Parent company of Lesening Gains $86.6M in H1 of 2022
- Chaileedo Press
- Nov 15, 2022
- 2 min read
Recently, the parent company of Lesening Chongqing Dencare Oral Care Products Company Limited (hereinafter referred to as Dencare) updated its prospectus data. It had received feedback from the China Securities Regulatory Commission on its prospectus.
The prospectus shows that the business income of Dencare mainly comes from the sale of toothpaste, toothbrushes, mouthwash and other oral cleaning care products, currently has a well-known brand of oral care Dencare, Lesening, as well as high-end professional oral care brand Medpair, the children's oral care brand Beilele, and the high-end baby oral care brand Mengya, and the main products cover toothpaste, toothbrush, mouthwash and other oral cleaning care products.
Previously, the Shenzhen Stock Exchange had issued feedback on the application documents for the initial public offering of Dencare, with a total of 31 feedback on two categories of regulatory issues and disclosure issues. This time, Dencare also supplemented the prospectus in response to the feedback.
In addition, Dencare also updated its latest financial data, with operating revenues of 944 million yuan (about $133.9 million), 1.03 billion yuan (about $ 146.1 million), 1.143 billion yuan (about $162.1 million) and 611 million yuan (about $86.6 million) for FY2019, FY2020, FY2021 and January-June 2022, respectively, still maintaining growth.
In terms of specific businesses, Dencare adult toothpaste business is still its main source of revenue, with revenue of 486 million yuan (about $68.9 million) in the first half of this year, accounting for 79.76% of total revenue. The total revenue of adult toothbrush business is 64.7535 million yuan (about $9.2 million), accounting for 10.62% of total revenue. Overall, the market share is steadily increasing.
Children's basic oral care products, which accounted for a relatively small share of total revenue in the first half of the year, amounted to 48.792 million yuan (about $6.9 million), accounting for 8% of total revenue. However, the unit sales price of children's toothpaste decreased by 4.52% in the first half of the year compared with FY2021, mainly due to the increase in the proportion of sales of the Company's children's toothpaste sets and promotional pack products.
In terms of specific business channels, the distribution model is still the main source of revenue for Dencare. Although with the continuous expansion of e-commerce channels, the proportion of total revenue accounted for by this model has been decreasing since 2019. In the first half of this year, the total revenue of the distribution model was 474 million yuan (about $67.2 million), accounting for 77.7% of the total revenue. The proportion of the e-commerce model in the total revenue increased from 13.17% in 2021 to 17.32% in the first half of this year recorded 106 million yuan (about $15 million).
According to the prospectus, the funds raised will be used for an intelligent manufacturing upgrade construction project, an omnichannel marketing network upgrade and brand promotion construction project, an oral health research center construction project and a digital management platform construction project.
Comments