On May 10, Shubao International Group Co., Ltd. (hereinafter referred to as “Baby Shubao”) submitted a prospectus on the Hong Kong Stock Exchange. SUNNY FORTUNE is the sole sponsor.
According to the prospectus, from 2021 to 2023, Baby Shubao achieved revenue of 263 million yuan, 408 million yuan, and 655 million yuan respectively; the annual profits due to company owners were 10.06 million yuan, 41.86 million yuan, and 58.9 million yuan, respectively.
Baby Shubao stated in the prospectus that the group is mainly engaged in the development, production and sale of personal disposable hygiene products in China, focusing on baby care products in emerging markets in Eurasia. Since its establishment in 2010, it has mainly marketed and sold branded baby care products in China. The flagship baby care brand is “Baby Shubao”.
However, as Baby Shubao expanded its D2C (direct-to-consumer) brand product business in China, its foreign contract manufacturing business also continued to grow, and exported its core baby care products to foreign brands, bringing the brand to emerging markets in Eurasia, such as Russia, Southeast Asia, and Kazakhstan.
According to a review by Rui Finance, during the reporting period, Baby Shubao's revenue from Russia accounted for more than China. Among them, revenue from Russia was 105 million yuan, 206 million yuan, and 377 million yuan respectively, accounting for 40%, 50.4%, and 57.7%, respectively; revenue from China accounted for 35.2%, 34.4%, and 31.4%, respectively.
According to Ying Shubao, disposable hygiene products are basic essential consumer goods, and demand changes relatively little. Regardless of the overall economic trend, demand remains stable. According to the Group's legal adviser, baby care products can be treated as medical supplies. Due to the humanitarian nature of the products, there are few export control restrictions on the products.
According to the Frost & Sullivan report, in terms of 2022 export values, Baby Shubao is the second-largest exporter of disposable hygiene products for infant care from China to Russia.
