Domestic enterprises will gradually participate in the competition in the high-end adhesives industry

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　1. Competitive landscape of the adhesive industry
(1) The monopoly held by foreign advanced enterprises has been broken, and domestic enterprises are gradually entering the competition in high-end application areas.
Overall, the concentration level within China’s adhesive industry is relatively low. There are numerous small and medium-sized enterprises, which are widely distributed across the country. These enterprises primarily produce general-purpose adhesives that require lower technical standards, resulting in relatively low profit margins. However, in the field of structural adhesives, the industry concentration is comparatively higher. In particular, a small number of domestic enterprises, represented by manufacturers, mainly produce structural adhesive products with relatively high technological content and independent intellectual property rights; these enterprises also enjoy relatively high profit margins. Meanwhile, international chemical giants, leveraging their strong R&D capabilities and brand advantages, reduce production costs by establishing joint ventures or production bases in China, thereby gaining a distinct competitive edge in terms of market share and technological innovation. 　　There are relatively few domestic enterprises in the adhesive industry that possess a certain production scale and technical level. Although these companies still cannot fully compete with international rivals in terms of overall R&D and production capabilities, they have made significant progress in certain niche segments and products. They are gradually replacing some imported products and competing with international giants in the high-end product market. After years of technological accumulation, some domestic enterprises represented by the issuer have mastered advanced domestic and international technologies in certain niche sectors, thereby securing a significant market share in their respective product markets. While enhancing the technical level of their products and building their own brands, these enterprises have also maintained a relatively rapid rate of growth in scale, gradually becoming stronger and larger in the fragmented domestic adhesives market. 　　(2) Industry leaders often adopt a strategy of focusing on specific market segments, thereby gaining a strong competitive advantage within those segments. Manufacturers of high-performance adhesives typically concentrate on one or several application areas. By targeting high-end customers in these areas, they pool their research, development, design, and manufacturing capabilities to provide the best possible services to such clients. This leads to the establishment of close cooperative relationships between them, eventually evolving into strategic partnerships based on mutual collaboration. By capturing high-end customers, one can gain a foothold in the corresponding niche market and eventually become a leader in that market. 　　2. Competitive landscape of the structural adhesive industry
Structural adhesives are high-end products within the adhesive category. They are primarily used in important emerging industries such as new energy, energy conservation and environmental protection, transportation, electronics and electrical appliances, and aerospace. The production of these adhesives demands a high level of R&D capability, advanced product technology, and strict control over the manufacturing process from enterprises. Currently, many domestic industries rely on imported products or those produced by joint ventures to meet their needs for structural adhesives; examples include epoxy resin structural adhesives and epoxy matrix resins used in wind turbine blades. In application areas such as new energy, transportation, energy conservation and environmental protection, and electronics and electrical appliances, structural adhesive products were long dominated by international giants like Momentive Specialty Chemicals (formerly Hexion of the USA) and Henkel of Germany. Since the beginning of this century, leading domestic adhesive manufacturers such as Shanghai Kangda, Huitian Adhesive, and Beijing Tianshan have intensified their research and development of structural adhesives in these fields. After years of technological accumulation, they have gradually obtained independent intellectual property rights for products including epoxy resin structural adhesives, acrylate adhesives, anaerobic adhesives, silicone adhesives, and polyurethane adhesives. These products have now replaced imported alternatives in their respective market segments. 　　Currently, there are over 30 enterprises in China’s structural adhesive industry that possess independent research and development capabilities and a certain production scale, have their own brands, and focus on structural adhesive products as their main business. Most of these enterprises focus on production technologies and product applications; however, there is a certain degree of competition among them in some product application markets. The product portfolios of multinational corporations and joint ventures are more comprehensive than those of domestic enterprises, with their products primarily consisting of structural adhesives that cater to markets requiring higher technological sophistication. Currently, the competitive landscape of China’s structural adhesive market is as follows: Multinational companies offer a comprehensive product portfolio and possess leading technologies, thus occupying the majority of the market share. Domestic enterprises, although relatively small in scale, focus on niche markets and are experiencing rapid growth; they are striving to catch up with their foreign competitors.