In 2023, the market size of China's medical device industry reached 1.18 trillion yuan, a year-on-year growth of 10.28%, and has become the second largest market in the world. Under the background of the full implementation of the plastic ban, paper instead of plastic undoubtedly became a major development trend of China's medical and food primary packaging industry.

  Hengda New Material relied on technology accumulation and independent research and development of medical packaging base paper, and further expanded the business to food packaging base paper, industrial specialty paper and other areas. After more than 20 years of deep-rooted development, Hengda has overcome a number of technical problems, now Hengda New Material has become a pioneer enterprise in China's medical and food packaging raw paper field.

  In 2024, the scale of China's medical device industry is growing rapidly. According to China Logistics and Purchasing Joint Conference "China Medical Device Supply Chain Development Report (2024)", the market scale of China's medical device industry market reaced 118 million yuan in 2023, a year-on-year increase of 10.28%. At the same time, as the world's largest exporter country of medical dressings, China's medical dressing exports reached 2 billion US dollars in 2023, and the compound growth rate from 2019 to 2023 reached 6.4%, showing a similar growth trend as medical instruments and equipment projects.

  The medical packaging specialty paper produced by Hengda New Material is mainly used for sterilization reels and pouches for terminally sterilized medical consumables and equipment. The products are directly and indirectly supplied to well-known domestic and foreign medical consumables and equipment manufacturers such as ALLMED Medical, ZHENDE Medical, WINNER Medical and MEDLINE.

  Besides, according to data from the National Bureau of Statistics, China's catering revenue reached 5.289 trillion yuan in 2023, a year-on-year increase of 20.4%, Yum China as the representative of the chain restaurant took advantage of the situation and the number of restaurant stores had grown rapidly. At the end of last year, the number of KFC stores in China exceeded 10,000, and became the first overseas brand with more than 10,000 stores in China.

  The food packaging base paper produced by Hengda New Material is non-containerized food packaging base paper. It has established close cooperative relationship with well-known domestic and foreign packaging manufacturers such as DETMOLD GROUP, ZIJIANG ENTERPRISE and NANWANG, and has entered the supply chain system of large fast food chain companies such as KFC, Starbucks, Dicos, Burger King, and Subway.

  Since 2008, China from plastic restriction to plastic ban, environment protection trend has become more and more stringent. Replacing plastic with paper has become a major development trend in the medical and food primary packaging industries. The leading companies in the medical and food industries anchored by Hengda New Material are increasingly using paper packaging to replace plastic packaging, promoting the continued steady development of the specialty paper industry.

  In the first quarter if 2024, Hengda New Material achieved operating income of 253550200 yuan, a year-on year increase of 27.66%. At present, the company has put into production a total of seven production lines, with a combined capacity of about 100000 tons. The wholly-owned subsidiary Hengchuan New Material is building 2 production lines with capacity of " 50000 tons of base paper production and 10000 tons of deep processing base paper".  After all are completed and put into production, the total capacity will be approximately 150000-160000 tons.

(Source: Wutongshuxia V)