Business summary

Shenyou Holdings' main business is the production and sale of sewing lines. Currently, the group mainly produces cotton yarn for clothing. The group's main sales product is 100% cotton yarn. In addition, the group also supplies other types of sewing lines, namely the filament yarn series, high-elastic sewing lines and low-elastic fibers. The Group's sewing lines are produced at the Guangzhou production base in Liwan District of Guangzhou City and sold in China, Hong Kong and overseas. The group's production base has five production lines, and three production lines. We are responsible for producing 100% cotton yarn.

Competitive advantage

Adopt strict quality control mechanisms to ensure product quality and quantity

A favorable geographical location is conducive to the group's business development

Risk Factors

Fluctuations in raw material prices may adversely affect the group's profitability

Long-term supply contracts have not been signed with suppliers. If the group fails to obtain supply, it may have a significant impact on production costs and progress of operations

Yarn manufacturers and dyeing suppliers do not meet standards or are not as good as ideal, or may have an adverse effect on the Group's operations

Use of proceeds

About 50% of the production line for waxing yarn on upgraded industrial cotton yarn

Approximately 19% of the production line used to upgrade household cotton yarn for waxing and twine

About 10% is used on tubular sewing machines to buy cotton wire

About 9% is used for purchasing equipment to produce nylon wire

About 3% was used to establish a sales office in Zhejiang

Approximately 9% is used for general working capital