Ping An Biomedical Co (PASW) Registration Filing summary

Company overview and business model

• Operates as a holding company in the Cayman Islands, conducting apparel supply chain management (SCM) through a PRC subsidiary, New Brand, headquartered in Shanghai.

• Provides end-to-end SCM services for yarns, textiles, and finished garments, including market trend analysis, design, sourcing, production, quality control, and logistics.

• Vertically integrated, asset-light model relying on third-party suppliers and contract manufacturers; customers include brand owners, textile manufacturers, sourcing agents, and online retailers in China.

• Focuses on rapid turnaround, customization, and sustainability in product sourcing and environmental marketing.

Financial performance and metrics

• Revenue for the year ended September 30, 2023: RMB 82.6 million (US$11.3 million), down 27.9% from the prior year, mainly due to lower yarn sales.

• Gross profit for FY2023: RMB 4.2 million (US$581,164), with a gross margin of 5.1%, down from 12.3% in FY2022.

• Net loss for FY2023: RMB 993,937 (US$136,230); net income for the six months ended March 31, 2024: RMB 237,704 (US$32,920).

• As of March 31, 2024: working capital deficit of RMB 4.9 million (US$679,336); cash and cash equivalents of RMB 969,621 (US$134,291).

• High customer concentration: top five customers accounted for 91%, 81%, and 88% of revenue for the six months ended March 31, 2024, and years ended September 30, 2023 and 2022, respectively.

Use of proceeds and capital allocation

• Net proceeds from the IPO (estimated $8.86 million) will be allocated: 20% for raw material procurement, 20% for customer acquisition and market expansion, 20% for efficiency and SCM service enhancement, 10% for sustainable materials, and 30% for general working capital.

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