- Jiaxing company plans Hungary, Thailand expansion as overseas sales dominate revenue
- Europe accounts for more than 85% of 2025 revenue despite North America margin pressure
Kingdom New Material Group (晶通新材料集团), one of China’s largest exporters of PVC decorative materials, has filed for a Hong Kong initial public offering as it looks to expand production in Europe and Southeast Asia amid rising global demand for vinyl flooring and wall panels.
The Jiaxing-based company submitted its listing application to the Hong Kong Stock Exchange on May 27, with China International Capital Corporation acting as sole sponsor.
Proceeds from the IPO — with fundraising size and share count yet to be finalized — are expected to support a new wall panel production base in Tongxiang — a county-level city governed by Jiaxing — a green manufacturing facility in Hungary, and expansion of its Thailand plant.
According to the prospectus, Kingdom ranked first among suppliers in China’s PVC decorative materials export market by total export value in 2025, with products sold across more than 60 countries and regions.
The company mainly produces PVC flooring and wall panels, including SPC, LVT and EPC product lines used in residential, commercial and public spaces.
PVC, short for polyvinyl chloride, is a widely used synthetic plastic material commonly found in flooring, pipes, cables and construction products.
Kingdom operates under both ODM and OEM models and launches more than 300 self-developed flooring products and 100 wall panel products annually.
Revenue rose from 1.6 billion yuan ($236 million) in 2023 to 2.22 billion yuan in 2024 and 2.31 billion yuan in 2025, while net profit increased from 230 million yuan to 337 million yuan and 361 million yuan over the same period, according to the filing.
Gross margins remained relatively stable between 35.9% and 37%.
Heavily reliant on exports
The company, however, remains heavily dependent on overseas markets, which accounted for more than 98% of revenue during the reporting period. Europe was its largest market, contributing 1.97 billion yuan in revenue in 2025, or 85.3% of the total.
While North American sales grew rapidly, gross margins in the region fell to 6.3% from 27.7% because of high unit costs tied to low utilization rates at its newly built Thailand factory, which operated at only 17.9% capacity.
Kingdom was founded in 2010 by husband-and-wife team Dai Huibin and Zhang Shuhong, both English majors from Zhejiang Radio and Television University’s Yuhang campus.
Before the IPO, the couple collectively controlled about 92.38% of the company’s voting rights through concerted action arrangements.
