A summary of the collection
The main business of the market is the manufacture and sale of wood-based plywood and wood bio-granules in China. During the period from 2013 to 2015, the revenue from plywood products accounted for more than 70% of the total revenue of the collection, while the plywood products were generally used for furniture production and interior repair and repair. The plywood products are mainly divided into the following three categories: furniture board, raw plywood board (also known as melamine plywood panel) and solid wood plywood board. In addition, the market also uses wood dregs (also known as three leftovers) to produce wood biomass, which is used as a fuel for cleaning other traditional fuels (such as coal).
In 2014, the collection of plywood brand "Boyi" awarded the top ten brand names in the China wooden plywood brand evaluation. According to the Ipsos report, in 2015, it ranked fourth in terms of market share accounting for the income of China's plywood market.
Industry summary
According to the Ipsos report, the output of China's plywood manufacturing industry increased from about 7140 million cubic meters in 2010 to about 166 million cubic meters in 2015, with an annual growth rate of 18.3 percent. It is expected that the output of China's plywood manufacturing industry will grow at a combined annual rate of nearly 9.3% between 2016 and 2019. In addition, the demand for plywood in China grew at an annual growth rate of 12.6% from 2010 to 2015. China's demand for plywood is expected to grow at a compound annual growth rate of about 10.6% from 2016 to 2019.
Cymbals
Collection or failure to collect the appropriate collection items in a timely manner. The average weekly number of collection items increased from 32 days in the year ended December 31, 2013 to 73 days in the year ended December 31, 2015, while any trade receipts were collected and confirmed within the collection period. If the customer of the collection fails to pay or any other payment items are confirmed to be uncollectible, it will adversely affect the operating conditions and operating expenses of the collection.
Valuation
According to the IPO document, as of June 30, 2016, based on the calculation of the 7.20 shares expected to be issued after the completion of the sale of the shares, the shares should account for 239 million yuan to 284 million yuan per person, equivalent to HK $0.38 to HK $0.46 per share. (at the exchange rate of HK $1.00 to RMB 0.8625 yuan).