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 panels, ecological boards (also known as melamine veneers), and solid wood multi-layer boards. We use wood residues (also known as three leftovers) to produce wood biomass pellets. Our business and product history is limited. We first launched plywood products in 2011 and wooden biomass pellets for the first time in 2013. However, during our track record period, we recorded significant growth. For each of the three years ending 2013, 2014 and December 31, 2015, our revenue was approximately RMB 166.1 million, RMB 317.0 million, and RMB 380.9 million respectively. Net profit attributable to owners of the Company was approximately RMB 20.3 million, RMB 38.9 million, and RMB 45.2 million for each of the three years ending December 31, 2015, respectively. During the track record period, the increase in revenue and net profit was mainly due to increasing the number of new and existing customers placing orders, as well as our efforts to promote products and product development. During our track record period, our plywood products remained our main source of revenue, accounting for more than 70% of total revenue. Our plywood is generally used in furniture production and home interior decoration and decoration. Although our plywood history is short, we still focus on quality control management and environmental management. In 2014, our plywood brand “Knorma” 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” in 2013 and obtained the “Solid Wood Plywood Core Meets Formaldehyde Emission Standards: Stage 2 (0.05ppm) Certificate” in accordance with the requirements of the California Air Resources Board (CARB) for our plywood in 2014. According to the Ipsos report, the plywood market is very fragmented, with the five largest 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 wood biomass pellets, which are clean and environmentally friendly fuels. When production began in 2013, we used wood residues from the plywood production process to produce wooden biomass pellets, which enabled us to maintain a cost-effective business structure and expand revenue sources. As our wood biomass pellet business expand and to meet our customers' growing demand for wood biomass pellets, we are also purchasing wood pellets from suppliers located close to our production plants. According to the Ipsos report, China's bioenergy industry is still not mature, 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 regulate and guide the long-term development of bioenergy. According to the Ipsos report, the market for wood-based biomass pellets made from wood 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 of the total revenue of the Chinese industry in 2014.