Corporate Business—汇森官网

Corporate Business

We are a manufacturer of furniture products in the PRC with a primary focus on the manufacture and sales of panel furniture by way of ODM. Our vertically integrated business model allows us to combine our in-house product design and development expertise with our integrated manufacturing platform, providing full range services covering product design and development, manufacture and sales of panel furniture, and securing stable supply of our principal production materials, i.e. particleboards and steel tubes, by manufacturing them on our own.

We are a manufacturer of furniture products in the PRC with a primary focus on the manufacture and sales of panel furniture by way of ODM. Our vertically integrated business model allows us to combine our in-house product design and development expertise with our integrated manufacturing platform, providing full range services covering product design and development, manufacture and sales of panel furniture, and securing stable supply of our principal production materials, i.e. particleboards and steel tubes, by manufacturing them on our own.

We were the largest panel furniture exporter in terms of export value in the PRC in 2019. According to the F&S Report, we held a market share of the panel furniture export market in the PRC of approximately 3.92% in 2019. The panel furniture export market in the PRC is highly fragmented. In 2019, the aggregated export value of the top five panel furniture exporters in the PRC accounted for only approximately 5.73% market share of PRC’s total panel furniture exported.

Based on our customers’ feedback their potential demand on such products, we have started commercial production of upholstered furniture, outdoor furniture and sports and recreational equipment since 2017. During the Track Record Period, our furniture products were mainly sold to the U.S. market on wholesale basis, including overseas retail chains directly or through our customers which were furniture traders. Walmart is one of our major customers of our furniture products.

we have five self-owned production facilities

Huisen Furniture Factory

Huisen Mingda Factory

Aigesen Factory

Huiming Wood Factory

Weiye Jiankang Factory

To capture the benefit of vertical integration of our manufacturing operation and secure stable supply of our principal production materials for production of our panel furniture, we also manufacture particleboards, steel tubes, plastic tubes and plastic components principally for our own production use. Our fully automated particleboards production facilities at our Aigesen Factory enable us to produce particleboards, being the principal production materials of our panel furnitures. We also produce steel tubes at our Weiye Jiankang Factory, and plastic tubes and plastic components at our Huisen Furniture Factory, for our production of our panel furniture. We believe such an integrated manufacturing model helps us to maximise operational efficiency, minimise production costs and maintain quality control, thus allowing us to offer our products to customers at competitive prices and at quality standards which satisfy our customers requirements, thereby allowing us to enhance profitability.

We offer a wide range of furniture product mix for home, office and commercial uses. Our products comprise of three categories, namely (i) panel furniture (such as television cabinets, bookshelves, shelves, desks and coffee tables), upholstered furniture (such as sofas), and (ii) others, which comprises of, outdoor furniture (such as outdoor tables, outdoor stools and fire pit tables) and sports and recreational equipment (such as table tennis tables, foosball tables and pool tables). While our furniture products are primarily made of particleboards and MDFs, we also use other production materials such as plastic tubes, plastic components, steel tubes and metal components in our products depending on the design and customers’ specifications.

We place strong emphasis on environmental protection and product safety. We also seek to avoid deforestation and damage to the environment by actively adopting environmentally responsible procurement and green manufacturing practices. Particleboards produced by us are mainly made of wood residue and wood waste such as sawdust, wood shavings and wooden off-cuts. As our particleboards are made of recycled materials, our products, as an alternative to solid wood products, reduce the need of exploitation of natural forest resources. In recognition of our efforts, Huisen Furniture’s quality management system has been accredited with ISO9001: 2015/GB/T 19001-2016 in respect of production of K/D furniture and Huisen Furniture’s environmental management system has been accredited with ISO14001: 2015/GB/T 24001-2016 for production of K/D furniture and related management activities.

In respect of product safety, in accordance with the requirements by our customers, our products are also subject to third party testing by accredited third-party testing laboratories in relation to, among others, product safety, use of toxic and/or hazardous substances and flammability before delivery to our customers. This ensures that our products’ compliance with the relevant local product safety requirements.