2025. The undisputed leader is Kingfa Sci. & Tech., whose revenue reached RMB 65.4 billion in 2025, more than 20 times that of Nanjing Julong. Other significant competitors include Guoen Co., Pret Composites, and Dawn Polymer. Despite its smaller scale, Nanjing Julong has carved out defensible niches. It is one of the primary domestic suppliers of modified nylon materials for high-speed rail transit, with products applied in major national projects including the Beijing-Shanghai, Beijing-Guangzhou, and Sichuan-Tibet railways. In the automotive power-system functional materials segment, the company holds a 'National Manufacturing Single Champion' designation, indicating a leading market share in this specific sub-category. The company's competitive strategy emphasizes deep customer integration and co-development rather than pure scale competition, positioning itself as a solutions provider for OEMs' material needs from the design stage onward.
4. AI & Semiconductor Alignment
Nanjing Julong's exposure to AI and semiconductor themes is early-stage and indirect, but strategically noteworthy. The most concrete link is through the embodied AI and robotics supply chain. The company has established a dedicated 'Embodied Intelligence and New Domains' business unit and developed 8 robot-specific modified materials, of which 5 have entered mass production and 3 are under customer validation. These materials cover critical robot components including joints, body skeletons, and electronic skin. TPU materials are already being supplied in small batches for quadruped robot foot soles and arm guards, and the company is jointly developing electronic skin and dexterous hand materials with partners. On the semiconductor front, Nanjing Julong established a dedicated polymer packaging materials team in 2025, focusing on chip packaging materials for integrated circuits. However, the company has explicitly stated that this business remains in the 'preliminary technical exploration and R&D stage' with no customer supply relationships formed as of mid-2026. From an AI infrastructure perspective, the company's communication materials business supplies TPS optical cable sealing gels to leading communication equipment manufacturers, which is adjacent to but not directly levered to AI data center buildout. Investors should treat the AI narrative as a long-dated option rather than a near-term earnings driver.
5. Customer & Regional Analysis
Nanjing Julong's customer base is a core strategic asset. In automotive, the company supplies a broad spectrum of OEMs across three categories: new-energy vehicle makers including BYD, Seres, Li Auto, NIO, XPeng, Xiaomi, and Leapmotor; joint ventures such as SAIC Volkswagen, SAIC General Motors, FAW-Volkswagen, Dongfeng Nissan, GAC Toyota, and Changan Ford; and domestic自主 brands including SAIC Passenger Vehicle, Great Wall Motor, Geely, Chery, Changan Automobile, and FAW. In rail transit, it serves major high-speed rail projects and has participated in product development for the Sichuan-Tibet Railway. In communications and electronics, customers include Black & Decker, TTI, Greenworks, Sumec, and Lenovo. Geographically, East China accounted for 60.80% of revenue in FY2025, reflecting the concentration of automotive and industrial customers in the Yangtze River Delta region. Overseas revenue represented 9.18%, with North China and Central China contributing 8.28% and 8.77% respectively. The company is actively building overseas capacity to serve international customers more effectively, with a Mexico production base (40,000 tons annual capacity) partially commissioned in 2025 and a Huizhou project (60,000 tons) under construction for the South China market.
6. Economic Moat Analysis
Nanjing Julong's economic moat is moderate but defensible, resting on three pillars. First, customer certification barriers: material suppliers to automotive and rail OEMs must undergo lengthy qualification processes, and once designed into a vehicle platform, materials are rarely changed mid-cycle due to safety and performance validation requirements. The company's 80 kg per-vehicle polyolefin content for leading OEMs indicates deep design integration. Second, formulation and application know-how: modified plastics performance depends on proprietary formulations that balance mechanical properties, thermal stability, and processing characteristics. The company's 82 invention patents and participation in 9 national standards reflect accumulated technical capital. Third, scale in niche segments: while dwarfed by Kingfa overall, Nanjing Julong has achieved leading share in specific categories such as automotive power-system functional materials and high-speed rail nylon, where it benefits from specialized production lines and application data. However, the moat is not impregnable. Modified plastics is fundamentally a formulation business where competitors can reverse-engineer or develop alternative solutions. Kingfa's massive R&D budget and customer breadth pose a constant competitive threat. Switching costs are meaningful but not insurmountable, particularly for non-safety-critical applications.
7. Unique Competitive Advantages
Several advantages differentiate Nanjing Julong from its peers. The most distinctive is its dual-track positioning across automotive and emerging mobility. While competitors focus primarily on automotive or general industrial applications, Nanjing Julong has built a carbon fiber composite capability through subsidiary Julong Composites that directly serves the low-altitude economy. The subsidiary has designed and manufactured 14 UAV models, delivered a complete V1000B tilt-rotor hybrid aircraft airframe, and signed a contract with ZeroG Aircraft for 30 electric fixed-wing aircraft to be delivered by end-2026. This positions the company as a rare materials-to-airframe integration play in China's emerging eVTOL supply chain. Second, the company's robotics materials portfolio is unusually advanced for a mid-cap materials company, with 5 materials already in mass production and supply relationships established with multiple robot companies. Third, its national-level recognitions—the 'Little Giant' designation and the 'Manufacturing Single Champion' award for automotive power-system materials—provide credibility and access to government-supported procurement programs. Fourth, the company operates a vertically integrated composites business, controlling not just material formulation but also structural design, molding, and assembly, which enables it to capture higher value-added content in aerospace and UAV applications.
8. R&D and Technological Capability
Nanjing Julong increased R&D spending by 27.65% YoY to RMB 122 million in FY2025, representing 4.27% of revenue, up 0.26 pp from the prior year. The R&D headcount grew 11.17% to 199 personnel. The company has established five specialized laboratories: flame retardant materials, robotics materials, 6G communications, carbon fiber composites, and 3D printing materials. It was approved to establish a national-level postdoctoral research workstation in 2025 and participated in a national key R&D program on intelligent high-throughput experimental platforms for materials development. Key technical achievements in FY2025 include: high-voltage connector flame-retardant nylon and hydrogen storage tank liner nylon achieving import substitution; 4D millimeter-wave radar materials, ablation-resistant PPS, and laser-welded PA66 entering mass production; and 8 robot-specific materials developed with 5 in batch supply. The subsidiary Julong Composites received Jiangsu Province 'Specialized and New' enterprise designation, and its wood-plastic composite project won a National Science and Technology Progress Award Second Prize. Notably, R&D capitalization rate was 0%, indicating conservative accounting and full expensing of research costs.
The global modified plastics market was valued at approximately USD 447.9 billion in 2025 and is projected to reach USD 543.8 billion by 2032, growing at a CAGR of 2.9%. China is the largest regional market, with a modified plastics market size of RMB 310.7 billion in 2023, representing 28% of the global share. Domestic modified plastics production reached approximately 34.43 million tons in 2024, but China's modification rate of around 27% remains significantly below developed-country levels of 50-70%, implying substantial room for volume growth as downstream industries demand higher-performance materials. The downstream demand structure is dominated by automotive (approximately 24%), home appliances (22%), and electronics/electrical (14%). Two structural trends favor Nanjing Julong: automotive lightweighting, which increases per-vehicle plastics content as OEMs seek to offset battery weight in EVs, and import substitution in high-end engineering plastics such as PPS, PPA, and high-temperature nylon. The competitive landscape is consolidating, with the top 10 listed modified plastics companies accounting for approximately 17% of national capacity, suggesting ongoing fragmentation but a clear trajectory toward consolidation. Policy support for new materials, low-altitude economy, and embodied intelligence provides a favorable tailwind for companies with genuine technical capabilities in these domains.
10. Investment Conclusion & Enterprise Quality
Nanjing Julong presents a compelling but execution-dependent investment case at the intersection of automotive lightweighting, low-altitude economy, and embodied AI materials. The FY2025 results demonstrate that the core automotive business can deliver strong earnings growth (net income +57.05%) even with modest gross margin pressure, driven by operating leverage and mix improvement. The balance sheet shows increasing short-term and long-term borrowings (short-term borrowings +49.59%, long-term borrowings +250.7%), reflecting the capital intensity of the capacity expansion program across Chuzhou, Nanjing, Mexico, and Huizhou. The negative operating cash flow of RMB -111 million is a genuine yellow flag, attributed to a receivable-heavy sales structure where customers pay predominantly in notes rather than cash while the company pays suppliers in cash. This working capital dynamic is common in the automotive supply chain but requires monitoring as revenue scales. The emerging businesses—robotics materials, eVTOL composites, and semiconductor packaging—are early-stage and contribute negligible revenue today, but they provide optionality that is not fully reflected in the current valuation of approximately 25x trailing earnings. Enterprise quality assessment: The company scores well on technical capability, customer relationships, and strategic positioning, but faces challenges in cash conversion, scale relative to Kingfa, and the execution risk inherent in simultaneously pursuing multiple new verticals. Investors should weigh the strong momentum in the core automotive franchise against the cash flow deterioration and the long gestation period for the emerging businesses. The company merits a cautiously constructive stance, with key monitorables being operating cash flow recovery, robotics material order conversion, and eVTOL delivery execution.