We are a leading technology-driven platform in China’s chemical industry, connecting participants along the chemical value chain through integrated solutions. Our e-commerce, financial, warehousing, logistics and SaaS solutions solve pain points in the traditional chemical transactions. Powered by a comprehensive knowledge engine and artificial intelligence (AI) capabilities, we were the largest chemical e-commerce platform in China in 2018 and 2017 in terms of GMV, according to a report by Frost and Sullivan. Our e-commerce solutions are mainly offered through our online platform, consisting of molbase.com, molbase.cn, Moku Data Weixin, Chemical Community APP and other ancillary platforms.
The following chart summarizes the key participants in our ecosystem and how the interactions among them form a virtuous cycle:
Our knowledge engine. Our business is built upon our proprietary chemicals knowledge engine, which serves as the fundamental infrastructure for our comprehensive services and solutions. We have accumulated a significant amount of chemicals and transaction data to build MOLBASE Encyclopedia, the most comprehensive and innovative knowledge engine for commercially available chemicals in China, according to a report by Frost & Sullivan. As the entry point of our Online Platform, users may search for chemicals based on molecular structures. We subsequently provide search results covering the synthetic routes of the searched chemicals, along with pricing and supplier information.
Our technology services. Leveraging our MOLBASE Encyclopedia knowledge engine and deep understanding on how to transform the traditional chemical value chain, we provide our suppliers and customers with information services empowered by our AI engine, which primarily consist of intelligent matching systems and MOLBASE Intelligent Chemical Industry Maps, as well as a comprehensive SaaS suite.
- AI engine: our proprietary intelligent matching systems recommend relevant and useful information on chemicals to our customers, and effectively match orders among suppliers and customers by identifying chemicals on the synthetic routes and structurally similar chemicals. Built upon the significant amounts of transaction data accumulated on our platform, our MOLBASE Intelligent Chemical Industry Maps provide visualizations of the industry participants for particular chemicals and their relationships, allowing suppliers and customers to locate each other efficiently. Our intelligent matching systems and MOLBASE Intelligent Chemical Industry Maps are popular among users on our Online Platform, enabling us to facilitate a massive number of chemicals transactions and effectively cross- sell our other services and solutions.
- SaaS suite: we have developed a full-fledged SaaS suite enabling suppliers and customers to optimize and digitalize their business operations. Our SaaS suite includes online store maintenance, orders and client relationship management, online payment solutions, instant messages, and promotional and marketing services. The comprehensive range of services provided by our SaaS suite offer a positive transaction experience for our customers and suppliers, enhance our brand name within the chemical industry, and empower the growth of our business. As of September 30, 2019, there are more than 98,000 users of our SaaS suite, and we expect that more customers and suppliers will adopt our SaaS suite in the foreseeable future.
Our e-commerce solutions. We offer our chemical e-commerce solutions through direct sales and marketplace models. Our direct sales model involves acquiring chemicals from suppliers at customers’ requests in most cases and selling them directly to customers, generating revenues from the sale of chemicals. We leverage our accumulated transaction data to optimize inventory management and adopt efficient pricing strategies via our AI engine. In our marketplace model, we connect suppliers and customers and currently charge commissions on only a small portion of transactions in order to attract and encourage users to transact on our platform. We continuously gain insights into the dynamic chemical market by gathering transactional information through this model.
Our financial solutions. We cooperate with banks and other non-bank financial institutions to introduce low-cost financing opportunities for chemical industry participants. We may provide guarantees for selected users requesting financial solutions, based on our review of their historical performance, credit records, and transaction history on our platform.
Our warehousing and logistics solutions. We have developed warehousing and logistics solutions to facilitate smooth and timely order fulfillment on our Online Platform. Our platform enables suppliers and customers to quickly find warehousing and logistics service providers and easily track the location and status of their goods.