Hz info:July 4, 2025 - The "Environmental Impact Report Form for the 80,000 Tons/Year Paint Optimization and Upgrade Project" of Anhui Hechen New Material Co., Ltd. was officially accepted for public announcement, marking the beginning of a new chapter in the company's product structure adjustment.

The core of Hechen's upgrade lies in the strategic reshaping of its product portfolio. The project, with a total investment of 17.9221 million yuan, is located in the Cihu High-tech Industrial Development Zone in Ma'anshan. Leveraging the existing 55,411.96 square meter factory site and an 80,000 tons/year furniture paint production line, it involves adding a small number of production equipment such as mixers and sand mills, along with one set of exhaust gas treatment facilities. This will convert part of the original polyester resin paint into industrial paint, and adjust part of the water-based paint into industrial water-based paint and vinyl perchloride putty. Ultimately, it will form a new product matrix with an annual output of 60,000 tons of solvent-based paint (including 52,000 tons of furniture paint and 8,000 tons of industrial paint), 20,000 tons of water-based paint (including 18,000 tons of furniture paint and 2,000 tons of industrial paint), and 1,000 tons of vinyl perchloride putty. Crucially, while maintaining the total capacity at 80,000 tons, technological optimization has significantly reduced the use of organic solvents, making the production process greener and more environmentally friendly.

As a holding subsidiary of Qigu (Beijing) Technology Group Co., Ltd., Anhui Hechen New Material Co., Ltd. has primarily focused on high-end furniture paint production since its commissioning in 2016. This adjustment represents Hechen's proactive response to profound market shifts. Data from Maihuas Research Institute shows a robust growth momentum in the industrial coatings market. With the transformation and upgrading of China's manufacturing industry, particularly the rapid development of high-end sectors such as new energy, automotive, shipbuilding, and aerospace, demand for high-performance industrial coatings continues to surge, and its share in the overall coatings market is steadily increasing. In 2024, China's industrial coating output reached 26.48 million tons, a 6.1% increase, with the market size hitting 351.7 billion yuan, showcasing the market's potential. Against this backdrop, Hechen is determined to break through its single-product positioning, expanding into diversified areas covering both furniture paint and industrial paint to enhance corporate resilience and market adaptability.

After being honored with the "Influential Brand in Furniture Paint" award at the 2025 China Coatings & Waterproofing Industry Summit, Wu Hao, Chairman of Qigu Group, emphasized that the accolade serves as authoritative recognition of the group's achievements in multi-dimensional innovation. Over the past year, the group has successfully shaped a professional image and entered the luxury home furnishing supply chain by systematically optimizing its multi-brand matrix and implementing a high-end "Dual-Customization Strategy." Facing channel transformations, Wu highlighted the innovative adoption of a "one agent, one policy" nanny-style support model to deepen manufacturer-distributor collaboration, providing comprehensive, multi-dimensional service support throughout the entire customer journey – pre-sale, during sale, and post-sale – covering products, policies, sample making, and color matching. In green development, the group persists in R&D for high-end, environmentally friendly PU products that meet or exceed national standards, while vigorously promoting more eco-friendly options like water-based paint, UV paint, and natural wood oils. Addressing overseas expansion challenges, Wu pointed out that technological strength and cost control are foundational, but localized operational capabilities are the key to sustainability. This includes establishing local supply chains, adapting to local standards, and building brand trust. To this end, the group is building a cross-border e-commerce direct sales channel for overseas DIY paint demand and adopting a dual-drive strategy of "technical optimization + cost control," while accelerating the layout of manufacturing bases in Southeast Asia. The Indonesian factory is expected to commence operations in the second half of 2025.

Wu Hao, Chairman of Qigu Group

Notably, Qigu Group recently completed a significant asset adjustment involving a subsidiary. Its wholly-owned subsidiary, Shandong Shiquanxing New Material Co., Ltd., underwent an equity change on June 23, 2025. The shareholder was changed to Tai'an Runde Enterprise Management Consulting Co., Ltd., the legal representative changed from Wu Hao to Cao Lei, and the registered capital increased to 33 million yuan. Subsequently, on July 3, the company's business scope was officially adjusted to focus on "production and sales of new environmentally friendly materials and wood coatings." This divestiture move potentially provides a clearer layout for the group to concentrate resources on its core strategic directions.

Looking across the industry, the transformation of Hechen and Qigu Group is not an isolated case but reflects a collective strategic shift among furniture paint enterprises. Baichuan Chemical is investing 120 million yuan to build a photocatalytic water-based coating project, expected to significantly expand its product line into the industrial coatings sector upon completion in 2025. Huilong Coatings announced its pivot towards industrial paint in 2024. Yin Zhiming, its Deputy General Manager, clearly stated the company's future adherence to a dual-track parallel strategy of "furniture paint as the core, industrial paint as the expansion direction," and has already launched market-validated industrial paint products leveraging its profound technical expertise. Similarly, the traditional furniture paint giant Junzi Lan has also shown clear intentions to enter the industrial coatings field.