Ping An Biomedical Co (PASW) Registration Filing summary

Company overview and business model

• Operates as a Cayman Islands holding company with all operations conducted through a PRC subsidiary, New Brand, focused on apparel supply chain management (SCM) services, including yarn, textiles, and finished garments.

• Offers vertically integrated, end-to-end SCM solutions: market trend analysis, product design, raw material sourcing, production, quality control, and logistics.

• Customers include brand owners, textile manufacturers, sourcing agents, and online retailers, primarily in China.

• Relies on third-party vendors and contract manufacturers for production, maintaining an asset-light model.

• No long-term contracts with customers or suppliers; business is order-based and subject to market fluctuations.

Financial performance and metrics

• Revenue for the year ended September 30, 2024: RMB 87.6 million (US$12.5 million), up 6.1% from the prior year, driven by increased yarn sales.

• Gross profit for 2024: RMB 5.4 million (US$0.77 million), with a gross margin of 6.2%, up from 5.1% in 2023.

• Net loss for 2024: RMB 1.28 million (US$0.29 million), a 29.2% increase from 2023, mainly due to higher administrative expenses.

• Working capital deficit as of September 30, 2024: RMB 10.3 million (US$1.46 million).

• Top five customers accounted for 86% of revenue in 2024; five largest suppliers made up 66.8% of cost of goods sold.

Use of proceeds and capital allocation

• Net proceeds from the IPO (estimated $13.3 million) will be allocated: 20% for raw material procurement, 20% for customer acquisition and market expansion, 20% for efficiency and SCM service enhancements, 10% for sustainable materials, and 30% for general working capital.

• No proceeds from the resale of shares by existing shareholders.