Diwang Industrial Holdings Limited (“the Group”) mainly engages into two businesses: R&D, manufacturing and sales of finishing agents and synthetic resins ("Faux Leather Chemicals Business") and the production and sales of liquor products ("Chinese Liquor Business") in the second quarter of 2022.

 

Faux Leather Chemicals Business

 

Zhejiang Sunlight Material Technology Co. Limited, a wholly owned subsidiary of the Group, is an established faux leather chemicals manufacturer in the PRC principally engaged in the research and development, manufacturing and sale of coating agents, namely colourants, finishes, additives and synthetic resins. Our products for the manufacturing of synthetic leather have wide applications in different industries, including apparel, footwear, handbags, automobile interior decoration, home furnishings and sports equipment.

 

We are committed to enhance and improve our research and development capabilities. Our research institute was recognized as an Enterprise Research Institute at Provincial Level. We owned 36 patents and have made five patent applications in China. Over the years, we have also been awarded with several honors and recognitions for our products, such as “National Torch Plan Industrialization Demonstration Project”, “Zhejiang Excellent Industrial New Product” and “Provincial Key High-tech Product”. In addition, we have been collaborating with academic institutions to enhance the functionality, features and varieties of our existing products and develop new technologies to be used in our products.

 

Chinese Liquor Business

 

The Group began manufacturing and selling of Chinese baijiu products in the PRC with a view to exploring business opportunities in the food and beverage business in the PRC.

 

貴州帝☉池王醬酒業有限公司 (Guizhou Dichiwang Sauce And Wine Company Limited*) (“Guizhou Dichiwang”), a non-wholly owned subsidiary of the Company was established under the laws of the PRC in which the Group indirectly owns 70.5% of its equity interest and 湖南金鎧文化傳播有限〗責任公司 (Hunan Jinkai Culture Communication Company Limited*) owns 29.50% of its equity interest. Guizhou Dichiwang procures all necessary raw materials itself in producing Chinese baijiu products and outsources the manufacturing process through an original equipment manufacturer to an independent wine factory to produce Chinese baijiu products. The Chinese baijiu products of Guizhou Dichiwang comprise a comprehensive range of products with varied packaging, alcohol content, design, taste etc., targeting the young to middle-aged public to middle class consumer market in the PRC. Guizhou Dichiwang’s Chinese baijiu products are sold under the “Diwang Chi”（帝王池）label.