Blue-Touch plans to launch no less than thirty new products in the next three years.
Recently, Fujian Blue-Touch Holdings Group Co., Ltd filed a prospectus with the SEC to be listed on NASDAQ.
According to the prospectus, Blue Touch is an enterprise focusing on the research, development, production, sales and service of infant care products. The products include household cleaning products such as clothes softener, washing powder, multifunctional cleaner, disinfectant, etc., as well as baby skin care products and bath products such as camellia oil moisturizing cream, camellia oil emulsion, camellia oil two in one shampoo and shower gel.
As of December 2021, the total revenue of Blue-Touch is 6.66 million US dollars, with a year-on-year growth of 114.91%. The net income was 775,522 US dollars, up 1468.74% year on year.
Before 2020, all revenues of Blue Touch will come from the sales of household cleaning products. In 2020, Blue Touch purchased a patent for camellia oil extraction and processing technology, and launched a series of camellia oil baby skin care products and toiletries based on the patent. As of December 31, 2021, its income from baby skin care products and toiletries accounted for 49.47% of the total income, while the proportion in 2020 was only 30.68%.
Blue-Touch relies primarily on third-party manufacturers to produce its products and on offline distributors to sell its products in China. Currently, it has 17 partner offline distributors covering various provinces including Fujian, Shandong, Jiangsu, Hunan and Zhejiang. In addition, Blue-Touch also has a brand flagship store on the Tmall platform, which sells seven products including detergents, wet wipes and shower gels.
The prospectus mentions that Blue-Touch plans to increase its brand awareness and corporate profitability in the short term (or within the next three years) by launching no less than thirty new products and expanding its offline distribution network. In the medium term (within three to five years), Blue-Touch plans to establish an online sales network. In the long term (more than five years) to expand its existing sales channels by establishing brand stores, franchises, etc., and to build its own sales channels.
In terms of research and development, Blue-Touch has been making improvements to existing product formulations, developing new camellia oil products, and innovating products based on other camellia tree parts such as camellia leaf and flower. Its internal innovation development team consists of five members and its R&D expenses in 2021 are 1,666,700 yuan ($231,505,000), or 4.42% of operating expenses.
If the IPO is successful, Blue-Touch said 20 percent of the net proceeds raised will be used for product innovation and development, 40 percent for business expansion and acquisition or investment in companies in the maternal and newborn skin care industry, and 40 percent for working capital, operating expenses and other general corporate purposes.