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Following Dongfang Yuhong, another Chinese coating/waterproofing company entered United States

On the evening of September 29, Matsui shares (688157. SH) issued a voluntary disclosure announcement: it intends to invest in the establishment of wholly-owned subsidiaries Matsui New Materials (United States) Co., Ltd. and Matsui (United States) Property Co., Ltd. in California, United States, with its own or self-raised funds of US$5.8 million, respectively for the construction of the United States Technology and Service Center project.

This is the second step after Oriental Yuhong (002271. SZ) held a groundbreaking ceremony for its Houston production and R&D logistics base in August, another Chinese coating/waterproofing company invested in the United States to build a factory/set up a company.

Following Dongfang Yuhong, another Chinese coating/waterproofing company entered United States

Matsui said that the move aims to enhance the company's competitiveness and brand influence in the global market through the purchase of land, factories and advanced equipment. The total investment amount of the project initially assessed by Matsui is 5.8 million US dollars, but the actual investment amount of the project shall prevail. In terms of specific distribution, Matsui (United States) Property LLC will invest US$3.5 million in the purchase of land and plants; Matsui New Materials (United States) Co., Ltd. plans to invest $2.3 million to focus on the construction of laboratories and testing equipment.

The whole project is expected to take 12 months, and will be mainly used for the research and development and proofing of new functional coating materials, and provide small batch production, warehousing, marketing services to meet the rapid delivery needs of downstream customers, so as to further enhance and improve the company's global system marketing and technical service capabilities, and provide a strong guarantee for the company's business development.

The announcement pointed out that the outbound investment matters still need to be approved by the relevant domestic government departments and the local authorities of United States, and may face risks such as changes in the political and economic environment at home and abroad in the actual process of promotion, and there are certain operational and management risks due to the differences between the United States and the domestic legal system, policy system, business environment, cultural characteristics, etc. The source of funds for this foreign investment is the company's own or self-raised funds, and the wholly-owned subsidiaries established by the investment will be included in the company's consolidated financial statements, which will not have a significant adverse impact on the company's financial and operating conditions.

Following Dongfang Yuhong, another Chinese coating/waterproofing company entered United States

Matsui said that the construction of technology and service centers in the United States is an important part of the company's implementation of the global strategic layout.

Targeting the high-end consumer electronics and passenger automotive sectors, Matsui is a global manufacturer of new functional coating materials that provides customers with multi-category systematic solutions such as coatings, inks, and adhesives. It successfully IPO on June 9, 2020, and is the first A-share listed company on the Science and Technology Innovation Board of the Shanghai Stock Exchange with advanced new functional coating materials as its main business.

In the first half of this year, Matsui's revenue, net profit and other indicators have increased significantly. The company's high-end consumer electronics field achieved a total operating income of 271 million yuan, a year-on-year increase of 35.67%, of which mobile phones and related accessories, notebook computers and accessories, and wearable devices achieved year-on-year growth of 32.85%, 6.64%, and 77.32% respectively. In the field of passenger vehicles, during the reporting period, Matsui Co., Ltd. took CMF innovative solutions as the starting point, continued to develop the market in the field of interior and exterior coatings, and achieved an operating income of 46.6737 million yuan, a year-on-year increase of 16.85%.

Following Dongfang Yuhong, another Chinese coating/waterproofing company entered United States

Regarding the necessity of this foreign investment, Matsui said that this is a decision based on the company's strategic development needs, the company focuses on high-end consumer electronics and passenger cars and other application fields, and combines the regional distribution characteristics of the industrial chain to carry out the global technology and service network layout, to achieve effective penetration of the global market.

As an important gathering place for terminal brands in the global high-end consumer electronics and passenger automobile industry, United States has many world-renowned brand enterprises such as Apple, Microsoft, Google, Amazon, HP, Meta, Tesla, General Motors, and Ford. Since 2015, the company has realized the sales of coating material products in global terminal brands, and has many overseas high-end customer groups such as North American consumer electronics customers (Apple), Microsoft, Google, HP, Amazon, Meta, North American T Company (Tesla), and has established long-term and stable cooperative relations with them.

As the existing technical service model will be difficult to meet the continuous growth of customers' various needs, the construction of United States technology and service center can serve customers in United States and other parts of North America nearby, improve the response speed of technical services, improve customer service quality and strengthen customer sticky connection, and further expand the company's global brand influence and international competitiveness. On the other hand, it will help the company to develop more new overseas high-end customer groups, especially passenger car customers, broaden business channels and enhance the company's business scale.

In 2022 and 2023, Matsui Co., Ltd. will set up subsidiaries in Viet Nam and India respectively, and set up a production and technical marketing base centered on Matsui Viet Nam, and its business radiates to the Southeast Asian and India markets. Matsui's overseas market penetration has been further accelerated, the construction of the three-in-one product strategic system of "coating + ink + adhesive" has been promoted in an orderly manner, new project cooperation opportunities in the ink business have come one after another, and the development momentum of the adhesive business has been good, and the company's revenue in 2023 has increased by 202.08% year-on-year.

Following Dongfang Yuhong, another Chinese coating/waterproofing company entered United States

Matsui New Materials (Viet Nam) Co., Ltd. real picture

Through Matsui's further increase in globalization, we can also get a glimpse of the areas that the company may actively deploy in the future.

A few days ago, Matsui shares disclosed the reception of the research announcement mentioned that the future growth potential of the company's high-end consumer electronics business will focus on two businesses: first, high-end consumer electronics business, the company is expected to promote business growth through technological innovation and product service differentiation, as well as in-depth excavation of market demand; Second, it plans to expand its market share in market segments such as laptops, wearables and smart home appliances, and promote the implementation of the three-in-one product system of "coatings, inks and adhesives" to bring new performance growth points.

In 2017, Matsui Co., Ltd. began to lay out the field of passenger automotive coatings, and concentrated on creating a second strategic development curve outside the field of high-end consumer electronics coatings. After years of precipitation in technology and market ports, the revenue scale of Matsui's passenger car field has entered a rapid growth cycle.

From 2020 to 2022, the company's revenue in the field of passenger vehicles will be 5.9997 million yuan, 22.4623 million yuan, and 67.0251 million yuan respectively, with a compound growth rate of 234.24%; In 2023, the revenue of the passenger car field will further increase, reaching 98.6834 million yuan.

Following Dongfang Yuhong, another Chinese coating/waterproofing company entered United States

For the future layout of automotive coating materials business, Matsui Co., Ltd. said that the company took the auto parts coating market as the entry point to achieve the layout of "from interior to exterior" and "from small to large". It has built a R&D system for automotive OEM and aftermarket coating materials based on resins, colorants, etc., in preparation for entering the field of automotive OEM and aftermarket coating materials.

Following Dongfang Yuhong, another Chinese coating/waterproofing company entered United States

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