Aster Secrets Revealed About Going Public

Aster Secrets Revealed About Going Public

Aster’s wholly-owned subsidiary, Jiangxi YiBo Electronic Technology Co., applied to go public at the Hong Kong Stock Exchange on April 29, 2020. The company expects to be listed as Planet Image International Limited (Planet Image) sometime in 2020.

A manufacturer and seller of compatible printer cartridges, Planet Image International Limited, previously named Aster Group International, was established in the Cayman Islands in August 2019.

According to Chinese financial website ZhiTongCaiJing, the research firm ZhuoShiZiXun reported Planet Image has become the second-largest compatible cartridge manufacturer in China with an approximately 13.2% market share in terms of international market revenue. By December 31, 2019, the company ranked first in the U.S. and second in Europe in terms of market share.

Planet Image International Limited is centered on developing and manufacturing compatible cartridges for use in different popular laser printers from different manufacturers under its non-label or third-party brand or private label brands. Its traditional sales network spreads all over the world, mainly focusing on America and Germany. It also has an online sales channel to promote its self-branded products.

“It is said that Planet Image has established local sales operations in international markets with an aim to manage and penetrate local customers as well as provide support to customers who buy products through the original design manufacturer (ODM),” the report stated.

The report also mentioned distributors who purchase ODM products from Planet Image usually sell them on to medium to large enterprises, government organizations or educational institutions. Considering compatible cartridges are one of the most important office supply consumables, potential customers maintain sufficient stock so as to meet the potential demand once America and Europe reopen following the pandemic.

According to the report, Planet Image plans to build a multi-story, comprehensive manufacturing center to further develop business, increase market penetration ratio, as well as expand the company’s presence. An enhanced development, upgrade and integrate communication system will be implemented to improve the efficiency of operations, as well as strengthen sales and logistics and to expand the market.

By December 31, 2019, Planet Image had 39 production lines designed to produce 15.4 million cartridges every year. It is also said that additional or replacement lines can be implemented easily without big investments in time or money.

To expand business in Europe, Planet Image has set up sales operations in Italy, Germany, France and the UK. It also established warehouses as well as precise logistics systems in strategic locations in the US (California and Pennsylvania), the Netherlands, UK, France and Italy, so as to ensure on-time delivery.

The company also developed its own cloud warehouse management system to manage purchasing orders, stock and accounting.

The company revenue increased from US$75.4 million for the year ended December 31, 2017, to US$106.3 million for the year ended December 31, 2018, and increased to $121.5 million for the year ended December 31, 19, a compound annual growth rate of 26.9%.

The company’s net profit increased from US$4.8 million for the year ended December 31, 2017, to US$7.6 million for the year ended December 31, 2018, and further increased to 9.6 million US dollars for the year ended December 31, 2019, with a compound annual growth rate of 41.4%.

For the years ended December 31, 2017, 2018 and 2019, offline channel revenue accounted for approximately 87.2%, 73.5% and 74.8% of total revenue, of which ODM products and The revenue of non-label products in 2019 accounted for 40.1% and 34.1% of the total revenue respectively; the revenue from online sales platforms accounted for about 12.8%, 26.5% and 25.2% of the total revenue respectively, of which private label products accounted for a relatively high revenue of 22.4%.

During the track record period, the company recorded cumulative losses of US$13.4 million and US$6.3 million on December 31, 2017, and 2018, respectively. Prior to the Track Record Period, important litigation with competitors resulted in significant disruption to the Group’s business expansion and operations, as well as financial conditions, and the legal litigation was settled in 2013. Later, business operations began to turn into profit shortly before the track record period.

With the overall growth of the industry and the company’s own competitive advantages, the company recorded a profit of US$4.8 million for the years ended December 31, 2017, 2018 and 2019, The accumulated losses of USD 7.6 million and USD 9.6 million as of December 31, 2019, have been reversed.

Related:

• Canon Reviews its Options Over its Recent Court Loss with Aster and Others in the US
• Aster Ends Court Battle with Giannetta
• Aster New Action in EU

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