Chinese Medical Dressings Company Fuerjia Goes Public Today with 30Bn Yuan Market Value
- Chaileedo Press
- Aug 1, 2023
- 2 min read
The funds that Fuerjia is raising will be used for production base construction, research and development and quality testing center construction, brand marketing and promotion of three projects.
August 1 morning, Harbin Fuerjia Technology Co., Ltd. (stock abbreviation: N Fuerjia) went public in the Shenzhen Stock Exchange, stock code "301371". The issue price is 55.68 yuan / share and opened at 80 yuan / share. As of 9:30 p.m., Fuerjia’s share price reached 80 yuan ($11.2) per share, up 43.68% from the issue price, with a total market capitalization of 32.01 billion yuan ($4.5 billion). So far, the first stock of medical dressing on A-share was created.
Public information shows that Fuerjia is a professional skincare products engaged in the research and development, production and sales of the company. Its products covered medical device class dressings and functional skin care products, focusing on dressings and stickers, film, and the introduction of lotion, emulsion, spray, freeze-dried powder and other forms of products.
In terms of profitability, according to the data of the Prospectus (Draft for the Meeting) published by Fuerjia, from 2020 to 2022, its revenue was 1.585 billion yuan ($221.1 million), 1.650 billion yuan ($230.2 million) and 1.769 billion yuan ($246.8 million). The net profit was 648 million yuan ($90.4 million), 806 million yuan ($112.4 million) and 847 million yuan ($118.2 million) respectively, and after deducting the non-profit net profit was 477 million yuan ($66.5 million), 774 million yuan ($108 million) and 766 million yuan ($106.9 million).
From the perspective of product structure, at present, Fuerjia has 46 kinds of cosmetic products, far more than the number of medical device products (5 kinds). In the cosmetics category, facial mask is its core product.
It is worth noting that, according to the prospectus, sales of Fuerjia cosmetic functional skincare products accounted for 51.05% in 2022, more than 50% for the first time. During the reporting period, sales of Fuerjia cosmetic products were 705 million yuan ($98.4 million), 722 million yuan ($100.7 millioin) and 903 million yuan ($126 million), accounting for 44.46%, 43.75% and 51.05% respectively.
As for the sales model, the current Fuerjia online channel is divided into three modes: direct sales, distribution and consignment. It entered online platforms such as Tmall, Xiaohongshu, Douyin (Chinese version of TikTok), Kwai, Pinduoduo (Chinese version of Temu) and others. Its offline sales is based on the distribution model and mainly for the spa, chain retail pharmacies and other terminal channels. Although in recent years, it has been vigorously deploying e-commerce channels, but offline sales is still its main way.
It is reported, the funds that Fuerjia is raising will be used for production base construction, research and development and quality testing center construction, brand marketing and promotion of three projects. Among them, the production base construction project is proposed to add a new production line of professional skin care products.
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