On October 21, Capital State learned that Huanlong Holdings handed over the main board of the Hong Kong Stock Exchange, with CMB Capital acting as its sole sponsor. It is reported that the company failed three times on October 3, 2019, April 24, 2020, and April 15, 2021.
According to the prospectus, Huanlong Holdings is mainly engaged in the design, manufacture and sales of paper blankets under the VANOV and Gobear brands. According to the Frost & Sullivan Report, the company is one of the top five paper blanket manufacturers in the Chinese market, and the fourth and only paper blanket manufacturer with a headquarters in China, with a market share of about 5.8% in terms of 2020 revenue.
Financially, the Company's revenue for the three years ended December 31, 2020 and the six months ended 30 June 2021 was approximately RMB159 million, RMB167 million, RMB183 million and RMB76.515 million, respectively; Net profit was approximately CNY 37.206 million, CNY 35.077 million, CNY 41.013 million and CNY 14.286 million, respectively.
It is worth noting that the Company has not entered into a long-term supply contract with the supplier and if the Company is unable to obtain the supply, the production cost and schedule may be adversely affected.
During the Track Record Period, the Company's five major suppliers accounted for approximately 81.0%, 83.5%, 80.8% and 83.3% of the Company's total raw material purchases respectively, while purchases from the Company's largest suppliers accounted for approximately 43.6%, 50.7%, 50.0% and 48.9% of the Company's total raw material purchases for the same period, respectively.
This article originated from Capital State
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