Xilin Branch sales channel relies on two agents accounted for more than 40% and competition

The reporter consulted the department's prospectus found that its customer concentration is high, and its product sales more than 40% rely on the United States Afton and Kendors agents, these will be to the Department's sales capacity challenges.　　Among them, the United States Afton as a competitor of the Xilin branch. Data show that in 2008, 2009 and 2010, the first five major customers operating income accounted for the company's total operating income of 93.04%, 86.09% and 90.49% respectively, customer concentration is higher.　　Xilin Branch currently customers mainly state-owned refining enterprises and related distributors. In the domestic market, in the past three years, the department of Kendors sales accounted for 26.87%, 25.94% and 16.78% respectively, while overseas market sales through the United States Afton Chemical Company sales achieved.　　From 2008 to 2010, the Department of Afton and Kendors sales accounted for 65.43%, 46.18% and 48.26% of operating income respectively.　　It is noteworthy that Afton is not only MMT the world's largest manufacturers and suppliers, or the direct competition of the Xilin branch, Kendors is the United States Afton Chemical Dayton Company MMT Products in the domestic agents. Xilin Tan Chen: "During the reporting period, the company's Kendors sales accounted for 26.87%, 25.94% and 16.78%, respectively, the company's sales revenue growth contribution, the company in the domestic market for large customers rely on risk." If the distributor's operating adverse changes or to the company's procurement of products significantly reduced, will likely have a certain impact on the company's sales and performance. "Their products are mainly through Afton and Kendoslay agents, they are private enterprises, Sinopec, PetroChina and CNOOC system is difficult to enter."　　One industry insider said.　　June 2010, Xilin MMT through Sinopec Certification, was allowed to enter China's largest gasoline manufacturer Sinopec market, beginning in July, with the Sinopec Jiujiang Branch, Jinling branch, Tahe branch has accumulated sales revenue of 42.14 million yuan. In fact, there are many board of directors and senior executives from Sinopec, such as the director Zhang Wenpei successively as the party secretary of Sinopec Jiujiang Petrochemical Plant, Shanghai Petroleum Branch manager, General manager Huang has served as the chief of production dispatching department of Sinopec Jiujiang Branch Company , deputy general manager Guo Zuliang has served as Sinopec Jiujiang Chemical Fertilizer Engineering Command Deputy command, research and development director Dong, Sinopec Jiujiang branch of the chief engineer. Among them, Huang, Guo Zuliang and Dong all indirectly hold 0.1% of the shares of Xilin branch.