Rating Surveillance Report
I. Reason for Surveillance
In accordance with relevant regulations, China Lianhe Credit Rating Co., Ltd. (hereinafter referred to as "Lianhe Credit") conducted this surveillance rating based on its surveillance rating arrangements for Ke Shun Waterproof Technology Co., Ltd. (hereinafter referred to as "the Company" or "Ke Shun Shares") and its related bonds.
II. Company Profile
The Company was established on October 10, 1996, and listed on the GEM of the Shenzhen Stock Exchange on January 25, 2018. After multiple name changes and capital increases, as of the end of March 2026, the Company's share capital was 1.110 billion shares. Individuals Chen Weizhong and Ruan Yibao hold 24.62% and 6.83% of the shares, respectively, and are the actual controllers of the Company.
The Company's main business includes the production and sales of building waterproof materials, waterproof engineering construction, and providing shock absorption and waterproofing technical solutions for major, key, and critical projects such as railways, highways, construction, water conservancy, power, and subways. It is applicable to the general industrial enterprise credit rating methodology according to Lianhe Credit's industry classification.
As of the end of 2025, the Company's consolidated total assets were RMB 12.400 billion, and owners' equity was RMB 4.052 billion (including minority equity of RMB 0.083 billion); in 2025, the Company achieved total operating revenue of RMB 6.044 billion and a net loss of RMB 0.592 billion.
As of the end of March 2026, the Company's consolidated total assets were RMB 12.345 billion, and owners' equity was RMB 4.121 billion (including minority equity of RMB 0.080 billion); from January to March 2026, the Company achieved total operating revenue of RMB 1.456 billion and a net profit of RMB 0.076 billion.
The Company's registered address is No. 38, Hongqi Middle Road Industrial Zone, Ronggui, Shunde District, Foshan City, Guangdong Province; the legal representative is Chen Weizhong.
III. Bond Overview and Use of Proceeds
The Company's outstanding bonds rated by Lianhe Credit are "Ke Shun Convertible Bonds." After deducting issuance expenses, the net proceeds from the bond issuance were RMB 2.181 billion, of which RMB 1.527 billion was planned for investment projects and RMB 0.654 billion for supplementing working capital. Details of the investment projects are provided in the "Future Development" section below. As of the end of 2025, the cumulative investment in the bond proceeds was RMB 0.847 billion (including RMB 6.54 billion for supplementing working capital), and the unused proceeds were RMB 1.361 billion. Of the unused proceeds, RMB 1.275 billion was temporarily used to supplement working capital, and the remaining RMB 0.086 billion was deposited in a special account for bond proceeds. Due to the time required for bond proceeds investment projects, some proceeds will be temporarily idle in the short term. To improve fund utilization efficiency, the Company plans to use part of the temporarily idle bond proceeds for cash management. The initial conversion price of "Ke Shun Convertible Bonds" was RMB 10.26 per share. After multiple adjustments, the conversion price was adjusted to RMB 6.61 per share as of May 26, 2026. During the surveillance period, "Ke Shun Convertible Bonds" paid interest on time.
| Bond Name | Issued Amount (RMB billion) | Outstanding Balance (RMB billion) | Interest Accrual Date | Term |
|---|---|---|---|---|
| Ke Shun Convertible Bonds | 21.98 | 21.9782 | 2023/08/04 | 6 years |
Source: Lianhe Credit compiled from public information.