Comprehensive Overview

The group is a manufacturer of fine chemical products based in China. The group mainly focuses on manufacturing, R&D and sales of fine chemical products, which can be widely used for various purposes, including hardware and building materials and automobile repair. The Group's products can be broadly divided into the following segments: i) aerosols, ii) organic silicone adhesives, iii) synthetic adhesives, and iv) other miscellaneous products, such as architectural coatings, oils and wood paints.

According to Frost & Sullivan, in terms of the sales value of aerosol products and adhesives and sealants, the Group's total market share in China in 2018 was about 0.4%. In terms of aerosol products, industrial and automobile fog products, and the sales value of adhesives and sealants, the Group's market share in China in 2018 was about 0.5%, 1.4% and 0.3%. The Group was the second largest paint manufacturer in China in terms of sales value in 2018, with a market share of 2.4%.

Risk Factors

The Group relies on distributors to sell and market the Group's products. As of December 31, 2018, the revenue generated from sales to distributors accounted for 90.0% of the Group's revenue. If the group is unable to maintain an effective distribution network for its products or manage the activities of the group's distributors, the group's business may be adversely affected.