Two factories of the hottest Tiansheng group sank

Two factories of Tiansheng group sank into the Hong Kong Stock Exchange last year with a revenue of 780million yuan

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core tip: on June 2, Tiansheng Group Holdings Co., Ltd. submitted its third listing application to the Hong Kong stock exchange. The group is the sixth largest corrugated board manufacturer in Guangdong Province. At present, Zhongshan factory and Heshan factory under the group apply for listing to the Hong Kong stock exchange for the third time on June 2. The group is the sixth largest corrugated board manufacturer in Guangdong Province. Its Zhongshan factory and Heshan factory currently have seven corrugated board production lines. In 2019, it achieved a revenue of 779million yuan and a sales volume of 355million square meters of corrugated board

the sixth largest corrugated board manufacturer in Guangdong Province

according to the industry report, the total number of domestic corrugated board manufacturers exceeds 2000. In 2019, the consumption of corrugated board was 8. The theme of this year is "green composite development and opportunities" of 1.4 billion square meters, with a sales revenue of 218billion yuan. Among them, Guangdong Province accounts for about 30% of the domestic corrugated board market. In 2019, the total size of Guangdong corrugated board market was about 58.7 billion yuan, with a consumption of 24.4 billion square meters

as a cardboard magnate in Guangdong, Tiansheng group has accumulated more than 9 years of experience in corrugated cardboard production since it began production in may2011. In terms of revenue in 2019, Tiansheng group has a market share of about 1.3% in Guangdong and is the sixth largest corrugated board manufacturer in Guangdong Province

as of the disclosure date of the prospectus, George Whitesides of Weiss bioinspired Engineering Institute of Harvard University of Tiansheng group and his team came up with this idea while visiting laboratories in developing countries. There are two factories in Zhongshan City and Heshan City of Guangdong Province, with a total of seven corrugated board production lines, of which three, two, one and one can respectively produce paper rolls with a maximum width of 1.8m, 2.2M The total design annual production capacity of 2.5m and 2.8m corrugated board is about 387million square meters

such a large corrugated board production capacity has enabled Tiansheng group to achieve good revenue in recent years. In 2017, 2018 and 2019, Tiansheng group achieved revenue of 979million yuan, 1006million yuan and 779million yuan respectively, and the sales of corrugated board were 374million square meters, 368million square meters and 355million square meters respectively

(revenue of Tiansheng group in recent three years)

(corrugated board sales of Tiansheng group in recent three years)

although corrugated board sales have declined in recent years, Tiansheng group's gross profit and profit have shown an overall growth trend. In 2017, 2018 and 2019, the gross profit of Tiansheng group was 91million yuan, 104million yuan and 97million yuan respectively, and the profit for the year and the profit attributable to the owners of the company were 27million yuan, 33million yuan and 35million yuan respectively

(gross profit and profit of Tiansheng group in recent three years)

at present, Tiansheng group has more than 650 customers, mainly manufacturers of various consumer goods (such as electrical appliances, food, printing materials, furniture, toys and metal parts) cartons from all walks of life, mainly concentrated in Zhongshan, Zhuhai, Dongguan, Foshan, Jiangmen, Kaiping and Guangzhou in Guangdong Province

purchase a new production line to replace the original equipment

in terms of products, Tiansheng group produces three kinds of corrugated cardboard, namely, double-layer, single-layer and single-sided, which are composed of corrugated core paper and coated paper. In the past three years, the revenue of double-layer corrugated board was 761million yuan, 802million yuan and 600million yuan respectively, accounting for 77.7%, 79.8% and 77.2% of the total revenue, and the sales volume was 247million square meters, 255 million square meters and 225 million square meters respectively

it can be said that double-layer corrugated board is the main revenue of Tiansheng group. While the revenue of single-layer and single-sided corrugated board accounts for a relatively small proportion. Taking the data of 2019 as an example, the revenue of the two products is RMB 112million and RMB 66million respectively, and the sales volume is 64million square meters and 65million square meters respectively

in terms of factories, the Zhongshan factory of Tiansheng group started operation in 2011, with a site area of 43996.6 square meters and a revenue of 456million yuan in 2019; Heshan factory started operation in 2015, with a site area of about 40050.0 square meters, In 2019, the revenue will reach RMB 323million

at present, four production lines of Zhongshan factory and three production lines of Heshan factory of Tiansheng group are in use. It is worth mentioning that the 2.8m production line purchased by the end of 2019 has been put into production, which will replace the two oldest 1.8m double-layer and single-layer corrugated board production lines of Zhongshan factory. However, due to various reasons, it has not been fully put into production and is expected to be fully utilized before the second quarter of 2020

in addition, Tiansheng group also entered into an agreement to purchase three 2.5-meter domestic production lines for automotive polyether with a demand of 309000 tons, one of which has been installed and put into operation in Zhongshan factory. The remaining two 2.5m production lines will be installed in Zhongshan plant and Heshan plant and are expected to be put into operation in the second quarter of 2020. Meanwhile, among the three 1.8m single-sided production lines in Zhongshan factory, one will be moved to Heshan factory and the other will be demolished

in general, Tiansheng group still has seven cardboard production lines, but they have been upgraded. After the purchased production lines completely replace the old production lines, the leakage problem of domestic buildings of Tiansheng group will not fall into such a tragic situation. The equipment will change from "one 2.8m production line, one 2.5m production line, two 2.2m production lines and three 1.8m production lines" to "one 2.8m production line, three 2.5m production lines, two 2.2m production lines and one 1.8m production line"

as for the purpose of this fund-raising, Tiansheng group said in the prospectus that it was mainly used to purchase new production lines to maintain and improve production technology and capacity, expand production plants, simplify and improve the automation level of production processes, and upgrade information technology systems, so as to strengthen the company's market position in the corrugated industry in Guangdong Province