On February 8, Sichuan Xinshihao maternal and infant products ***Lantian Group Holdings Limited (hereinafter referred to as "Xinshihao") submitted a prospectus to be listed on the main board of the Hong Kong Stock Exchange, with Redco Corporate Finance as its sole sponsor.
According to the prospectus, Xinshihao is a manufacturer of disposable medical-grade infant diaper products, focusing on the design, production, research and development, sales and marketing of infant diaper products.
Tianyancha information shows that Xinshihao, located in Meishan City, Sichuan Province, is an enterprise mainly engaged in the paper and paper products industry, established in October 2019, less than 5 years ago. At present, the registered capital of the company is about 10.1 million yuan, the legal representative is Wu Jinchang, and the shareholders include Sichuan Mengqu Duck Technology Consulting***Alpha (Hong Kong) Investment***.
In the prospectus, Xinshihao cited the Frost & Sullivan report that in terms of retail sales in 2022, the company ranks among the top 20 domestic brand baby diaper products in China, with a market share of about 3 in domestic companies0%。During the Track Record Period, the Company also produced small quantities of diapers to customers.
Xinshihao said that it designs and produces its own baby diaper products at its Meishan production base, of which the Meishan production base began operation in 2019. At the beginning of 2023, Xinshihao will further expand the scale of Meishan production base. As at the Latest Practicable Date, the total gross floor area of the Meishan production base was approximately 38,3125 square meters.
According to the prospectus, the live broadcast building of Xinshihao's Meishan production base was completed and opened in July 2023 as a dedicated space for its sales and marketing team to conduct live broadcasts to display and promote products. As at the Latest Practicable Date, we opened more than 70 online self-operated retail stores on seven third-party e-commerce platforms, including Pinduoduo, Kuaishou, Douyin and Tmall.
It is also reported that Xinshihao started its OEM business in June 2021, manufacturing and selling its baby diaper products under the proprietary brand of a Beijing-based Chinese e-commerce conglomerate (which is currently listed on the NASDAQ and the Stock Exchange) on an OEM basis, and reselling them to customers through its own sales channels.
The directors of Xinshihao believe that this is a great affirmation of the company's products and production capacity. At present, Xinshihao is gradually developing its OEM business, adding seven new OEM customers in nine months in 2023. Since 2022, the company has also started to distribute and export its products to corporate customers in overseas countries such as Kazakhstan and Vietnam.
In 2021, 2022 and the first nine months of 2023 (the first three quarters), Xinshihao's revenue was 34 billion yuan, 53.8 billion and 48.8 billion yuan, gross profit was 968570,000 yuan, 16.1 billion and 13.7 billion yuan, net profit was 203610,000 yuan, 465350,000 yuan and 439930,000 yuan.
In terms of product types, Xinshihao's revenue is mainly contributed by infant pull-up pants and infant diapers. During the reporting period, the revenue from these two types of products was 33.2 billion yuan, 53.3 billion yuan and 47.9 billion yuan, accounting for total revenue. 0% and 982%。
According to the prospectus, online self-operated retail stores have become an important income for Xinshihao**. During the reporting period, the revenue from online self-operated retail stores was 14.7 billion yuan, 16.9 billion and 17.3 billion yuan, accounting for the proportion of total revenue. 5% and 356%。
In 2021, 2022 and the first three quarters of 2023, the average monthly transaction volume of Xinshihao's online self-operated retail stores exceeded 280,000, 320,000 and 360,000 respectively, and the average transaction value of each purchase by customers during the corresponding years was approximately RMB438 yuan, 44$1 and $53$5.
Bedo Finance found that the concentration of good customers in the new world is high. During the reporting period, the company's revenue from the top five customers accounted for the percentage of total revenue. 8% and 391%。Among them, the revenue contribution of the largest customers is as follows: 4% and 182%。
In contrast, the concentration of good ** quotient in the new century is even greater. During the reporting period, the company's total purchases from the top five ** merchants accounted for about its total purchases. 9% and 738%。Among them, the proportion of procurement of the largest ** merchants is respectively. 2% and 283%。
As of the end of September 2023, the company's cash and cash equivalents were 22910,000 yuan, compared to 841 at the end of 202220,000 yuan. In contrast, the company's cash and cash equivalents decreased in the first three quarters of 2023, a relative decrease of 61190,000 yuan.
In particular, Xinshihao also carried out surprise dividends before listing. According to the prospectus, immediately prior to the transfer of the equity of Xinshihao from Shanghai Congbo to Shanghai Congbo shareholders in September 2022, Sixinshihao declared a dividend of approximately RMB6,529 to Shanghai Congbo$60,000, which was paid in full in January 2023.
Prior to this listing, Wang Yong held 6864%, Jiang Xing holds 2376%, Li Weixing holds 594%, Yao Wei holds 066%, Teng Chee Lay holds 100%。
Among them, Wang Yong is the executive director and chairman of the board of directors (i.e. the chairman) of Xinshihao, and Xiao Wenyan is the executive director and president.