Chinese silk maker Taihu Snow Silk (Chinese: 太湖雪) will be listed on Beijing Stock Exchange on December 30 and delisted from the National Equities Exchange and Quotations (known as the New Third Board) on the same day.
Chinese silk maker Taihu Snow Silk (Chinese: 太湖雪) will be listed on Beijing Stock Exchange on December 30 and delisted from the National Equities Exchange and Quotations (known as the New Third Board) on the same day. It will be issued at CNY 15 per share, with a P/E ratio of 17.36x. The public offering will issue 8 million shares, to raise a total fund of CNY 120 million for the company's marketing channel building and branding projects, R&D and testing center construction, and information technology upgrading.
The Suzhou-based company specializes in silk development, design, manufacturing, and sales. Its four major product lines include silk quilts, bedding sets, silk accessories, and silk apparel. Taihu Snow Silk achieved a net profit of CNY 21.71 million (USD 3.115 million) and an operating income of CNY 219 million in the first three quarters of 2022. Its revenue in 2020 and 2022 reached CNY 311 million and CNY 373 million respectively.
Taihu Snow Silk sells on both online and offline channels, domestic and overseas markets, with an aim to meet various demands for silk products. The company's offline channels include directly-managed stores, mall counters, and distributors, and online channels for marketing and sales include various e-commerce platforms such as Tmall, JD, Vipshop, and Amazon. The company owns a number of silk processing technologies, and as of June 30, 2022, it has obtained 71 patents, including 3 inventions and 68 utility models. The company participated in the drafting of 5 national standards and 3 industry standards.
The company's gross profit margin has been around 40% over the past three years, and its gross profit margin was 41.13% in 2021. In 2021, the gross margins of listed companies Luolai Lifestyle Tech (Chinese: 罗莱生活), Starz Home (Chinese: 水星家纺), and Shenzhen Fuanna Bedding and Furnishing (Chinese: 富安娜) were 44.99%, 37.95%, and 52.14% respectively.
According to the China Chamber of Commerce for Import and Export of Textiles, in 2021, the total import and export of silk products in China reached CNY 12.267 billion, an increase of 32.03% year-on-year. Among the segments of the silk fabric industry, silk duvets are one of the most important products. According to relevant data, in 2021, 13.4 million silk duvets were produced in China, exceeding the pre-epidemic level. Calculated with the average unit price of silk duvets presented in the 2020 Suhang Silk Industry Research Report, the market size of silk duvets in China was CNY 15.596 billion, CNY 12.244 billion, and CNY 17.756 billion in 2019, 2020, and 2021, respectively.