Fujian Disheng Technology: Three Decades of Accumulation Behind a 9% Global Market Share

In the reply to the Beijing Stock Exchange IPO inquiry from Fujian Disheng Technology Co., Ltd., there is an easily overlooked number: in 2024, the company's global market share of UV absorbers was about 9%, and the global market share of light stabilizer products was about 4%. For a fine chemical company established less than ten years ago, being able to occupy nearly a tenth of the global UV absorber segment is not a small position.

Fujian Disheng Technology was established in August 2017, registered in Shaowu City, Nanping City, and is mainly engaged in the R&D, production, and sales of UV absorbers, hindered amine light stabilizers and their compounds, and intermediates. Such products are collectively referred to as light stabilizers and are widely used in anti-UV aging treatment for plastics, coatings, chemical fibers, and other materials, as well as in the sunscreen agent field in daily cosmetics. The actual controllers, Pan Xingping and Wang Ying, indirectly control 76.14% of the company's voting rights through the controlling shareholder Ningbo Disheng Asset Management and Disheng Enterprise Management.

The company's predecessor can be traced back to Hangzhou Xinyang Fine Chemicals, established in 1996, one of the earlier domestic enterprises engaged in light stabilizer production. It subsequently built production bases in Qidong, Jiangsu, and Yancheng, Jiangsu, and in 2017 integrated and established the current entity in Shaowu, Fujian. Nearly thirty years of industrial accumulation constitute the company's experience barrier in this segment.

UV absorbers are the company's core source of revenue, contributing 82.18% of main business revenue in 2025, while hindered amine light stabilizers accounted for 16.25%. Among downstream customers for these two types of products, international chemical raw material traders such as Songwon and Chitec have long ranked among the company's top five customers, together accounting for 12.13% and 6.49% respectively in 2025, indicating that the company's products have entered the procurement system of the international light stabilizer supply chain.

In terms of the proportion of overseas revenue, the company's figures from 2023 to 2025 were 52.93%, 55.44%, and 54.01% respectively (based on main business revenue), remaining above 50% year after year, covering markets such as Europe and the United States, South Korea and Japan, the Middle East, and Southeast Asia. Among downstream applications of light stabilizers, the automotive industry ranks first with about 30% of value share, followed by the construction and building industry at 23%. As global automotive lightweighting and weather resistance requirements increase and building energy efficiency standards become stricter, the demand base for such products is relatively stable.

The light stabilizer segment itself has a certain technical threshold. The production of UV absorbers and hindered amine light stabilizers involves complex organic synthesis processes, and product performance must pass long-term aging tests before it can gain downstream customer recognition. This is also one of the reasons why Disheng Technology can maintain overseas revenue at more than 50%; international chemical raw material traders are usually stricter in qualifying suppliers.

The company's sales model is mainly direct sales, maintaining a proportion of about 75% year after year, with the remainder sold through trader channels. A relatively high direct sales proportion indicates that the company has the ability to directly connect with end chemical brand customers, rather than relying entirely on intermediary trading links.

Financial data show that Disheng Technology's operating revenue increased from RMB 472.1112 million in 2023 to RMB 663.1461 million in 2024, and was RMB 684.6419 million in 2025, with cumulative growth of about 45% over three years. Net profit attributable to the parent company increased from RMB 55.6901 million to RMB 69.2515 million over the same period, and was RMB 74.7965 million in 2025.

The weighted average ROE remained stable at around 10%. Under the lower-of-the-two basis before and after deducting non-recurring gains and losses, it was 9.80% and 10.88% in 2023 and 2024 respectively, meeting the financial conditions for Beijing Stock Exchange listing. R&D investment as a proportion of revenue from 2023 to 2025 was 4.47%, 3.34%, and 3.27% respectively, and the patent reserve is 35 items, including 10 invention patents and 25 utility model patents.

The company has also successively obtained certifications such as national high-tech enterprise and national-level specialized, refined, distinctive, and innovative "little giant" enterprise, passed multiple management system certifications including ISO9001, ISO14001, ISO45001, and ISO50001, and completed product registrations in multiple countries and regions including EU REACH.

In terms of product line layout, the company is still producing classic varieties such as hindered amine light stabilizers 770, 292, and 3853, and also has mass production capability for multiple models of UV absorbers such as UV-P, 326, 327, 328, 329, 531, 360, 1577, and 1164, covering major technical routes such as benzotriazoles, benzophenones, triazines, and cyanoacrylates.

This product matrix covering multiple technical routes is a direct reflection of the company's nearly thirty years of industrial accumulation, and also gives the company more flexible product portfolio capability when facing customer needs from different downstream industries and with different performance requirements.

Another characteristic of the company's customer structure is relatively high dispersion. The top five customers together accounted for 38.11% in 2025, 38.48% in 2024, and 31.93% in 2023, with no single customer accounting for more than 50%, and revenue sources distributed among multiple international and regional chemical raw material purchasers. The company also holds Guangzhou Xinyouwei, which holds 30% equity in the wholly owned subsidiary Hangzhou Disheng. This affiliated company was also Disheng Technology's second-largest customer in 2025, accounting for 7.72% of revenue. This related-party transaction relationship has been specifically disclosed and explained in the prospectus.

In this IPO, Disheng Technology plans to raise RMB 400 million, of which RMB 300 million will be invested in the light stabilizer production base expansion project to add sunscreen agent production capacity, and another RMB 100 million will be used to repay bank loans. In its reply to the inquiry, the company explained the relationship between existing capacity utilization and the necessity of expansion, stating that as the proportion of high-end products increases and downstream demand grows, existing capacity will gradually become tight.

Disheng Technology's first round of inquiry reply was disclosed on September 23, 2026. The reply is 445 pages long and covers ten aspects, including whether market space is limited, the reasonableness of sustained growth in operating performance, and hazardous chemicals management and production and operation compliance. The hazardous chemicals management section involves a production safety accident that occurred during the reporting period, and the company explained the rectification situation and safety management system in its reply.

The company's current Beijing Stock Exchange IPO review status is "inquired." In 2025, operating revenue growth fell from 40.46% the previous year to 3.24%. The company attributed this to a decline in revenue from some overseas products and intensifying domestic market competition. Whether this explanation can be supported by more detailed data in subsequent disclosures remains unanswered for now.