Our Group is principally engaged in the manufacturing and selling of sewing threads.
We currently manufacture polyester sewing threads, which are mainly used for garments.
Our major product for sale is 100% spun polyester sewing threads.
We also offer other types of sewing threads, namely textured polyester series, elastic filament sewing threads and weft yarn.
Our products are manufactured in our Guangzhou Production Facilities in Liwan, Guangzhou and sold in the PRC, Hong Kong and overseas.
In accordance with the CIC Report, our Group ranked sixth in the sewing threads industry in Guangdong province, occupying 1.4% of the market share in Guangdong province in terms of the production value in 2016.
Since commencement of our business operation, our Group has been offering polyester sewing threads to customers in the PRC, Hong Kong and overseas countries, including UAE, Mauritius, Australia, Germany and the United Kingdom.
Our customers are mainly garment manufacturers and wholesalers.
Our Competitive Strengths
We believe that our Group possesses the following strengths which contribute to our success and distinguish us from our competitors:
Our Group has maintained long-term business relationships with our customers and suppliers
Our Group places much emphasis on establishing stable and long-term relationships with our customers as we understand that this is essential to our business development.
The customer base of our Group covers large garment manufacturers in Guangdong province and sewing thread trading companies worldwide.
Customers with large scale of operation place relatively high standards on their suppliers’ capabilities in procurement, quality control and logistics management and opt for working with suppliers whom they are familiar with.
We seek to offer our customers products of high quality.
In addition, we ensure that our products are delivered to our customers in a timely manner.
We also endeavour to give prompt response to our customers’ requests and feedback.
Our Group is capable of satisfying customers’ needs for high quality and differentiated products and thus we have maintained a long-term and strong relationship with our customers.
Our Directors believe that what we offer to our customers are to their satisfaction and this not only helps enhance our reputation but also enables us to build a solid customer base by earning recurring business from our customers.
Further, according to the CIC Report, garment customers increasingly procure sewing thread materials from branded manufacturers.
Brand images have therefore been critical for market participants.
Our Group has built up a strong brand image since its establishment in 1978 and our ‘‘Xinhua’’ (‘‘新華’’) sewing thread products have become well known in the sewing thread industry.
Such a solid customer base would be conducive to the implementation of our expansion plan as well as the sustainability of our long-term growth.
At present, our Group had maintained business relationships with our top five customers for a period ranging from one to 18 years.
To gain the satisfaction of our customers, we need to ensure that we have the ability to consistently offer products of good quality.
Our products for sale are mainly sewing threads, of which the raw material is fibre.
We may also purchase yarn directly from our yarn suppliers.
Now, we had maintained business relationships with our five largest suppliers for a period ranging from one to 14 years.
We believe that given such good and stable business relationships with our raw material suppliers and our yarn suppliers, we are able to secure a timely and steady supply of our raw materials of premium quality.
We adopt a stringent quality control mechanism to ensure our product quality
Maintaining effective quality control is the key to producing sewing threads of good quality.
Our quality control department, consisting of five of our staff members, is responsible for conducting quality control on our products.
We adopt a stringent quality control mechanism under which different tests are performed on our raw materials and products at various stages of our operation process, including the procurement of raw materials, the twisting and waxing of threads and the packaging of sewing threads.
Over the course of our business, our emphasis on manufacturing our products, together with our ability to maintain effective quality control, has enhanced our customers’ confidence in us.
Our Group has been accredited with the certification of ‘‘ISO 9001:2008 Quality Management System’’ since 2000 in recognition of our effective management and ‘‘OEKO-TEX Standard 100’’ since 2002 in recognition of the good quality of the raw materials, intermediate and end products at all stages of our production.
Our strategic location allows us to be better positioned for the business development of our Group
According to the CIC Report, Guangdong province ranked first among different provinces and regions in the PRC in terms of total garment production volume in 2015.
Our Guangzhou Production Facilities and PRC office are strategically based in Guangzhou city, Guangdong province, which is close to the centre of the textile industry in the PRC.
We believe that such close proximity to the hub of the textile industry in the PRC allows us to have easy access to industry news and market information, efficient communication with our existing customers as well as greater exposure to our potential customers.
Given our favourable geographical location, we believe that it would increase our business opportunities and help facilitate our future growth.
We have an experienced management team with extensive industry experience
The management team of our Group has remained quite stable since its establishment, including, without limitation to, its executive management, operation and technical personnel, who have extensive knowledge and experience in the textile industry.
The members of the management team has have brought years of experience and a history of success to our Group.
They are experienced in procurement, production, technology as well as marketing.
Our management team is led by Mr. Wong, our chairman and executive Director, possesses more than ten years of experience in the sewing threads industry (including trading our sewing threads to customers) and extensive knowledge of relevant management skills.
With his experience in the sewing threads industry, Mr. Wong has developed strong relationships with key market participants, which enables our Group to anticipate market trends when formulating our positioning and development strategies.
Since he joined our Group, Mr. Wong has played a leading role in the overall business growth and has accumulated ample knowledge in the sewing threads industry.
Mr. Wong is primarily responsible for the overall strategic and business direction of our Group.
Mr. Lee Wing Hong, our executive Director and Chief Financial Officer, has more than 15 years of experience in the field of and extensive knowledge of relevant financial and accounting skills.
Prior to joining our Group, Mr. Lee Wing Hong worked as the auditor-in-charge for various manufacturing companies in the PRC and Hong Kong.
From his previous employment at various manufacturing companies, Mr. Lee accumulated his experience and financial management skills, which are conducive to his directorship of our Group.
Mr. Lee Wing Hong is primarily responsible for the financial management of our Group.
In addition to the management of our Group under Mr. Wong and Mr. Lee Wing Hong, we have dedicated and experienced staff as members of our senior management.
Mr. She Siu Ming, who is responsible for overseeing the operations and management of our Guangzhou Production Facilities, has over 15 years of experience in the textile industry.
Mr. Lui Hak Kong, our production manager, is responsible for monitoring the operation process of our production facilities.
He is experienced in the production aspect of the textile industry.
Mr. Wong Pak Yip, our sales manager, is in charge of the sales and marketing aspect of our Group.
He is proficient in the sales and marketing skills required for the thread business.
Each of Mr. She Siu Ming, Mr. Lui Hak Kong and Mr. Wong Pak Yip have joined our Group for more than 15 years.
Under the leadership of such a strong and firm management team, our Group has been leading in the sewing thread production in Guangdong province.
We believe that the relevant knowledge and experience of our executive Directors and our senior management have contributed to our Group’s growth and development and will also be instrumental to our future success.
Our equipment and technology ensures production capability
In accordance with the CIC Report, the requirement for large initial capital investment on machinery and equipment sets high barriers for new entrants as the quality of products relies largely on the machinery and equipment or technology that are applied in the production.
Our Group is well equipped with automatic sewing thread machines and tools to ensure production capability.
With such equipment and technology, our Group is able to timely and safely deliver sewing thread products.
We currently have five production lines, comprising various machine groups, in operation for the production of our 100% spun polyester sewing threads and other threads, including textured polyester series, elastic filament sewing threads and weft yarn.