Ping An Biomedical Co (PASW) Registration Filing summary

Company overview and business model

• Operates as a holding company in the Cayman Islands, with all operations conducted through a PRC subsidiary focused on apparel supply chain management (SCM).

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

• Vertically integrated, asset-light model relying on third-party suppliers and contract manufacturers.

• Customer base includes brand owners, textile manufacturers, sourcing agents, and online retailers, primarily in China.

• No long-term contracts with customers or suppliers; business is order-driven 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 prior year.

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

• Net loss: RMB 1.28 million (US$0.29 million) for 2024, increased from RMB 0.99 million loss in 2023.

• 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 IPO (estimated $8.7 million) to be allocated: 20% for raw materials procurement, 20% for customer acquisition/marketing, 20% for efficiency and SCM capability enhancements, 10% for sustainable materials sourcing, 30% for general working capital.

• No proceeds from shares sold by selling shareholders.