Hong Kong Lixin Dehao Accounting firm Co., Ltd.
Windward 3, Regatta Office Park PO Box 1350 Grand Cayman KY1-1108 Cayman Islands
Head Office and Principal Place of Business
Room 4-8, 2 / F, Sham Wan Yacht Club Building, 8 Sham Wan Road, Aberdeen
Founded in 1993, the Group is headquartered in Hong Kong, China and operates in Vietnam, mainly engaged in the manufacture and sales of candle products.
Headquartered in Hong Kong and operating in Vietnam, we are mainly engaged in the manufacture and sale of candle products such as daily candles, aromatherapy candles and decorative candles, accounting for 95.7%, 96.4% and 96.5% of the total revenue for the two years ended December 31, 2016 and the six months ended June 30, 2017. We also manufacture and sell other products, including aromatherapy diffusers. The candles made by the Group are mainly used for gifts or for personal use. During the track record period, our main markets are department store operators and purchasing agents headquartered in the United States and the United Kingdom, including Hobby Lobby, MellerDesign, Sainsbury's, Target, Waitrose and WilliamsSonoma (whose brands include WilliamsSonoma Home, Pottery Barn and West Elm). According to Frost Sullivan, we rank fifth among Vietnamese candle manufacturers, with a market share of about 5.4% in terms of the value of exports in 2016.
We mainly manufacture candle products according to customer requirements and specifications. Once we know the customer's inquiry, we will evaluate the product specifications and communicate with the customer. Due to the special needs of these customers, we will propose changes to the design and specifications. Once the final design and specifications are determined by the customer, we will produce samples and provide them for approval. We provide customers with a variety of services, including product design, raw material selection and procurement, sample candle products before mass production, laboratory testing and advice on product quality improvement.
Our production equipment is located in Amade Industrial Park, Tongnai Province, Vietnam. As at the last practicable date, we employed more than 800 production workers to operate and manage the production line. We mainly use our own production equipment to make products. During the track record period, (I) when the number of orders for each item is relatively small, or (ii) in order to improve production efficiency during the peak production season, we also outsource certain orders to our Chinese subcontractors. Major US and UK customers may audit our production equipment from time to time and no unregulated incidents are found during the track record. We will also conduct final testing of our products for some customers before delivery. For details of metrological control measures, please refer to the paragraph "quality Control" below in this section. For the two years ended December 31, 2016 and the six months ended June 30, 2017, the total subcontract cost accounted for about 9.4%, 20.8% and 17.5% of the cost of sales, respectively.