Ping An Biomedical Co (PASW) Registration Filing summary

Company overview and business model

• Operates as a Cayman Islands holding company with operations in China through its PRC subsidiary, New Brand, providing supply chain management (SCM) services in the apparel industry, including yarn, textiles, and finished garments.

• Offers end-to-end SCM solutions: market trend analysis, product design, raw material 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.

• No long-term contracts with customers or suppliers; top five customers accounted for 86% of revenue in 2024.

Financial performance and metrics

• Revenue for the year ended September 30, 2024: RMB 87.6 million (US$12.5 million), up 6.1% from 2023.

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

• Net loss: RMB 1.28 million (US$0.29 million) in 2024, increased from RMB 0.99 million in 2023, mainly due to higher administrative expenses.

• Working capital deficit as of September 30, 2024: RMB 10.3 million (US$1.46 million); cash and bank balances: RMB 0.13 million (US$18,656).

• Accounts receivable decreased 14.1% to RMB 40.4 million (US$5.76 million) in 2024.

Use of proceeds and capital allocation

• Net proceeds from IPO (estimated $8.7 million) to be allocated: 20% for raw materials procurement, 20% for customer acquisition and market expansion, 20% for efficiency and SCM service enhancement, 10% for eco-friendly materials and sustainable sourcing, 30% for general working capital.

• No proceeds from shares sold by selling shareholders.