Chinese disposable hygiene products manufacturers gradually move towards globalization
According to a disclosure by the Hong Kong Stock Exchange on March 16, Soft International Group Co., Ltd., a Chinese disposable hygiene products manufacturer, has passed the Hong Kong Stock Exchange's hearing, with SUNNY FORTUNE as the sole sponsor.
Soft International Group Ltd is mainly engaged in the development, production, and sales of personal disposable hygiene products in China, focusing on baby and child care products for emerging markets in Eurasia. According to a report by Frost & Sullivan, based on export value in 2023, Soft International is the second-largest exporter of disposable hygiene products for baby and child care to Russia in China. In terms of the export value of disposable hygiene products for baby and child care in China in 2023, the company accounts for approximately 3.7% of the market share.
In recent years, benefiting from the explosive growth of Russian e-commerce and the vigorous development of its own brands, Soft International has expanded to mainly produce and supply baby and child care products for several top Russian children's goods retailers, helping retailers establish or enhance their own brand images in their respective regions. The Russia-Ukraine war has also shifted the demand of Russian customers from international brands to their own brands. Therefore, during the record period, Soft International's revenue from the Russian market increased significantly.
The revenues of Soft International in the fiscal years 2021, 2022, 2023, the first nine months of 2023, and the first nine months of 2024 were approximately CNY 263 million, CNY 408 million, CNY 655 million, CNY 493 million, and CNY 520 million respectively. During the same periods, the net profits were approximately CNY 10 million, CNY 41.9 million, CNY 57.7 million, CNY 53.7 million, and CNY 40.5 million respectively.
Soft International has an automated production base. The company's production base is located in Jinjiang City, Fujian Province, with a total annual production capacity of over 1 billion pieces. As of September 30, 2024, there are 17 production lines producing the company's core products in the Jinjiang production base, and each production line mainly includes a fully servo machine.
To support the sales of different business departments and the needs of different customers, including the company's D2C e-commerce sales (requiring fast and accurate delivery of small, variable orders), Soft International has built a seven-story fully automated warehouse next to the production base, with a total construction area of approximately 8,800 square meters and a total storage capacity of approximately over 50 million pieces.