Futu News, June 17th: This Friday $WEILI HOLDINGS (02372.HK)$Announcement: The company plans to issue 0.2 billion shares from June 17th to June 22nd, with 20 million shares for public offering and 0.18 billion shares for international offering. The expected listing price per share is 0.63-0.67 HK dollars, in lots of 4000 shares, and is expected to be listed on June 30th.
The company is a cigarette packaging paper manufacturer in China with the research and development capabilities to supply customized products to customers. The company mainly supplies products to cigarette packaging manufacturers operating in various provinces of China, including Hubei Province and Henan Province. The company's products are used for manufacturing cigarette packaging for well-known tobacco brands in China.
According to the prospectus, at least 9 cigarette brands that were rated as 'double fifteenth tobacco brands' (the top 15 cigarette brands in terms of sales volume in China's mid-to-high-end cigarette market in 2020) use the company's products as cigarette packaging materials.
According to industry reports, the company was rated as the largest cigarette packaging paper manufacturer (in terms of sales volume) in Hubei province in 2020, with a market share of approximately 14.9%.
In terms of finance, the revenue of Weili Holdings for the fiscal years 2019 to 2021 were 0.313 billion, 0.318 billion, and 0.37 billion RMB respectively, with a compound growth rate of 8.72%. The net income for the same period were 34.297 million yuan, 42.171 million yuan, and 35.687 million RMB respectively, with a compound growth rate of 2.01%.
The industry net income of China's tobacco operation in 2022 showed a significant increase over the previous year, totaling 58.08 billion yuan. Among them, tobacco sales profit increased by 5.3%, and the control system of the industry are becoming more sophisticated.