Shandong Tongcheng Medicine Co., Ltd

About Shandong Tongcheng Medicine Co., Ltd

Shandong Tongcheng Medicine Co., Ltd, which was founded in 2009 by the company's CEO, Mr. Liu. Before the founding of the company, as early as 2005, Mr. Liu had already started his own business: he built a small chemical plant and produced fewer types of products. With the expansion of the company's business, in order to meet the needs of the market, in 2009, a brand-new company was established on the new production base. This is Tongcheng, which we are familiar with today. In 2016, we successfully listed on the New Third Board trading market. Compared with the main board market, although the new three board has many restrictions on trading participants, because of its low entry threshold, it can allow listed companies to raise funds for their own development in a shorter period of time. On the other hand, in order to meet the requirements of the New Third Board, we have made major changes in the company's operation and financial management regulations, and this change will greatly benefit our future IPO preparations. In 2018, in order to expand the company's supply chain, we established a supply chain management company - Zhejiang Tongcheng supply chain management, mainly engaged in import and export and custom processing products. By working closely with our partners, we enrich our product supply chain and find new directions and opportunities for the future development of our own factories. In 2019, we successfully acquired a small chemical plant - Shouguang Tongxin. The company's qualifications for chlorine have enriched our range of chlorinated alkanes to further meet the diverse needs of our customers. Our products consist of three main categories: brominated alkanes, chlorinated alkanes and custom processed products. Our actual output in 2018 is: 5, 300 tons of bromine products, 9, 000 tons of chlorine products, and 500 tons of custom processed products. The main raw materials for our products are hydrogen bromide, hydrogen chloride and alcohol. The company has 6 workshops, the first and second workshops are bromine product workshops, the fifth and sixth workshops are chlorine products, the third workshop is a customized product for pesticides, and the fourth workshop is a pilot workshop led by the R&D team. From 2016 to 2018, our sales increased by 20% per year. In 2017, the net profit margin exceeded 50% , and the net profit margin in 2018 exceeded 90% . We actively use advanced purification technology to extract raw materials from by-products and reuse them in production, making maximum use of existing resources and reducing environmental impact. The remaining concentration of hydrobromic acid which was completely unusable and entered the wastewater treatment process was 0.07% , and the concentration of hydrochloric acid was 0.5% . The entry barriers for China's chemical industry have become higher and higher. With the continuous strengthening of environmental protection and safety regulations, the number of chemical companies is also shrinking. But this trend has brought us unprecedented opportunities, and we have seen a strong growth in our business. In order to maintain the long-term healthy and stable development of the company, on the one hand, we will continue to expand the production scale of existing products to reduce our own production costs, and provide customers with more economical product solutions, thereby consolidating and expanding the market share of existing products. At the same time, through the innovation of the R&D department, the cooperation with partners, and the acquisitions already started, we will further enrich our product supply chain to meet the diversified needs of the market. Finally, we will begin preparations for the IPO from 2019 and strive to successfully list in 2022. We hope that the integration into the capital market will enable the company to make all-round changes to meet the future development needs of the chemical industry.