China's Largest Pearlescent Pigment Producer Up 40% Last Year

In February this year, Global New Materials participated PCHi (Personal Care and Homecare Ingredients). The company brought global premiere of its new product "Qatar Red" and received wide attention from the exhibitors.

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On March 29th, Global New Material (also known as CHESIR), a leading manufacturer of pearlescent pigments, released its 2022 financial results. Its revenue was 917 million yuan ($133.2 million) in 2022, up 36.9% year-on-year. Its net income was 237 million yuan ($34.4 million), up 39.9% year-on-year.

From the perspective of its major products, it can be seen that pearlescent pigment product revenues were approximately 851 million yuan ($123.6 million), up 27.4% year-over-year. Its revenue from mica functional fillers and related products was approximately 66.12 million yuan ($9.6 million), up over 30 times year-on-year.

In addition to the business in China, products of Global New Material are also sold in Europe and Africa. Last year, sales in Europe amounted to 6.455 million yuan ($937,300) and sales in Africa amounted to 6.967 million yuan ($1 million).

According to public information, Global New Material is mainly engaged in high-end materials such as pearls and synthetic mica. The related products are widely used in cosmetics, automobiles and new energy batteries. In the field of cosmetics, pearlescent pigment is an indispensable raw material. It can be used in lipstick, eye shadow, foundation, eyeliner, eyebrow pencil, nail polish, hair cream and many other products.

As the revenue scale of Global New Material, it claims to be the largest manufacturer of pearlescent pigments in the Chinese market.

The financial report said that with the new standards of various industries in China, such as UV-curable Coatings for Cosmetic Packaging Materials, the requirements, test methods and inspection standards of the coatings will further increase the application of pearlescent pigment products in cosmetics and other fields.

It is worth mentioning that in February this year, Global New Materials brought a variety of new products to the PCHi, in this exhibition, the company's global debut of new products "Qatar Red", received wide attention from the exhibitors.

According to Euromonitor and Qianzhan.com, the size of China's colour cosmetics market reached 71.595 billion yuan ($10.4 billion) in 2022, an increase of 9.05% year-on-year. China's colour cosmetics market size is expected to reach 111.3 billion yuan ($16.2 billion) in 2028, growing at a CAGR of 7.5% from 2023 to 2028. Benefiting from the rapid growth, the upstream pearlescent pigment market will see great potential, the financial report said.

In addition, in January this year, Global New Material acquired part of the shares of CQV, the largest pearlescent material company in Korea, for approximately 470 million yuan ($68.2 million). Global New Material is the largest shareholder of CQV. Meanwhile, CQV enjoys a strong R&D and design team and a synthetic mica-based product system. This acquisition will further open up the integration of the upstream and downstream industry chain and is expected to usher in a new period of performance growth.

Mr. Su Ertian, Chairman of the Board of Directors of Global New Material, said that looking ahead, the company will continue to follow the strategic goal of "endogenous development and outward expansion" established by the Board of Directors and accelerate the strategic deployment of the Group. It will focus on expanding the production capacity of pearlescent pigment products and strengthen the R&D capability and the synergistic integration of CQV in Korea. It will continue to seek channels with good cooperation bases and advanced technologies, and further enhance our core competitiveness through international acquisitions.