How long will the competition between China Jushi and Sinoma Science & Technology drag on?
On the evening of May 13, 2026, a public announcement from China Jushi once again brought the long-standing issue that had been hanging over investors' heads for a decade to the forefront. The announcement stated that its controlling shareholder, China National Building Materials Co., Ltd., and its actual controller, China National Building Materials Group, would again postpone fulfilling their commitment to resolve the competition with Sinoma Science & Technology.
This "two-way competition," which began in 2016, was originally scheduled to be resolved completely within three years starting in December 2017. However, due to the involvement of multiple listed companies in Shanghai, Shenzhen, and Hong Kong, and the extremely high complexity of asset integration, this commitment, after three postponements in 2020, 2022, and 2024, has now been extended for the fourth time: the final resolution deadline will be no later than five years from the date of shareholder approval.
The Historical Question Left by the "Two Materials Restructuring"
This protracted competition stems from the "Two Materials Restructuring" led by the State-owned Assets Supervision and Administration Commission of the State Council in 2016. The merger of the former China National Building Materials Group (CNBM) and the former China National Materials Group (CNBM) transformed the two giants of the fiberglass industry, formerly belonging to two separate state-owned enterprises, into one entity overnight.
On one side is China Jushi, the absolute leader in the global fiberglass industry, whose global market share of fiberglass roving and products has long been the highest. In the high-end electronic-grade fiberglass and electronic fabric sector, with the new production line at its Huaian zero-carbon base commencing production in March 2026, its global market share in electronic fabric is expected to reach approximately 28%, its technological barriers and scale advantages remaining unshakeable.
On the other side is CNBM Science & Technology, which has deeply cultivated the fiberglass market through its wholly-owned subsidiary, Taishan Fiberglass. Taishan Fiberglass, a well-known domestic fiberglass company, consistently ranks second in market share. Although its overall size is smaller than Jushi's, it possesses strong competitiveness in niche areas such as specialty fiberglass electronic fabric.
Both giants belong to CNBM, and their businesses highly overlap, directly constituting "intra-industry competition" that crosses regulatory red lines.
Why is the integration process so difficult?
As early as 2017, the controlling shareholder promised to steadily advance the integration through a combination of methods, including asset restructuring, equity swaps, and business adjustments. In 2020, the two parties attempted a major asset restructuring, but it ultimately failed due to the parties' inability to reach an agreement on core terms.
Financially, both companies have recently shown strong recovery momentum after experiencing industry cycle fluctuations. Their 2025 annual reports and 2026 Q1 reports show that both China Jushi and Sinoma Science & Technology achieved double-digit growth in revenue and net profit. However, the improved performance has not accelerated the integration process; instead, it has made the struggle over "who will be merged into whom" and "how to balance the interests of shareholders in the two and three locations" more delicate.
Despite repeated delays in fulfilling the commitment, which have caused dissatisfaction and doubt among some small and medium-sized investors, the controlling shareholder has clearly stated that its determination to resolve the issue of competition within the same industry remains unchanged. The current consensus is that the integration plan must be maturely formulated under the premise of benefiting the development of the listed company and protecting the interests of public shareholders.
A marathon has an end, and breaking through the impasse signifies rebirth.
For the capital market, the competition between China Jushi and Sinoma Science & Technology is like a shoe that has been hanging over their necks for a long time. It's both a Damocles' sword hanging over the two companies and a source of immense potential for reshaping the future landscape of the fiberglass industry.
Amidst the deepening reforms of state-owned enterprises and the increasing industry concentration, this decade-long struggle will finally come to an end. Perhaps, when the two giants truly merge, that will be the moment when China's fiberglass industry truly establishes absolute dominance on the global stage.
After all, the best defense is a good offense, and the strongest consolidation often follows the longest wait.
