Man Wah to sell stock
Reports U.S. sales of $99.7 million
By Larry Thomas -- Furniture Today, March 29, 2010
HONG KONG —
Man Wah Holdings, a fast-growing Chinese motion furniture producer that generates about 40% of its revenues in the U.S. market, is making an initial public offering of common stock that will be listed on the Hong Kong Stock Exchange.
The stock offering, which represents a 25% stake in the company, is expected to raise 2.3 billion Hong Kong dollars, or about $294.4 million, according to a prospectus filed with the stock exchange.
Man Wah, which markets motion furniture under the Cheers brand name, said nearly half the proceeds will be used to expand its factory complex in Huizhou and build two new factories.
The Huizhou facility, whose products primarily are exported to the U.S. and Europe, has about 1.9 million square feet of factory space and can produce 516,000 sofa sets annually. According to the prospectus, the expansion would increase annual capacity to 816,000 sofa sets by March 31, 2011.
In addition, the company said it planned to build a new production facility in Wujiang to service its network of company-owned and licensed retail stores in the Yangtze Delta region, and another factory and/or distribution center in an undetermined city in northern China.
The remainder of the proceeds would be used to expand its store network in China, boost marketing and advertising efforts, repay existing debt and provide funds for working capital and strategic acquisitions, the prospectus said.
According to the prospectus, the company has had a meteoric rise in the U.S. market the past three years and is now the eighth-largest motion furniture resource in the country.
For the year ended March 31, 2009, Man Wah's U.S. sales totaled 777.4 million Hong Kong dollars or about $99.7 million. That was up 51% from the year ended March 31, 2008, when U.S. sales were 514.2 million Hong Kong dollars or about $65.9 million.
For the year ended March 31, 2007, U.S. sales were 201.6 million Hong Kong dollars, or about $25.9 million.
The prospectus also noted that U.S. sales for the six months ended Sept. 30, 2009 were 644 million Hong Kong dollars, or about $82.6 million. However, it did not list U.S. sales for the comparable period in 2008.
Worldwide sales for the six months ended Sept. 30 were 1.33 billion Hong Kong dollars, or about $170.1 million — up 29.8% from a year earlier.
For the year ended March 31, 2009, worldwide sales were 1.96 billion Hong Kong dollars or about $251.8 million, a 27.3% increase from the previous year.
The prospectus said Man Wah is the largest motion furniture producer in China, where its products are sold through a network of 509 company-owned and licensed retail stores. The company said 296 stores operate under the Cheers name and the rest are called Enlanda, which is the name of a bedding line the company sells in China.
Man Wah had been listed on the Singapore Stock Exchange, but was delisted last year and taken private by an investment firm controlled by Man Wah's principal owner, Wong Man Li.
Wong will control about 62% of Man Wah Holding's stock after the public offering is completed.
Man Wah shares are expected to begin trading in Hong Kong on March 31.
-
Motion furniture source Man Wah going public
Mar 24, 2010
Merinos Home Furnishings opening display room, Boyles addition
Ernest Warsaw, founder of Sheffield Corp., dies at 91
‘Mega vessels' likely to boost capacity, stabilize freight rates
HOM Furniture adds flooring to six Twin Cities stores
21 companies from Turkey, Taiwan and China to exhibit at Showtime
Featured Company
-
FurnitureCore.com
FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more
VIEW ALL GALLERIES
