Kingwills Advanced Materials Files IPO Prospectus: Hypak Flash-Spun Material Achieves Annual Production Capacity Over 15,000 Tons

The New Materials Industry, Long Left on the “Bench,” Is Now in the Spotlight!

Investment and financing data provide the most intuitive reflection of market sentiment. According to statistics from VCBeat, 53 investment deals in the new materials industry were completed in the first two months of 2024 alone, with total investment exceeding RMB 4.2 billion. Furthermore, since February, six investment funds focused on new materials-related sectors have completed regulatory filing. Innovative enterprises deeply engaged in the new materials industry are poised to benefit from these favorable developments!

As a leader in the new materials industry, Qingyun New Materials has undoubtedly become a focal point for investors. Within just one year, the company rapidly completed two rounds of financing totaling hundreds of millions of yuan, attracting additional investments from prominent institutions such as CNBM New Materials Fund, Sinopec Capital, Hillhouse Ventures, Oriental Yuhong, and CICC Capital.

Qingyun New Materials is a sustainable materials innovation enterprise. Founded in 2014, Shanghai Qingyun New Materials,Its independently developed flash-spinning new material, “Kunlun Hypak,” began mass production in Nantong, Jiangsu Province, after a prolonged period of technological R&D. In 2023, its annual output ramped up to 15,000 metric tons, breaking the global technological monopoly held by chemical industry giants for over 50 years and filling a gap in China’s new materials technology sector.

“Kunlun Hypak” is one of Qingyun New Materials’ flagship products. It is a high-strength flash-spun novel material that combines high-performance bacterial barrier properties with waterproofness and breathability, holding an irreplaceable position in the fields of medical protection and sterilization packaging for high-value medical devices.

High value often implies high barriers to entry. Prior to the advent of “Kunlun Hypak,” this market had been monopolized by a global chemical giant for over half a century. The conglomerate imposed a comprehensive blockade on all related technologies and processes, forcing innovators seeking to break the monopoly to independently develop raw material formulations and manufacturing processes, and even to design and produce all necessary production equipment and components.

After recognizing the passive position of end-users and distributors in the new materials market, characterized by limited supply and high pricing, Chen Boyi was determined to establish Qingyun New Materials and venture into uncharted territory. After a decade of accumulation, Qingyun New Materials successfully developed “Kunlun Hypak” by processing high-density polyethylene using its independently breakthrough “flash-spinning” production technology. Currently, Qingyun New Materials has filed over 100 patent applications, building a robust technological barrier.

Chen Boyi, Founder and CEO of Qingyun New Materials, stated that “Kunlun Hypak” is a specialty fiber material with balanced performance. Its structure lies between paper, nonwoven fabrics, and film materials, enabling it to combine bacterial barrier, waterproof, and breathable properties. It is lightweight yet exceptionally strong and durable, while also offering resistance to aging and corrosion, as well as being environmentally friendly and recyclable.

Generally, the higher the strength of a material, the greater its weight. From a microstructural perspective, materials with higher strength tend to have smaller pores, which block water molecules but also prevent breathability. However, Kunlun Hypak achieves a remarkable balance between these contradictory properties, thanks to the innovative “flash-spinning” production process.

“Flash spinning” is a physical process in which chemical materials, under high-temperature and high-pressure conditions, are instantaneously ejected at supersonic speeds in liquid form to form ultrafine nanofibers that are deposited on a conveyor belt in a random, disordered arrangement. Through stepwise process improvements and formulation adjustments, Qingyun New Materials has achieved an ordered distribution of fibers, thereby enabling the coexistence of contradictory material properties.

Leveraging its superior material properties, “Kunlun Hypak” has been deployed across five major sectors—medical packaging, safety protection, building energy efficiency, industrial innovation, and creative lifestyle—spanning nearly 100 niche application scenarios. In the medical field, beyond medical protective products, packaging for high-value medical devices represents a key application area for “Kunlun Hypak.”

Chen Boyi introduced, “Most medical products requiring sterilization at the factory level utilize our products. From the time they leave the factory after sterilization to their use in hospitals throughout the entire shelf life, Kunlun Hypak provides dual protection with sterile barrier and high-strength physical protection, making it suitable for almost all sterilization methods. Especially for packaging materials targeting Class III implantable and interventional devices, Kunlun Hypak is widely recognized as the preferred choice in the market.”

In August 2022, Qingyun New Materials commissioned its first 3,000-ton mass production line, truly breaking the foreign monopoly. Just one year later, the company completed the construction and commenced operations of two additional 6,000-ton production lines.

Currently, Qingyun New Materials’ total annual production capacity has reached 15,000 metric tons, directly and indirectly impacting people’s lives. Furthermore, Qingyun New Materials is actively expanding into overseas markets, promoting “Chinese innovation” to a broader global audience.

The new materials industry features high technical barriers, long R&D cycles, and significant uncertainties in commercialization pathways; consequently, it remained largely unfamiliar to the market for an extended period. Qingyun New Materials also went through a challenging phase.

As a serial entrepreneur, Chen Boyi has weathered the ups and downs of the photovoltaic and semiconductor industries and capitalized on the market dividends from photovoltaic power station projects. His extensive experience in organizational management and market expansion will help Qingyun New Materials advance more smoothly.

“Prior to 2019, Qingyun New Materials was in a phase of early exploration. Without any external experience to draw upon, the company continuously explored and learned through trial and error, ultimately succeeding in manufacturing equipment and processes of its own design with fully independent intellectual property rights.” With confidence in China’s intelligent manufacturing capabilities, Chen Boyi guided Qingyun New Materials successfully through the challenging R&D period.

Qingyun New Materials has attracted elite talent from renowned domestic and international institutions such as Harvard University, the Max Planck Institute for Experimental Medicine, Tsinghua University, Peking University, and Zhejiang University, establishing an innovative technical team with interdisciplinary backgrounds.

Qingyun New Materials has attracted significant attention from investors thanks to its professional team, advanced technology, standardized and scalable production lines, and a validated commercialization pathway. In 2022, the company completed an A-round financing of over RMB 100 million, with Hillhouse Venture Capital, Oriental Yuhong, CICC Capital, and Green Dynamic Capital joining as investors. In May 2023, it secured another RMB 100 million in B-round financing, co-led by CNBM New Materials Fund and Jinpu Investment, with participation from Shaanxi Coal Fund, Yuanhe Hopeful, and Taihe Capital; existing A-round lead investors Hillhouse Venture Capital and Oriental Yuhong also increased their stakes. Just three months later, Sinopec Capital completed a new round of investment in Qingyun New Materials, underscoring the confidence and favor shown by both new and existing shareholders in the company’s rapid performance growth.

It is worth noting that the new round of financing has introduced the National New Materials Fund, local state-owned assets, and central and state-owned enterprises with upstream and downstream business synergies. Their participation will help Qingyun New Materials better leverage industrial synergy and resource advantages, thereby strengthening its domestic advantage in achieving independent innovation for highly scarce materials.

Chen Boyi stated that to meet the diversified demands of the market and future innovative scenarios, Qingyun New Materials is committed to becoming a platform-based innovative enterprise characterized by sustainable development and continuous technological iteration. Product development will not be limited to high-density polyethylene (HDPE) flash-spun materials; instead, Qingyun New Materials will apply the flash-spinning technology to different base materials, further expanding its application scenarios into industries where the company already holds industrial advantages, such as healthcare, semiconductors, new energy, and hydrogen production. Currently, the product pipeline has achieved breakthrough progress in the laboratory and will soon enter the pilot-scale trial stage.

At the 89th China International Medical Equipment Fair (CMEF), scheduled to be held in Shanghai in April 2024, Qingyun New Materials will showcase its innovative medical packaging solutions and launch a series of new products for 2024, expanding application scenarios in medical device and pharmaceutical packaging to facilitate the upgrading and iteration of the medical packaging industry.