We have an established branding with market-leading position in Malaysia and Indonesia.
Based on the Industry Report, we are one of the leading market players for two-wheelers aerosol refinishing and refurnishing products with an estimated market share of 27.0% and 5.0% in Malaysia and Indonesia, respectively. Furthermore, we have obtained numerous accolades and awards for our patented 2K Samurai products. We seek to continue to build and strengthen our “Samurai” brand through social media platforms, workshops and exhibitions. We believe that our established branding and market-leading position foster brand loyalty among our customers and help to market our products to potential customers.
We are well-positioned in attractive end-user market segments.
Based on the Industry Report, the two-wheelers aerosol refinishing and refurnishing industry saw a combined sale of approximately 118 million units of aerosol spray paints in selected countries such as Malaysia, Indonesia, Thailand and Vietnam. Indonesia, being the biggest market, is expected to grow at a CAGR of 9.8% from 2015 to 2020. This growth can be attributed to the growing number of two-wheelers and an increasing awareness of aerosol spray paint products in the region. We believed that with our market-leading position in Malaysia and Indonesia, we are well-positioned to capitalise on the growth in the two-wheelers aerosol refinishing and refurnishing industry.
We have an innovative product with patented technology
By leveraging on our strong research and development capabilities and registered patents for our key technologies, we have developed an aerosol container system with a two-component design that allows the hardener and paint solution to be mixed just prior to use. As a result, our products are easy to use, deliver a highly durable finish which is chemical, scratch and weather resistant. Further, our innovative nozzle technology allow for a wider and more uniform spray pattern that provide excellent coverage and more control compared to conventional aerosol products.
We are committed to research and development to continue to enhance our product offerings. As at the Latest Practicable Date, we have 12 registered patents and another 13 patents pending registration in our IP Territory. Our patents include key technologies such as our dual head and single head 2K systems.
We have an established and long-term relationship with our distributors, major suppliers and major customers.
We believe that cultivating and maintaining good business relationships with our distributors, wholesalers and suppliers are crucial to our success. As at 30 June 2016, we have more than 300 long term customers who have maintained business relationships with us for periods exceeding five (5) years.
As at 30 June 2016, four (4) of our top eight (8) suppliers have supplied us for 10 or more years. We believe that our long-standing relationships with our suppliers can ensure the stability and quality of products supplied.
We have an established track record of operational excellence, technological breakthrough and awards
Through our focus on our research and development efforts, quality of our products and services, we have established a strong track record of operational excellence and technological breakthroughs since our inception in 1997. Our significant achievements include obtaining the ISO9001:2008 certification in the manufacturing of aerosol spray paint, and having a technological breakthrough invention of the single head 2K system to mix two chemicals within an aerosol can whenever required. In addition, we have an excellent track record in industrial design of the dual head 2K system which has generated great interest among the motorcyclists in Southeast Asian countries. Please refer to “General Information on our Group – Intellectual Property Rights” of this Offer Document for more details.
We have an experienced and dedicated management team
Our Group is led by an experienced and dedicated management team, under the leadership of our Executive Director and CEO, Mr Ong Yoke En, who has more than 20 years of experience in the aerosol industry. Mr Ong Yoke En’s intimate knowledge of the industry, extensive business experience and network have been instrumental in the growth of our Group. Under his leadership, our Group’s revenue has grown by approximately RM14.7 million from approximately RM15.9 million in FY2014 to approximately RM30.6 million in FY2016. He is also supported by Ms Lim Lay Yong, our Executive Director and COO, and Ms Puah Thye Lay, Ms Sia Shu Yee, Ms Lee Siong Kim and Mr Voon Kian Woon, our Executive Officers. Please refer to the section entitled “Directors, Executive Officers and Employees” of this Offer Document for more details.
We believe that we are well-positioned to leverage on the extensive experience and business acumen of our management team with more than five (5) years of experience in their respective areas of expertise, to achieve continued long-term growth of our Business.