Grow th tra ject ory as a supp lier to major out door brand s
Head quar tered in Yang zhou , China , Jin qu an Tourism Products Co ., Ltd . (Yang zhou Jin qu an Tourism Products Co ., Ltd .) is known as an OEM manufact urer of t ents and sleep ing bag s for the global out door brand " The North Face " and " Fa ir la ben " from Germany . On November 2, 202 3, the company announced that it is prepar ing for an initial public offering (IPO).
The character istic of Jin qu an lies in the manufact uring technology of high quality out door gear , which has ear ned a high reput ation in the industry , especially in the production of weather - res ist ant t ents . Since its in ception , the company has exp anded its deal ings with global brand s , main ly in Europe and the United States , and has ste ad ily increased its annual production capacity in recent years .
Use of IPO F unds and Produc tion C apac ity Ex pansion Plan
According to the public pros pect us , Jin qu an plans to spend about 50% of the funds raised by the IPO on exp anding production facilities and technolog ical innovation . What is particularly note worthy is the fact that despite the current relativ ely low utiliz ation situation , the company is planning to invest aggres si vely in capital .
According to the analysis of industry stak ehol ders , this decision is seen as having the following strateg ic inten tions :
- Advan ce investment antici pat ed to increase order volume from existing customers
- Ens uring production capacity for acquis ition of new brand s
- Long - term cost reduc tion through the introduc tion of autom ation equipment
- Mainten ance of production Whatsapps for environment ally friendly products
Jin qu an ' s management comment ed that " the current low utiliz ation rate is the result of a tempor ary adjust ment in supply and demand , and we are conf ident that the medium and long - term growth trend will be mainta ined . "
Compet itive Environment in the Out door Sup pli es Market and Future Pros pe cts
Due to the continued global out door boom , the camp ing gear market , such as t ents and sleep ing bag s , has recorded an average annual growth of 5 - 7% since 2020. In the middle and high - p ric ed market , in which Jin qu an is involved as a major supp lier , the demand for quality and susta ina bility is increasing year by year , and the company ' s technolog ical compet itive strength ser ves as a compet itive advantage .
But there are challenges too . As production shi fts across the industry to low - labor regions such as Vietnam and Bangladesh continue , Jin qu an , with its production base in China , will need to remain cost - com pet itive . In addition , the potential for brand ed companies , which are key customers , to purs ue vertical integration in their own companies is a potential risk factor .
Under these circumstances , it is believed that the background of Jin qu an ' s efforts to raise funds through the IPO is the need to invest in improv ing production efficiency and developing high - val ue - added products . The focus for the next few years will be on how to effectiv ely uti lize the funds raised to balance impr oved utiliz ation and increased prof ita bility .
Financial and Business High lights of Jin qu an Co ., Ltd . That Invest ors Should Pay Atten tion to
In the run - up to the IPO , we would like to sum mari ze the business and financial situation of Jin qu an , especially the points that investors should pay attention to :
- Customer concentration . Sales concentration to the top 3 brand s exce eds 70%
- Produc tion efficiency . Current utiliz ation rate is around 60% and below the industry average
- Research and development: App ro ximately 3% of sales are invest ed in R & D , and hold s more than 10 technical pat ents
- Exchange rate risk: Ex port ratio exce eds 90% and is suscep tible to exchange rate flu ctu ations
- Grow th Strateg y: 50% of IPO funds to expand production , 30% to develop new products
Due to the industry character istics of the out door supp lies market , which is character ized by large seas onal flu ctu ations , quarter ly performance flu ctu ations also tend to be severe . The pace of utiliz ation improv ement and progress in acqu iring new customers will be key indicat ors in reading Jin qu an ' s future stock price .