Financial Associated Press (Shanghai, editor Hu Jiarong) news, as one of the well-known domestic nursing brands shuke's parent company Vimax Co., Ltd., on February 8 officially submitted a table to the Hong Kong Stock Exchange, the ABC International and BNP Paribas as its IPO co-sponsors.
Vichy is a company that is very unfamiliar to many investors, and the company's Shuke brand and related products are very familiar to everyone. According to the prospectus, the company was founded in 2014, as an innovative high-tech enterprise integrating research and development, production and sales, it has an oral care brand "Shuke", a children's oral care brand "Shuke Baby", of which the Shuke brand product line has covered toothpaste, mouthwash, mouth spray, electric toothbrush, toothbrush and other categories.
According to Frost & Sullivan, Vichy ranks fourth in the Chinese oral care market with a market share of 5.3% in terms of retail sales of all oral care products in 2020. Vichy is also the largest provider of children's oral care products in China, with a market share of 20.4%. In addition, in terms of retail sales in 2020, Vimax ranks fourth in China's electric oral care market with a market share of 4.3%.
Focus on online and offline sales channels
Vimax's products are all over the country, entering Walmart, Carrefour, Aeon, RT-Mart, Yonghui, Auchan, Lotus and other large chain stores, to achieve ALL-round coverage of KA stores, large department stores, cosmetics chain channels, county and township stores, e-commerce, etc., and e-commerce channels include mainstream e-commerce platforms such as Tmall, JD.com, and Pinduoduo; as well as emerging online channels such as Douyin and Xiaohongshu).
As of September 30, 2021, Vimax's omni-channel sales and distribution network includes an online channel consisting of 32 self-operated online stores and 48 online distributors on major e-commerce platforms, emerging social platforms, community group buying platforms, and 48 online distributors. At the same time, in terms of offline, the company has 602 offline distributors covering 22 provinces and four municipalities directly under the central government in China.
The company achieved steady revenue growth
In the context of the significant impact of the COVID-19 pandemic on the global economy, Vimax has achieved steady growth in operating performance through its diversified product strategy and simultaneous improvement of online channels. According to the prospectus, Vimax's adjusted net profit increased by 214.9% year-on-year from RMB48.193 million in 2019 to RMB152 million in 2020, and nearly RMB129 million in the first nine months of 2021, an increase of 56.7% year-on-year, with strong profitability growth.
At the same time, it is mentioned in the prospectus that Vimax's gross profit margin showed a year-on-year increase trend in 2019, 2020 and the first nine months of 2021, with 53.8%, 58.1% and 62.8% respectively.
In addition, the funds raised by Vimax will be used to develop online and offline brand building, including advertising on social video sites and short videos, advertising in crowded areas to increase brand and product awareness, product research and development activities and strengthening research and development capabilities, strengthening offline sales networks and market penetration, including product display and roadshows in core business districts, equity investment in high-quality niche oral care brands, and strengthening business digitalization and infrastructure renewal for working capital and general corporate purposes.