Quechen Silicon Chemical Co., Ltd. (605183.SS) Bundle
Founded on January 28, 2003 in Wuxi, Jiangsu, Quechen Silicon Chemical Co., Ltd. (ticker 605183.SS) has evolved from a domestic precipitated silica producer to a global supplier-renamed in December 2011, taking a major step with a 6.67% stake held by JD Capital prior to public transfer, listing on the NEEQ in 2015, establishing Quechen Silica (Thailand) in Rayong in 2016, and announcing a Marseille facility in 2018 planned to produce 90,000 tons/year of High Dispersion Silica and host R&D capabilities; its vertically integrated model spans raw material procurement, R&D, production in Wuxi and Rayong, and export-focused supply chains, while mission-driven, green-product lines (notably silica for green tires and animal feed carriers) underpin revenue-Q1 2025 results show revenue of ¥534.5 million, gross profit of ¥181.5 million and net income of ¥137.6 million, complementing a CNY 379.35 million net income reported for 2024 and signaling how product sales, international expansion, R&D-driven innovation and strategic partnerships convert technical capability into cash flow.
Quechen Silicon Chemical Co., Ltd. (605183.SS) - Intro
Quechen Silicon Chemical Co., Ltd. (605183.SS) is a China-based specialty chemical manufacturer focused on precipitated silica and silicon dioxide materials used across rubber, coatings, plastics, adhesives, sealants, cosmetics, and food-grade applications. The company's trajectory reflects steady internationalization and product diversification since its founding in 2003.- Founded: January 28, 2003 - Wuxi, Jiangsu Province, China (originally Wuxi Quechen Silicon Chemical Co., Ltd.).
- Name change: December 2011 - renamed Quechen Silicon Chemical Co., Ltd. to reflect expanded operations.
- Public listing: 2015 - listed on the National Equities and Exchange Quotations (NEEQ).
- Regional expansion: 2016 - established Quechen Silica (Thailand) Co., Ltd. in Rayong, Thailand to serve Southeast Asian markets.
- European project: 2018 - announced planned Marseille, France facility targeting 90,000 t/yr High Dispersion Silica (HDS) production and an R&D center.
- Status as of late 2025 - continues to operate as a leading silica materials manufacturer serving global industries.
| Item | Detail |
|---|---|
| Incorporation date | 2003-01-28 (Wuxi, Jiangsu) |
| Former name | Wuxi Quechen Silicon Chemical Co., Ltd. (until Dec 2011) |
| Public listing | 2015 - NEEQ (National Equities and Exchange Quotations) |
| International subsidiaries | Quechen Silica (Thailand) Co., Ltd. (Rayong, 2016) |
| Planned European capacity | Marseille facility - 90,000 tonnes/year HDS (announced 2018) |
| Main product families | Precipitated silica, high dispersion silica (HDS), silicon dioxide derivatives |
- Product sales - core revenue from manufacturing and selling precipitated silica and specialized silicon dioxide products to industrial customers (rubber tire treads, reinforcement fillers, coatings, adhesives, plastics, cosmetics, and food-related grades).
- Value-added formulations and technical services - margin enhancement through tailored HDS grades and application support (dispersion technology, R&D-backed product development).
- Geographic diversification - export sales and regional subsidiaries reduce single-market dependence and capture Southeast Asian and European demand.
- Scale projects and capacity expansion - larger plants (e.g., planned 90,000 t/yr HDS in Marseille) aim to lower per-unit costs and increase supply to global customers.
- Contract manufacturing and long-term supply agreements - predictable revenue from multi-year contracts with industrial users and tier-1 manufacturers.
- Listed status: public company on NEEQ since 2015, enabling minority shareholders and market liquidity.
- Management and founders: original Wuxi founders and executive management maintain operational control and strategic direction (typical of NEEQ-listed specialty chemical firms).
- International subsidiaries and project SPVs: used to operate manufacturing bases and logistics in Thailand and planned European operations.
- China manufacturing base(s): primary production in Wuxi with downstream processing and packaging for domestic and export customers.
- Thailand subsidiary: local presence in Rayong (est. 2016) for Southeast Asian distribution and potential localized production/service.
- R&D emphasis: announced Marseille R&D center (2018) highlighting focus on HDS innovation, dispersion technologies, and application-driven product development.
- Product specialization - moving up the value chain from commodity silica to high-dispersion, application-specific grades.
- International capacity build-out - targeted projects (e.g., 90,000 t/yr HDS) to supply automotive, tire, and specialty polymer markets in Europe and beyond.
- Customer diversification - supplying multiple end-markets to smooth cyclical demand in any single sector.
- R&D and technical service - differentiating on performance, not just price.
Quechen Silicon Chemical Co., Ltd. (605183.SS): History
Quechen Silicon Chemical Co., Ltd. (605183.SS) has grown from a specialty chemicals manufacturer into a publicly traded silicon-chemicals platform with expanding domestic and international footprints. Key ownership and structural milestones have shaped its capital access, transparency and strategic execution.- Listed on the Shanghai Stock Exchange under ticker 605183.SS, providing public-market access to capital and regulatory disclosure.
- In 2011 JD Capital became the company's second-largest shareholder with a 6.67% stake prior to the public transfer.
- The shareholder base comprises both institutional and individual investors, supporting diversified financing and governance.
- Ownership stability as of late 2025 enables continued focus on core operations and planned expansion.
| Item | Data |
|---|---|
| Exchange / Ticker | Shanghai Stock Exchange / 605183.SS |
| Notable historical stake | JD Capital - 6.67% (2011, second-largest shareholder before public transfer) |
| Shareholder composition | Mixture of institutional and retail investors (diversified) |
| Strategic implication | Public listing provides capital access and transparency to support domestic & international growth |
| Status (late 2025) | Ownership structure stable; focus on core business operations |
- How ownership supports operations: public equity allows capital raising for capacity expansion, R&D in silicon chemistries, and potential M&A.
- Governance and investor engagement: diversified holders enhance market discipline and visibility to institutional investors.
Quechen Silicon Chemical Co., Ltd. (605183.SS): Ownership Structure
Quechen Silicon Chemical Co., Ltd. (605183.SS) positions itself as a technology- and sustainability-led specialty chemical manufacturer focused on high-dispersion silica for green tires, feed carriers, and other industrial applications. The company explicitly states its mission to 'Develop and Lead China's Fine National Industry,' and structures its operations to reflect that mission through R&D investment, vertical integration, and environmentally conscious production.- Mission and values: innovation-led growth, green and sustainable development, quality-first manufacturing, and global service orientation.
- Product focus: high-dispersion silica for FE tires, low-rolling-resistance tires, UHP tires, and the world-leading line of silica used as animal feed carriers.
- Industrial chain: upstream raw materials processing → advanced silica synthesis → dispersion and surface treatment → formulated products for tire and feed sectors.
| Metric | Value (Approx.) |
|---|---|
| Revenue (FY 2023) | RMB 3.2 billion |
| Net Profit (FY 2023) | RMB 420 million |
| Employees | ~1,200 |
| Annual silica production capacity | ~200,000 tonnes |
| R&D spend (FY 2023) | ~RMB 120 million (≈3.75% of revenue) |
| Export share of sales | ~28% |
- Board and management emphasize continuity of technological leadership and ESG compliance; senior management holds a meaningful equity stake to align incentives.
- Major shareholder composition (illustrative breakdown):
| Shareholder Category | Approx. Ownership |
|---|---|
| Founders / Management | 28% |
| Institutional Investors (including strategic partners) | 22% |
| Public Float / Retail Investors | 45% |
| Employee & Treasury Holdings | 5% |
- Green tire focus: supplying high-dispersion silica formulations that enable lower rolling resistance - a key selling point to OEMs and tire makers targeting fuel-efficiency and emission reductions.
- Animal feed silica: large-scale, controlled-pore silica carriers for feed additives; Quechen claims global leadership in this niche, supporting stable margins and recurring demand from agribusiness.
- Vertical integration reduces raw-material cost volatility and improves gross margin - reflected in the company's reported gross margin levels above typical commodity silica peers.
- R&D-driven product premium: new grades and surface treatments allow premium pricing and higher ASPs (average selling prices) in specialty markets such as FE and UHP tires.
| Initiative | Target / Impact |
|---|---|
| Green production upgrades | Reduce energy intensity and emissions per tonne; capital expenditure focused on waste heat recovery and emissions control |
| Capacity expansion | Incremental 20-30 kt/year silica capacity per announced project cycle to meet growing tire/feed demand |
| Global market expansion | Increase export share via strategic partnerships and sales channels in Europe and Southeast Asia |
Quechen Silicon Chemical Co., Ltd. (605183.SS): Mission and Values
Quechen Silicon Chemical Co., Ltd. (605183.SS) operates a vertically integrated model that controls the entire value chain from raw material sourcing through high-value silica product manufacture and distribution. The company combines upstream raw silica processing with downstream modification and formulation to serve tire, rubber, coatings, masterbatch, and specialty chemical markets globally.- Vertical integration: in-house mining/precursor purchase → wet/dry processing → surface modification → final product packaging and logistics.
- Primary production footprint: Wuxi, Jiangsu Province (China); manufacturing & technical center in Rayong, Thailand; announced/ planned European facility in Marseille, France to improve regional supply and lower logistics lead times.
- R&D focus: green material formulations, high-dispersion precipitated and fumed silica, lower-carbon processes and product functionalization for high-performance rubber and coatings applications.
- Quality & sustainability: ISO-aligned quality systems, emissions controls, wastewater treatment, and energy-efficiency upgrades integrated into plants to meet international compliance requirements.
- Supply chain & markets: optimized inbound raw silica sourcing and export-oriented logistics, serving domestic Chinese OEMs and international tire and specialty chemical customers.
- Organization: dedicated R&D, production, sales, and customer service teams structured to support rapid scale-up, technical support, and new product commercialization.
| Metric | Value / Note |
|---|---|
| Headquarters | Wuxi, Jiangsu Province, China |
| Other operations | Rayong, Thailand; planned Marseille, France facility |
| Approx. annual production capacity (aggregate) | ~120,000 tonnes (precipitated & modified silica) |
| R&D staff (% of workforce) | ~8% (dedicated labs for polymer compounding & surface chemistry) |
| Export markets | ASEAN, Europe, North America - increasing share via Marseille facility |
| Environmental investments (recent years) | Wastewater & emissions controls, energy recovery - capital projects funded from operating cash flow |
| Listed ticker | 605183.SS (Shanghai Stock Exchange) |
- Raw material procurement: sourcing silica precursors and additives domestically and regionally to secure feedstock and control input cost volatility.
- Core manufacturing: precipitation, filtration, drying, milling and surface functionalization to produce grades for rubber, tire tread, coatings, adhesives and specialty applications.
- Quality control: multi-point testing (particle size distribution, surface area - BET, moisture, oil absorption) and batch traceability to meet OEM specifications.
- Product development cycle: customer-driven formulation work in R&D labs, pilot runs in Wuxi, scale-up in production lines, followed by technical service support at customer plants.
- Sales & distribution: direct sales to OEMs and compounders, complemented by regional distributors and logistics hubs to reduce lead times and inventory carry.
- Environmental & compliance process: on-site effluent treatment, dust capture and energy-efficiency retrofits to reduce per-ton emissions and align with international standards.
- Product sales: primary revenue from industrial silica products (precipitated, fumed, surface-modified silica) sold by tonnage and grade premium.
- Value-add services: technical compounding support, custom surface treatments and co-development projects command higher margins.
- Geographic diversification: expanding exports (Europe/ASEAN) to capture higher-margin markets and mitigate single-market exposure.
- Scale & cost control: vertical integration lowers input costs and improves gross margins through internal recycling and process optimization.
- Capacity utilization - impacts per-ton fixed cost absorption and operating margin.
- Input raw material pricing and FX exposure - procurement strategy and hedging affect gross profit.
- R&D conversion - share of new, higher-margin specialty grades in total sales mix.
- Environmental CAPEX - short-term cash outflow for long-term compliance and efficiency gains.
Quechen Silicon Chemical Co., Ltd. (605183.SS): How It Works
Quechen Silicon Chemical Co., Ltd. (605183.SS) operates as an industrial manufacturer and supplier of precipitated silica and silicon dioxide specialty products. Its operations span raw-material sourcing, chemical processing, product formulation, quality control, and sales to multiple industrial end-markets.- Core product lines: precipitated silica grades for tire and rubber reinforcement, silica for animal nutrition (feed additives), and cosmetic-grade silicon dioxide.
- Primary customers: tire and rubber manufacturers, feed compounders and livestock integrators, personal-care and cosmetics formulators, plus industrial fillers for polymers and coatings.
- Value chain activities: procurement of quartz/silica raw materials; wet-chemical synthesis (precipitation, filtration, drying); milling and surface treatment; packaging and distribution; technical support and application development.
| Metric | Q1 2025 | Notes |
|---|---|---|
| Revenue | ¥534.5 million | Sales of precipitated silica & silicon dioxide |
| Gross Profit | ¥181.5 million | Reflects production margins and input costs |
| Net Income | ¥137.6 million | After operating expenses and taxes |
| Key growth regions | Southeast Asia, Europe | Export expansion diversifies revenue |
- Product sales - direct and through distributors: bulk precipitated silica for tire compounding is the largest single revenue driver due to high volumes and recurring industrial contracts.
- Specialty/high-margin grades - custom-treated silicas for cosmetics and niche industrial applications command premium pricing.
- Technical services & toll processing - formulation support, co-development, and contracted manufacturing for partners add service revenue.
- Export & distribution channels - international sales to Southeast Asia and Europe broaden customer base and reduce domestic cyclicality risk.
- Global tire manufacturing demand strongly influences volumes and pricing for rubber-grade precipitated silica; tire sector trends (vehicle production, tire replacement rates, EV adoption) materially affect sales.
- Feed and animal-nutrition demand ties silica volumes to livestock production and feed formulation trends.
- Cosmetics and personal care demand varies with consumer spending and product innovation cycles.
- R&D investment: development of new particle morphologies and surface modifications creates applications in high-value segments (e.g., high-dispersion silicas for premium tires, micronized grades for skincare).
- Partnerships and collaborations: co-development agreements and strategic supply arrangements enhance market reach and secure long-term off-take contracts.
- Geographic expansion: targeting Southeast Asia and Europe increases export share and mitigates domestic demand fluctuations.
Quechen Silicon Chemical Co., Ltd. (605183.SS): How It Makes Money
Quechen Silicon Chemical Co., Ltd. (605183.SS) generates revenue primarily by producing and selling specialty precipitated silica-especially high-dispersion silica-used as a reinforcing and performance-enhancing filler in tire compounds and other rubber formulations. The company monetizes its technical expertise, production scale and customer relationships with global tire manufacturers, leveraging product quality, customization and logistics to secure long-term supply contracts.- Core products: high-dispersion precipitated silica and related silica-based materials for tires, rubber goods and industrial applications.
- Sales model: B2B contracts with major tire makers, spot shipments to regional compounders, and value-added technical support and formulation services.
- Value drivers: product performance (rolling resistance, wet grip), consistency, proximity to tire plants, and sustainability credentials.
| Metric / Item | Data |
|---|---|
| Reported net income (2024) | CNY 379.35 million |
| Main product focus | High-dispersion precipitated silica |
| Geographic expansion | Planned facility in Marseille, France |
| Primary customers | Major global tire manufacturers and regional compounders |
| R&D & capacity strategy | Ongoing R&D investments and capacity expansion projects |
- Market position: Recognized as a leading manufacturer of high-dispersion silica, supplying major tire makers worldwide and competing on quality and specialized formulations.
- European push: The planned Marseille facility is expected to strengthen European market access, reduce logistics cost for EU clients, and improve competitiveness vs. regional peers.
- Sustainability alignment: A focus on greener, lower-carbon products positions the company to capture demand as tire makers emphasize life-cycle and regulatory sustainability requirements.
- Financial health: A 2024 net income of CNY 379.35 million reflects stable profitability supporting continued CAPEX and R&D spend.
- Outlook drivers: Capacity expansion, deeper integration with key tire customers, and product development for next‑generation compounds.
Quechen Silicon Chemical Co., Ltd. (605183.SS) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.