○  Project Name: Research on investment opportunities in 5 major target sectors (5 major target sectors referring to chemical new materials, polyurethane adhesives, electronic chemicals, acrylic emulsions, high-grade rubber boards and latexes)

○ Entrusting Party: A large state-owned enterprise in China. Major businesses include rubber/plastic products, engineering plastics, fine chemicals, new materials, electronic chemicals and new energies.

○  Project Goal: Conduct scanning to the 5 major target sectors, sort out development opportunities in these sectors and provide essential market and industrial basis to the client in the formulation of investment strategies and plans

○  Method: The project was divided into 3 phases, totaling 16 working weeks.

-  First Phase: Market potentials in the 5 major sectors were diagnosed in combination with existing businesses and products of the client. Products with development prospect in these sectors were screened out.

-  Second Phase: Further screening to products scanned out in the first phase was made through discussions and deliberations with the client. 4 target products needing primary study were finally defined. CNCIC Consulting made more intensive and detailed research on value chain analyses, environmental policy impacts, technology sources, application sectors, competition modes, entry barriers, consumer demands and potential substitutes regarding the 4 target products.

-  Third Phase: Conclusions and suggestions on investment opportunities in above 4 target products were provided to the corporation as client. Contents included project investment scales, anticipated rates of return on investment, sales revenues in normal years, advantages, disadvantages, risks and market entry strategies (including comparisons of advantages, disadvantages and feasibilities between self-constructed units and M&A or cooperation schemes).

○ Achievement: Through three-phase survey and research, CNCIC Consulting defined breakthrough points for the client in the formulation of development strategies and plans.

-  Development sequence: The development of lithium cell electrolyte should be given priority. The development of acrylic emulsions should then be considered. Dynamics of technologies for water-based polyurethane adhesives should be closely followed. Attention to extra-clean high-purity reagents in electronic chemicals should be paid. The technical level of existing ultra-clean high-purity reagents should also be upgraded.

-  Development mode: Different development modes for the 4 target products such as production scale expansion, marketing tactics shift, technical cooperation, production cooperation and downstream application cooperation were proposed. Suggestions on locations for the future development of the 4 target products were also proposed.