About DA SEN HLDGS Company

We are mainly engaged in the manufacture and sale of wood-based plywood and wooden biomass pellets in China. Our plywood products are mainly made of poplar wood, including furniture boards, ecological boards (also known as melamine veneers), and solid wood multilayer boards. We use wood waste (also known as three leftovers) to produce wood biomass pellets. Our business and product history is limited. We first introduced plywood products in 2011 and wooden biomass pellets in 2013. However, during our track record period, we recorded significant growth. For each of the three years ended December 31, 2013, 2014 and 2015, our revenue was approximately RMB166.1 million, RMB317 million and RMB380.9 million respectively. Net profit attributable to the owners of the Company was approximately RMB20.3 million, RMB38.9 million and RMB45.2 million for each of the three years ended December 31, 2013, 2014 and 2015, respectively. During the record period, the increase in revenue and net profit was mainly due to the increase in the number of new and existing customers who continued to place orders, as well as our efforts to promote products and product development. During the record period, our plywood products continued to be our main source of revenue, accounting for more than 70% of our total revenue. Our plywood is generally used in furniture production and interior decoration and decoration of houses. Despite our short history of plywood, we still focus on quality control management and environmental management. In 2014, our plywood brand “Borema” was awarded the title of Top Ten Brands through an online evaluation conducted by China Wood Industry Network. As far as our plywood is concerned, we have also successfully obtained the environmental management system qualification “GB/T24001-2004 idt ISO 14001:2004” and obtained the “Solid wood plywood core meets formaldehyde emission standards: Phase II (0.05 ppm) certificate” in accordance with the California Air Resources Board (CARB) requirements for our plywood in 2014. According to the Ipsos report, the plywood market is very fragmented, with the five major companies accounting for about 0.69% of the total revenue of the industry, and we ranked fifth in terms of market share of the total revenue of the Chinese industry in 2014. We also produce wooden biomass pellets, which are clean and environmentally friendly fuels. When production began in 2013, we used wood waste from the plywood production process to produce wood biomass pellets, which allowed us to maintain a cost-effective business structure and expand our revenue streams. As our wood biomass pellet business expand and to meet our customers' growing demand for wooden biomass pellets, we are also purchasing wood slag from suppliers located close to our production plant. According to the Ipsos report, China's bioenergy industry is still underdeveloped, but it has recently received support from the Chinese government, such as the “12th Five-Year Plan for Biomass Energy Development” issued by the State Council in 2012, which aims to monitor and guide the long-term development of bioenergy. According to the Ipsos report, the wood-based biomass pellet market is very fragmented. The five major companies together accounted for about 2.33% of the total market value, and we ranked first in terms of market share in the total revenue of the Chinese industry in 2014.