WeiMeiZi Industrial(Guangdong) Company Ltd.(hereinafter referred to as “WeiMeiZi”), the parent company of Saky, formally submitted a prospectus to the Hong Kong Stock Exchange for listing on the Main Board, with NCB International and BNP Paribas as joint sponsors.
WeiMeiZi Industrial(Guangdong) Company Ltd.(hereinafter referred to as “WeiMeiZi”), the parent company of Saky, formally submitted a prospectus to the Hong Kong Stock Exchange for listing on the Main Board, with NCB International and BNP Paribas as joint sponsors, according to the disclosure of the Hong Kong Stock Exchange on February 8.
The prospectus shows that WeiMeiZi is a leading oral care products provider in China, mainly engaged in the development and sale of a diversified oral care product portfolio covering four major oral care product categories (i.e. adult basic oral care, children’s basic oral care, electric oral care and professional oral care). It owns some oral care brands – Saky and SakyKids, a children’s oral care brand.
According to Frost & Sullivan, WeiMeiZi ranks fourth in China’s oral care market with a 5.3% market share in terms of retail sales of all oral care products in 2020. WeiMeiZi is also the largest provider of children’s oral care products in China with a 20.4% market share. In addition, WeiMeiZi ranked fourth in China’s electric oral care market with a 4.3% market share in terms of retail sales in 2020.
The prospectus shows that WeiMeiZi’s adjusted net profit increased 214.9% year-on-year from RMB 48.193 million (approximately $7.759 million) in 2019 to RMB 152 million (approximately $24 million) in 2020 and nearly RMB 129 million (approximately $20 million) in the first nine months of 2021, an increase of 56.7% year-on-year with strong profitability growth. Also mentioned in the prospectus, WeiMeiZi’s gross margin shows a year-on-year trend of 53.8%, 58.1% and 62.8% in 2019, 2020 and the first nine months of 2021, respectively.
It is reported that the proceeds from the listing on the HKSE will be used to strengthen the brand building, establish digital marketing and marketing content systems, strengthen offline sales and distribution networks and market penetration, make equity investments in premium niche oral care brands, enhance product development activities and strengthen R&D capabilities, and strengthen business digitization and optimize IT infrastructure, respectively.