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China Greenlights Donglai Coating Technology’s STAR IPO

2020.08.09 CoStone Capital Views:


August 7th, China’s securities regulator approved the IPO registration of Donglai Coating Technology Co., Ltd. It then will be listed on the Shanghai Stock Exchange's sci-tech innovation board, commonly known as the STAR market, adding a fifth STAR company to CoStone’s portfolio.




August 7th, China’s securities regulator approved the IPO registration of Donglai Coating Technology Co., Ltd. It then will be listed on the Shanghai Stock Exchange's sci-tech innovation board, commonly known as the STAR market, adding a fifth STAR company to CoStone’s portfolio.

The Company, founded in 2005, provides high-tech and high value-added paints out of advanced petrochemicals, including car refinish paint, fluorocarbon protective paint, interior & exterior parts paints, 3C advanced paints. The company helps customers to find befitting color formula as well.

As an industrial leader, Donglai ranks Top 3 in the 2019 Chinese Patent Statistical Analysis Annual Report of Automotive Coatings at the annual meeting of the China National Coatings Industry Association. Donglai is also the only Chinese brand among the top 5 companies. 

Donglai’s giant competitors like Pompeii, Ashmore, AkzoNobel, BASF, are also solid evidence of its industrial status.

Donglai is the only Chinese brand among the 11 top producers in the Chinese market of car refinish paint that has been certified as original product manufacturers or a qualified automotive OEM supplier. 

Donglai’s brands: onwings®, onwaves®, Fixs® are registered and protected in over 80 countries globally. Over 20 car brands including FAW-Volkswagen, FAW-Audi, Dongfeng Nissan, Changan Ford, SAIC-GM, Volvo, Lincoln China, Infiniti have granted Donglai the status of Tier 1 Supplier, the best form of cooperation in the industry.

Donglai, after 20-year growth, is one of the rarest Chinese brands with over 20 OEM certifications, a must for qualified refinish paint market players. Donglai’s status is hard to win for the high entering barrier which can only be stepped over by long-term and high standard investment in R&D, production management, service systems. 

For years in China’s market, Donglai embraces a natural advantage in decision-making, follow-up R&D, relationship with clients.


Car Brands granting Donglai’s car refinish paints with C/O or admitting Donglai as a qualified automotive OEM supplier.


Car brands acknowledging Donglai’s design of interior & exterior parts paints, certifying Donglai’s products as C/O and admitting Donglai’s mass production performance



Research and Market has reported that China occupies a great share of the 147.2 billion USD international paint market with about 40 billion USD. However, the consumption side of China pales in comparison with the developed Europe and North America. At 28.37 USD consumption of paints per capita, China sees a huge market potential and a sound momentum.

Started in 2017, CoStone holds 6.2% Donglai pre-issuing shares.


CoStone believes that as a match of international giants, Donglai will one day become a match of international giants or even replace them in China’s market. 




Rewritten by Chen Cong, Edited by Li Yunzhen, Du Zhixin

The year 2019 marks the fortieth anniversary of China’s Reform &Opening-Up, once again, we meet at the turning point of history. What’s the next step for the game, is there any clear guidance? The answer is affirmative.

Our country is enjoying a good momentum of development, which does not come from the Washington Consensus nor the Beijing Consensus. China’s experience has proved that both the visible hand and the invisible hand are crucial: the visible hand, stands for the government-led reform, and would yield benefits for reform and opening up; the invisible hand, stands for the Marginal Power represented by the private sector, and would improve economic efficiency and tax collection, create jobs and employment opportunities.

Provided that we want to protect and expand the benefits form reform, three simple but mandatory agreements are to be made and followed: No.1 Private ownership must be recognized, protected and treated equally with public ownership constitutionally, both ownerships are scared and inviolable;No.2 Make further clarification of the principal position of market economy, “deepen economic system reform by centering on the decisive role of the market in allocating resources”, as President Xi addressed in the third Plenary Session of the 18th CPC Central Committee;No.3 Implement the guiding principles of “comprehensively promoting law-based governance” of the fourth plenum. The rule of law is essential for economic growth, irreplaceable to protect private ownership, and necessary to encourage innovation and entrepreneurship.

Above are three rules for us to avoid falling into the Middle-income Trap. Assuming that we are breaking systematic barriers to private enterprises’ participation in market economy, and boosting innovation and entrepreneurship of our society, then we are heading towards a promoting direction. We are marching in the path of light, regardless of the ups and downs of Sino-US relationship, the drop in GDP growth rate, or the monetary policy.

These principals also apply on knowing how better to run a business: don’t be hedged by rules and regulations at the beginning, pay more attention to your survival, and you’ll learn more when you start your second business.

For many years, Huawei has been the only Chinese company on the list of the Top 50 R&D Spenders. Regardless of the economy and its income, what Huawei has been doing is investing in its future, dedicated to R&D, continuously and resolutely. This provisional work underscores Huawei’s accomplishments, making Huawei anindustry leader.

So, there are standard answers on how to run a company,which could be summarized as concentration and professional dedication, continuous investment on innovation and trying harder in R&D. Entrepreneurship is also important, every single company needs entrepreneurs to push aside all obstacles and difficulties, to implement strategies and ideas. We, as investors, are destined to look for such outstanding entrepreneurs and their companies, invest in them and partner with them.

At this key point of history, a country, a company, or asingle individual, will all need to find the right path. Four decades after the Reform and Opening-up, it’s time to learn from our experience and stop “wadding across


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