Source: Beast Finance Author: Beast Finance
Beast Finance learned that [Yingzi], a non-woven fabric manufacturer from Shanghai, has recently submitted a prospectus to the US Securities and Exchange Commission (SEC) to apply for IPO listing on Nasdaq, the stock code is (ETZ), and Yingzi plans to Through this Nasdaq IPO listing, 2.5 million shares will be issued at the proposed mid price of $4.50 per share, and $11 million will be raised.
Currently, no existing shareholders have expressed interest in subscribing for Inzys shares at the IPO price. If Inzys is successfully listed on Nasdaq, the company's market capitalization at the time of IPO will be approximately $83.6 million, excluding underwriter excess The impact of allotment rights.
Business
Yingzi, headquartered in the ancient town of Fengjing, Jinshan, Shanghai, was established in 2016 as a non-woven fabric manufacturer dedicated to the production and sales of non-woven fabrics and related products, currently mainly disposable non-surgical masks and eye masks. The company also Seeking to start developing hygiene products such as adult diapers and feminine hygiene pads. Its sales area covers the United States, Germany, Spain, Italy, Portugal, the Netherlands, the United Arab Emirates, Japan, South Korea and other countries.
Yingzi currently has 18 invention patents and 23 utility model patents.
Mainly adopt the French ANDRITZ carding machine which is most suitable for air-through non-woven fabrics, plus the mature and reliable Taiwan spinning oven in the industry, to provide customers with high-end air-through non-woven fabrics and solutions. At present, the annual production capacity of Yingzi is 7,200 tons. Due to the hot air Non-woven fabrics are relatively dependent on raw materials. At present, Yingzi purchases Toyobo (Toyobo), Daiwabo (Daiwabo), Chisso, Far Eastern, Unitika and other well-known imported ES composite fibers to ensure the quality and stability of raw materials.
Inze's management is led by founder, chairman and CEO Mr. Junjie Hu, who has been with the company since its inception in 2016 and previously worked as a senior product manager for 3M China and RISI (a company focused on the pulp and paper industry) consulting firm) analyst.
As of June 30, 2022, Inzys has received US$4.7 million in equity investment from investors.
Industry Overview
According to a market research report by Grand View Research, the size of the global disposable face mask market in 2021 is US$38.9 billion and is expected to drop to US$2.1 billion by 2030.
This represents a negative CAGR forecast (27.6%) for the industry from 2022 to 2030.
The main reason for the expected decline in demand is that the overall use demand has declined after the epidemic has generated huge short-term demand from 2020 to 2021.
The figure below shows the historical and future trends of disposable mask products in the US market:
Inze's main competitors in this industry include:
(1) 3M
(2) Honeywell (HON)
(3) Kimberly-Clark (KMB)
(4) Uvex
(5) KOWA
(6) SAS Safety Corp
(7) The Gerson Company
(8) DACH
(9) Te Yin
financial situation
According to the prospectus, Yingzi’s financial situation is as follows:
Lower revenue, lower gross profit and gross margin, losses from continuing operations and lower cash used in operations.
(1) Total income: The total income of Yingzi in 2020, 2021 and as of June 30, 2022 are respectively: US$46.9 million, US$17.5 million and US$5.41 million.
(2) Gross profit (loss): Yingzi's gross profit in 2020, 2021, and as of June 30, 2022 are: US$24.58 million, US$4.25 million, and US$700,000, respectively.
(3) Gross profit margin: The gross profit margins of Yingzi in 2020, 2021 and as of June 30, 2022 are: 52.42%, 24.30%, and 13.09%, respectively.
(4) Operating profit (loss): Yingzi's operating profit in 2020, 2021 and as of June 30, 2022 are: US$10.5 million, US$2.81 million, and US$780,000, respectively.
(5) Comprehensive income (loss): The comprehensive income of Yingzi in 2020, 2021 and as of June 30, 2022 are respectively: US$10.99 million, US$2.59 million and US$1 million.
(6) Operating cash flow: The operating cash flow of Yingzi in 2020, 2021 and as of June 30, 2022 are respectively: 11.52 million US dollars, 3.31 million US dollars, and 1.46 million US dollars.
As of June 30, 2022, Inz had $3.3 million in cash and $13.7 million in total liabilities.
Inzyme has negative free cash flow ($3.8 million) for the 12 months ended June 30, 2022.
Agency
Network 1 Securities, the sole underwriter of Indz's Nasdaq IPO, has led IPOs in the past 12 months that have generated negative average returns (52.3%) since IPO. That was the lowest performance of any major underwriter for the period.