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In the commodities industry, information companies are becoming increasingly well-known. Acting as a \"lubricant\" for the industry, the information industry may not seem very prominent, but it is connected to every aspect; its role as a \"connector\" is extremely important. In the 1980s, a slogan was displayed in Shenzhen: “Time is money.” In the information industry, there is also a slogan: “Information is money.” Pingtouge has recently conducted in-depth research with some industry veterans, and today I’d like to talk to you about this \"niche\" industry. I. Circumstances give rise to heroes; the development history of global commodity information companies. Today, there are roughly over 100 such companies worldwide, with more than 10,000 employees working for them. They produce over 100,000 industry reports each week, which hold great value in guiding the industry. ThinkWorks will first present a table showing the well-known international news companies currently available. Looking at the history of information companies, their development has always been driven by prevailing circumstances such as politics, economy, and war. It is the times that create heroes, and heroes adapt to those times. Global information companies were established primarily in the 1970s, 1990s, and 2000s, corresponding respectively to the severe price fluctuations caused by the Arab oil embargo in 1973 ； The rise of the petrochemical industry in the Far East during the 1990s ； In the 2000s, China’s petrochemical industry gradually began to dominate the sector. In the former case, industry players develop (new) demands; unprecedented fluctuations in oil prices force them to obtain information promptly in order to take advantage of opportunities and avoid risks ； And the latter two are the surge in user numbers, which has given rise to greater information demands. In contrast, during the 1990s, Japan’s RIM and **’s Seapac were star companies in the industry; their oil price indices were even once regarded as the authoritative indicators in the Far East. However, they gradually declined in prominence and are now little known. Rockchip believes that, in addition to issues related to the company’s own operational strategies, the strong competition from rivals (such as S&P’s introduction of Japanese-language reports) is a factor; an even more important reason is the declining significance of the key markets in this region, as these markets have gradually shifted to the Chinese mainland. II. With the spring breeze filling the city and flowers blooming everywhere, the development history of China’s major information companies dates back to 1988 to the present. China’s information industry has grown at a rapid pace, but its growth has slowed down gradually since 2016. According to Rough Estimate, the revenue of China’s bulk chemicals information industry in 2020 was around 500 million yuan, and this figure does not include the revenue generated by Shanghai Steel Exchange (which focuses on metal information and trading). According to the prospectus made public by Zhuochuang Information, Zhuochuang’s annual revenue exceeds 200 million yuan, making it the company with the largest revenue in the information services sector at present. If revenue from trading, finance, investment, and non-chemical information services is taken into account, Shanghai Steel Union is currently the largest company in the information industry. Over the past 20-plus years, many information companies have been established in China, operating similar businesses; they compete with one another while also learning from each other. Based on research and available public information, Pingtouge has compiled a timeline of the development of the localized salary information industry in China; the details are shown in the figure below. Starting in 1988, due to the important role of information in the standardized management of the petrochemical market and production regulation, the Sinopec Business Information Network was launched; it was China’s first information website dedicated to petrochemical products. When the Sinopec Business Information Network was first created, it was intended for use within Sinopec and CNPC, with some private enterprises also able to access the market information available on the site. Later, Sinopec Business Information Network was renamed Longzhong Information, and the types of services it offered also gradually increased. Starting out by providing information only on plastic products, Longzhong has gradually expanded its services to include information on chemical and energy products, gaining significant influence and being regarded as the Huangpu Military Academy of the information industry. At this time, the Chinese chemical industry witnessed its first wave of production commencement. Since the reform and opening up in 1978, and after accumulating technical expertise and human resources over a period of time, the chemical industry began to develop rapidly starting from 1990. As the only commodity information agency in China at that time, Longzhong Information played a significant role in promoting the informatization of the market, making a substantial contribution to China’s commodity information industry. Founded in 1992, HuiCong.com broke the monopoly held by Longzhong and **expanded the market beyond Longzhong’s service area, enabling customers in East and South China to receive more services. Thereafter, HuiCong focused on improving its services related to transactions and went **public. Although HuiCong entered the information industry early on, it shut down its information services around the year 2000, as it was too difficult to make a profit in this business area at that time. Yimao Information was established in 1999, marking the beginning of an era of \"tripartite competition\" in China’s commodity information sector. Unlike HuiCong, Yimao initially focused on trading services, but suffered significant losses during the internet bubble. It later shifted to providing information services, and this approach proved successful; the company gradually expanded its operations to locations such as Beijing, Yantai, Guangzhou, ** and Singapore, with over 1,000 employees at its peak. Later, after the news section was acquired by Anxunsu, it gradually withdrew from this industry. From 2000 to 2010, commodity information companies emerged everywhere across the country, with the highest concentration in Shanghai, Guangzhou, and Zibo/Linyi in Shandong Province. It is worth mentioning Zibo in Shandong – as the saying goes, \"If you want to understand China’s petrochemical industry, look at Shandong; if you want to understand Shandong’s petrochemical industry, look at Zibo.\" Pingtouge has learned that, originating from Longzhong Information in Zibo, many information industry entrepreneurs have emerged over the years. According to incomplete statistics, there are over 5 companies that have some connection with Longzhong; most of these are located in cities such as Zibo and Linyi. Most of them have closed down by now, but those that have survived now have a larger scale of operation than Longzhong. If you are a salesperson in a chemical manufacturing company, in the morning, in addition to attending regular sales meetings and handling normal sales tasks, you may also receive inquiry calls from at least 3 information companies, as well as several online inquiries from such companies. Of course, this is mutually beneficial, as sales staff can also obtain other relevant information in the industry through information companies. It can be said that information companies have become hubs for chemical information, and it is precisely for this reason that their value is fully realized. For analysts, there are several ways to obtain high-quality market information; one of them is the information released uniformly by the manufacturing companies themselves ； Secondly, by maintaining good relationships with the persons in charge of pricing at manufacturing companies, relevant information can be obtained. The quality of such information is high, especially that from leading companies, and it is useful for guiding market decisions; however, it may not be available for public release. Analysts in information companies need to maintain close communication with manufacturing enterprises, and differing management philosophies have also given rise to fierce competition in expanding relationships with these clients. ThinkSmart believes that competition among information companies is largely a struggle for talent and customer relationships, and it tests a company’s understanding of the future development of the information industry. III. Why does the owner say there is a lack of funds? A brief overview of the information services industry related to bulk chemicals in China: this industry helps to increase the level of informatization in the bulk chemicals market, thereby enabling China to gain more influence over the pricing of such commodities (Zhuochuang’s vision is great!) ) it has a significant effect in all these aspects. But it’s not easy for information companies to make a profit. The practice of charging for information has only been around in China for a few years; in those initial years, it was the pioneers in this field who operated in the education sector, and at that time, making money wasn’t even a possibility ； Second, even if the market starts to accept paid information, the overall scale of this sector is small, and it cannot be compared to the spot and futures markets. Fortunately, the gross margin of information products is quite high these days; in many cases, it can exceed 60%. Here, Pingtouge will give a brief overview (truly a brief one) of some of the information-based products that currently exist; most of these products reflect the efforts of pioneers in exploring ways to turn information into revenue. This includes, but is not limited to: price trends. This is the main product through which profits are generated, with the majority of revenues coming from it (according to Zhuochuang’s prospectus, around 80%). Industry data products, similar to data supermarkets. Industry conferences, either focused on products as the core theme or serving as comprehensive events. Benchmark prices: There are many derivatives in this area (you can refer to SteelHome, Shanghai Nonferrous Metals Network, and Anxunsu). Standardized reports, annual reports, weekly reports, daily reports ； Some companies have also developed standardized reports in the form of tool manuals for individual products. The consulting business falls into the relatively high-end category, focusing on custom-made reports that are not standardized. With a high average order value and high gross profit margin, it enables both revenue generation and the establishment of a reputation for professionalism for the company. Paid visits. Training. For advertising, if one relies solely on information stream ads, the results are not particularly good. Other value-added services and products, such as industry chain maps, etc.