China Treasures New Materials (CTNM) (HKEX: 2439) is a Hong Kong-listed company based in Changchun, Jilin, in Northeastern China. It develops, manufactures, and sells both biodegradable and non-biodegradable plastic products. It’s not a flashy business, but it plays a critical role in the sustainability landscape and benefits from regulatory tailwinds.
CTNM is one of China’s leading producers of disposable biodegradable plastic products, particularly plastic bags, rolls, and wraps, which make up over 90% of its revenue and profit. It manufactures masterbatches—compounds that can be tailored to customers' requirements—making it an integral part of the supply chain.
The company’s core products are designed to degrade in landfill environments through the action of bacteria and microorganisms.
A smaller segment of its business involves making non-biodegradable plastic parts for automobiles.
The industry remains fragmented. In 2021, the top five biodegradable plastic producers in China held just 13.4% market share combined. CTNM ranked fourth with a 2.6% share.
Despite this, it has delivered solid growth: revenue and profit both more than doubled in four years, with a 4-year CAGR of 25% for revenue and 23% for profit. In the most recent year, revenue rose 11% while profit surged 33%, or 19% excluding one-off gains—thanks to stable gross margins and tight cost control.