The Zhitong Finance App learned that according to the Hong Kong Stock Exchange disclosure on May 10, Shu Bao International Group Co., Ltd. (hereinafter: Shu Bao International) submitted the Hong Kong Stock Exchange main board, and SUNNY FORTUNE is its sole sponsor.

According to the prospectus, Shubao International is mainly engaged in the development, production and sale of personal disposable hygiene products in China, focusing on infant care products in emerging markets in Eurasia. Since its establishment in 2010, the company has mainly marketed and sold branded baby care products in China. The flagship infant care brand “Baby Shubao” was rated as “2016 Fujian Famous Brand Product” by the Fujian Provincial People's Government. The company was also rated as “China's Top Ten Baby Diapers Industry Companies in 2018” by the Household Paper Professional Committee of the China Paper Association. In addition, the company was shortlisted in the 2021 revised list of the main drafting units for the currently applicable national standard for disposable infant diapers.

In the past few years, the younger generation of Chinese consumers favored digital platforms and switched to affordable high-end brands, and the company focused more on the “direct to consumer” (D2C) sales model, using many third-party pure digital platforms in China to directly market and sell branded products to end consumers. The company expanded the brand's product range to current core product categories, namely infant care, women's care, and adult incontinence.

While expanding the D2C brand product business in China, the company's foreign contract manufacturing business continued to grow during the track record period, and exported core baby care products to foreign brands, bringing their respective brands to emerging markets in Eurasia, such as Russia, Southeast Asia, and Kazakhstan. In recent years, benefiting from the explosive growth of e-commerce in Russia, its own brands have flourished. As confirmed by Frost & Sullivan, the company has expanded to mainly produce and supply baby care products and solutions to several top Russian children's goods retailers to help retailers establish or enhance their own brand image in the region. According to the Frost & Sullivan report, the company is the second-largest exporter of disposable baby care hygiene products exported from China to Russia in terms of 2022 export values.

In China, consumer disposable income is increasing, and consumers are paying more attention to quality and brand experience rather than just price. Second, with the rise of the national trend (national wave), the local D2C brand of disposable hygiene products for infant care in China is affordable and personalized, and popular among consumers. China's women's care products and adult incontinence care products are also showing an upward trend, mainly due to improved living standards, increased consumer awareness, and a continuously aging population.

According to Frost & Sullivan's report, the 2022 market for disposable hygiene products for infant care, disposable hygiene products for female care and adult incontinence was approximately RMB 50.5 billion, RMB 63.1 billion and RMB 12.1 billion respectively. It is expected to increase to approximately RMB 58.1 billion, RMB 72.1 billion and RMB 16.8 billion respectively in 2027, with compound annual growth rates of about 2.8%, 2.7% and 6.8%, respectively.

As competition in the Chinese market intensifies, Chinese disposable hygiene products manufacturers are turning to overseas markets to compete for Southeast Asian customers. These countries have a growing population, far above the global average, and are the third-largest market for disposable hygiene products for infant care in the world. According to Frost & Sullivan's report, the Asian disposable hygiene products market is about US$88 billion in 2022, and is expected to grow to about US$106.8 billion in 2027, with a compound annual growth rate of about 3.9% from 2022 to 2027.

On the financial side, from fiscal year 2021 to fiscal year 2023, Shu Bao International's revenue was approximately RMB 263 million, RMB 408 million, and RMB 655 million respectively; profits during the same period were approximately RMB 10.06 million, RMB 41.86 million, and RMB 58.9 million respectively.