Boshen Co., Ltd.
Address: No. 403, Yuhua East Road, Hebei High-tech Industrial Development Zone
Company Overview
Boshen Co., Ltd. (hereinafter referred to as "Boshen" or "the Company") was founded in 1994. The company is headquartered in Shijiazhuang and has 8 wholly-owned subsidiaries in the United States, Canada, Thailand, Shijiazhuang, Changzhou, Shanghai, and Shandong, China. The main production bases are located in Shijiazhuang, China, Changzhou, Jiangsu, Jining, Shandong, and Rayong, Thailand. It was listed on the Shenzhen Stock Exchange in 2009 and is a large-scale listed company in the domestic diamond tool industry. In 2022, Tietou (Jinan) Equity Investment Fund Partnership (Limited Partnership) became the company's controlling shareholder, and the State-owned Assets Supervision and Administration Commission of the People's Government of Shandong Province became the company's actual controller. At present, the company's business covers three areas: diamond tools, coated abrasives, and rail transit equipment parts. 1. Diamond tool business segment The company is one of the largest enterprises in the domestic diamond tool industry. It mainly adopts the dealer model to sell products. Its marketing network covers both at home and abroad, and its dealers are all over the country. The company's main diamond tool manufacturing bases are located in Shijiazhuang headquarters and Rayong Industrial Park in Thailand. It has sales subsidiaries in the United States and Canada. Its overseas customers cover multiple overseas markets such as the Americas, Europe, Southeast Asia, the Middle East, and North Africa. It is one of the few diamond tool companies in the same industry in China with a global sales network. Diamond tools mainly include diamond circular saw blades, diamond thin-wall engineering drill bits, diamond grinding discs, grinding blocks, polycrystalline diamond tools and other products. They are effective processing tools for inorganic non-metallic hard and brittle materials such as stone, ceramics, and concrete; the company also produces some power tools and alloy tool products. Power tools mainly include desktop and handheld engineering drills, saws, angle grinders, electric hammers, electric picks and other products. They are commonly used machines and tools for building decoration construction; alloy tools mainly include carbide circular saw blades, etc., which are mainly used for cutting wood, aluminum alloy materials, aluminum-plastic profiles, non-ferrous metal materials, etc. 2. Coated Abrasives Business Segment Coated abrasives are known as "industrial teeth" and "industrial beauticians". They are widely used in the grinding and polishing of metal, wood, leather, glass, plastic, ceramic and other products. They are also widely used in the manufacturing industries of aircraft, automobiles, ships, machine tools, home appliances, furniture, metal products, etc. In November 2017, Boshen Co., Ltd. completed the acquisition of Jinniu Grinding. Its main business added the research and development, production and sales of coated abrasives on the basis of the research and development, production and sales of diamond tools. The company's business has expanded from the original diamond tools to the field of coated abrasives, which also belongs to the abrasives industry. As one of the largest companies in the coated abrasives industry, Jinniu Grinding's main business is the research and development, production and sales of sandpaper and emery cloth. It is the vice chairman unit of the Coated Abrasives Branch of the China Machine Tool Industry Association. After the reorganization with Jinniu Grinding, the company has become one of the largest listed companies in China's abrasives products industry. 3. Rail Transit Equipment Parts Business Segment Since its establishment, the company has accumulated rich powder metallurgy technology and talents based on the core business of diamond tool business, which provides a solid foundation for the company to extend products and cultivate new businesses along the powder metallurgy technology route. The manufacture of diamond tool heads and friction blocks of high-speed train brake pads both uses powder metallurgy technology, and some raw materials are the same and the processing technology is similar. The company took advantage of its accumulated technology and talent advantages over the years and established the Rail Transit Equipment Division in 2015. Taking the industrialization of high-speed rail brake pads as the entry point, it entered the field of rail transit equipment and focused on cultivating the company's new business. In July 2017, the company decided to invest 61.31 million yuan to build the "Rail Transit Braking Device Material Engineering Laboratory" project. In May 2019, the core experimental equipment and 1:1 brake friction test bench of the laboratory project have been put into use, and the construction of the intelligent production workshop has been completed. At present, it has an annual production capacity of 80,000 EMU brake pads, which has laid a solid foundation for the industrialization of the company's EMU powder metallurgy brake pads. In August 2020, the company wholly controlled Wenzhou Haiwei Locomotive Parts Co., Ltd., and Haiwei Locomotive became a wholly-owned subsidiary of Boshen. Haiwei Locomotive is a supplier of brake discs for EMUs, mainly engaged in the research and development, production and sales of various series of brake discs and cylinder heads for diesel locomotives. After controlling Haiwei Locomotive, the company added the research and development, production and sales of rail transit brake disc products on the basis of high-speed rail brake pad products, and the product layout of the rail transit parts business was further improved. Moreover, brake discs and brake pads are mutually complementary components in actual use. The company can integrate internal and external R&D, customer and other resources to enhance the linkage R&D, production and sales of brake pads and brake discs, and enhance the competitiveness and market share of listed companies in the field of rail transit equipment parts. Looking to the future, the company will aim at high-end manufacturing, with hardware tools, coated abrasives, rail transit equipment parts and components as the core, and domestic and foreign markets will develop in a coordinated manner. Endogenous growth and external mergers and acquisitions will complement each other, and Boshen Co., Ltd. will be built into an excellent listed company with outstanding profitability, obvious core advantages, and solid and stable.