Xinhan New Materials' Acquisition of Harritte: Strategic Layout for Downstream Expansion into PEEK

Based on the collected information, I now provide you with a systematic and comprehensive analysis report.

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Xinhan New Materials (Stock Code: 301076.SZ) issued an announcement on January 16, 2026, planning to acquire a 51% stake in Tangyuan County Harritte Engineering Plastics Co., Ltd. via cash payment, with a transaction price of

. This transaction does not involve connected transactions nor constitute a material asset reorganization; upon completion of the acquisition, Harritte will become a holding subsidiary of Xinhan New Materials [1].

Xinhan New Materials’ main business is the R&D, production, and sale of

, which are mainly divided into three categories [2][3]:

Product Category	Main Products	Downstream Applications
Core Raw Materials for Special Engineering Plastics	DFBP (4,4’-Difluorobenzophenone)	PEEK Monomers
Photoinitiators	MBP, PBZ, ITF	Photocurable Coatings and Inks
Cosmetic Raw Materials	HAP, HDO	New Anticorrosive Additives

Xinhan New Materials has a DFBP production capacity of

, with flexible allocation between new and old production capacities and flexible switching of some production lines. According to 2024 data, the company holds approximately of the Chinese DFBP market share, ranking second in the industry [3].

Xinhan New Materials’ DFBP products are supplied to major global PEEK material manufacturers, including:

• International Customers
  : Solvay, Victrex, Evonik
• Domestic Customers
  : Zhongyan Co., Ltd., Pengfulong, Jilin University Special Plastics, etc. [2][3]

Harritte is a high-tech enterprise mainly engaged in the synthesis and modification of

and [1].

:

• Unique Technical Positioning
  : The first domestic enterprise to launch LMPAEK (Low-Melting-Point PAEK) resins
• Production Scale
  : Has achieved industrialized production capacity of
  over 200 tons/year
  of high-quality PEEK resins and PAEK low-melting-point resins
• Application Fields
  : Products can be used in aerospace, automotive, electronic and electrical, energy, medical devices, and other fields

:

• Processing temperature range of 280-350°C, approximately 40°C lower than standard PEEK
• Advantages of low-temperature processing, wide-temperature application, cost reduction, and efficiency improvement
• Has formed stable small-batch supply in the aerospace field [4]

Financial Indicator	2024	January-August 2025
Operating Revenue	RMB 4.7835 million	RMB 7.5756 million
Net Profit	Loss of RMB 10.7952 million	Loss of RMB 5.1886 million
Total Assets	-	RMB 40.9868 million
Owner’s Equity	-	RMB 13.5720 million

Harritte is currently in a

, but its operating revenue shows a growth trend, indicating that its products have gradually gained market recognition and it is still in the stage of market development and capacity ramp-up.

Indicator	2025	2031 Forecast	Compound Annual Growth Rate
Global PEEK Market Size	Approximately RMB 7 billion	Exceeding RMB 13.1 billion	-
Chinese PEEK Market Size	Approximately RMB 2.18 billion	RMB 5 billion	14.4%

The growth rate of the Chinese PEEK market is higher than that of the global market; emerging fields such as

are expected to contribute significant incremental demand [5][6].

Global PEEK production presents an oligopolistic pattern of

[5][6]:

Enterprise	Production Capacity (tons/year)	Market Share	Remarks
Victrex (UK)	7,150	Approximately 60%	The world’s largest PEEK manufacturer
Solvay (Belgium)	2,500	-	Production base in India
Evonik (Germany)	1,800	-	Products are mainly exported to Europe
Zhongyan Co., Ltd. (China)	Approximately 1,000	-	The 4th enterprise globally with a thousand-ton-level capacity
Others	Approximately 1,000	-	-

According to 2024 data, the Chinese DFBP market has a high degree of concentration [3]:

Enterprise	Market Share (by Production Capacity)
Zhongxin Fluorochemicals	Approximately 30%
Xinhan New Materials	27.1%
Xingfu New Materials	20.8%
Wanlong Chemical	Approximately 5%
Others	Approximately 17.1%

This acquisition marks an important strategic transformation of Xinhan New Materials from an

to a :

Before the Acquisition:
DFBP (PEEK Monomer) ─────────────► PEEK Resin Manufacturers (Customers)
        │
        ▼
Xinhan New Materials (only engaged in upstream raw material business)

After the Acquisition:
DFBP ◄──────── Harritte ◄────── PEEK Resin ◄──────► Downstream Applications
        │          │
        │          ▼
        └────► PAEK/LMPAEK (New Business)
               Aerospace, Automotive, Electronic and Electrical, etc.

:

1. Raw Material Synergy
   : Xinhan New Materials’ DFBP can be supplied to Harritte for production, reducing raw material costs
2. Technical Synergy
   : Harritte’s LMPAEK technology complements Xinhan New Materials’ aromatic ketone technology
3. Customer Synergy
   : After integration, it can provide customers with more complete PAEK full-industry-chain solutions

LMPAEK (Low-Melting-Point Polyaryletherketone) represents the development direction of

[4]:

Feature	Standard PEEK	LMPAEK	Advantage
Processing Temperature	320-390°C	280-350°C	Approximately 40°C lower, significant energy savings
Production Efficiency	Traditional Process	Optimized Process	Accelerates production cycle
Application Scope	General Fields	Aerospace Composites, Automotive	Matches automated laying/winding-hot pressing integrated equipment
Cost	Relatively High	Relatively Low	Reduces costs and improves efficiency, promoting large-scale application

According to industry research, LMPAEK can shorten the production cycle of aerospace structural parts by approximately 30%, and this technical advantage has significant application value in the

field [4].

1. Broad Market Space
   : The Chinese PEEK market has a compound annual growth rate of 14.4% from 2025 to 2031, and the market size will reach RMB 5 billion by 2031 [6]
2. Domestic Substitution Opportunities
   : Currently, over 80% of the domestic market share is occupied by European and American enterprises, leaving huge space for localized substitution [5]
3. Policy Support
   : New materials are a strategic emerging industry and receive strong support from national policies
4. Rise of Emerging Applications
   : Demand for PEEK from emerging fields such as humanoid robots and low-altitude economy is growing rapidly

1. Harritte is still in the loss-making stage
   : It recorded a loss of RMB 10.7952 million in 2024, and its profitability remains to be verified
2. Fierce Industry Competition
   : International giants such as Victrex, Solvay, and Evonik have leading technologies, and domestic manufacturers face gaps in brand effect
3. High Technical Threshold
   : PEEK material modification technology and application development require long-term accumulation
4. Cost Pressure
   : The cost of PEEK is much higher than that of other special materials, limiting the application of large-volume components [5]

: The acquisition of Harritte opens a , but considering Harritte’s current loss-making status and market development cycle, it is difficult to become a significant profit contributor in the short term. In the medium to long term, if technical resources and customer networks can be successfully integrated, it is expected to gradually form a second growth curve in 3-5 years.

This acquisition will further improve the

of China’s PAEK industrial chain:

Industrial Chain Link	Representative Enterprises	Current Status
Upstream Raw Materials (DFBP)	Xinhan New Materials, Xingfu New Materials, Zhongxin Fluorochemicals	Already have strong competitiveness
Midstream Polymerization	Zhongyan Co., Ltd., Wotech Co., Ltd., Harritte	Production capacity is expanding rapidly
Downstream Modification/Products	Kingfa Technology, Nanjing Julong, Wotech Co., Ltd.	Continuous technological innovation

After acquiring Harritte, Xinhan New Materials will become one of the few domestic enterprises covering the

.

Harritte is one of the domestic enterprises that

, with an annual production capacity of 500 tons [4]. After the acquisition is completed, with the capital and resource advantages of Xinhan New Materials, it is expected to accelerate the industrialization process of LMPAEK technology and promote domestic breakthroughs in high-end application fields such as aerospace composite materials.

The high technical barriers and capital-intensive characteristics of the PEEK industry determine that industrial integration will become a trend. The case of Xinhan New Materials acquiring Harritte indicates:

1. Upstream-Downstream Integration
   : Raw material enterprises extend downstream to build full-industry-chain competitive advantages
2. Technology Complementary Integration
   : Acquire differentiated technical capabilities through acquisitions
3. Customer Resource Integration
   : Expand customer coverage and increase market share

Enterprise	Industrial Chain Layout	Competitive Advantage
Zhongyan Co., Ltd.	Focused on PEEK polymerization	Domestic PEEK leader with the largest production capacity
Wotech Co., Ltd.	Full chain of polymerization-modification-finished product manufacturing	1,000-ton PAEK project put into operation
Kingfa Technology	Focused on modification, with layout in polymerization technology	Scale advantages and abundant customer resources
Xinhan New Materials + Harritte	DFBP + LMPAEK polymerization	Upstream advantages + differentiated technology

1. Great Strategic Significance
   : The acquisition of Harritte is an important layout for Xinhan New Materials to extend downstream and build full-industry-chain competitiveness
2. Limited Short-Term Impact
   : Harritte is still in a loss-making state, with limited contribution to the company’s performance
3. Optimistic about Medium to Long Term
   : If integration is successful, it is expected to form differentiated competitive advantages in the full PAEK industrial chain and share the dividends of domestic substitution
4. Broad Industry Prospects
   : The PEEK market grows at an annual rate of 14.4%, with emerging applications such as low-altitude economy and robotics providing incremental demand

Risk Type	Specific Content	Impact Level
Integration Risk	Uncertainties exist in corporate culture, management team, and technology integration	Medium
Market Risk	PEEK market development falls short of expectations, and competition intensifies	Medium-High
Technical Risk	Uncertainties exist in the industrialization process of LMPAEK technology	Medium
Financial Risk	Harritte’s continuous losses may affect the performance of the listed company	Medium-Low
Policy Risk	Changes in new materials industry policies may affect development	Low

1. Harritte’s production capacity utilization and customer development progress
2. Integration effect between Xinhan New Materials and Harritte
3. Application breakthroughs of LMPAEK in high-end fields such as aerospace
4. Changes in overall demand in the PEEK industry, especially in the robotics and low-altitude economy fields

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[1] Sina Finance - “Plans to Invest Nearly RMB 13 Million, Xinhan New Materials Plans to Acquire 51% Stake in Harritte” (https://finance.sina.com.cn/jjxw/2026-01-16/doc-inhhnuut2596512.shtml)

[2] Huajin Securities Research Institute - “PEEK Market Has Huge Potential, Domestic Enterprises Face Development Opportunities” Industry Research Report (https://pdf.dfcfw.com/pdf/H3_AP202509141743403545_1.pdf)

[3] 2024 Annual Report of Jiangsu Xinhan New Materials Co., Ltd. (https://www.sinohighchem.com/Uploads/681c588a7e9d0.pdf)

[4] Science Open - “Development of High-Performance Thermoplastic Resin Matrix Composites” (https://www.sciopen.com/article_pdf/1934889545505644546.pdf)

[5] Securities Times - “PEEK Material Industry Remains Hot, Commercialization Cost Problems Await Solutions” (https://www.stcn.com/article/detail/3344477.html)

[6] Huaon Industry Research Institute - “2025 Global and Chinese Polyetheretherketone (PEEK) Competitive Pattern and Production Capacity Distribution Analysis” (https://m.huaon.com/channel/trend/1077956.html)

[7] Qianzhan Industry Research Institute - “Competition Pattern and Market Share of China’s PEEK Material Industry” (https://www.qianzhan.com/analyst/detail/220/240809-d7eef083.html)

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: The above figure shows the global PEEK production capacity distribution (left figure, tons/year) and Chinese DFBP market share (right figure, by production capacity in 2024). It can be seen that global PEEK production capacity is highly concentrated among three international giants: Victrex, Solvay, and Evonik, while the Chinese DFBP market is dominated by local enterprises, with Xinhan New Materials ranking second with a 27.1% market share.