HL CORP(SZ:002105)2022-12-08 01:34Company Overview - Shenzhen Xinlong Industrial Co., Ltd. has over 40 years of development history, starting from bicycle parts production and sales, now operating in three main business segments: bicycle parts, sports fitness equipment, and rehabilitation equipment [2][3] - The bicycle parts segment maintains a leading industry position, while the sports fitness and rehabilitation equipment segments are experiencing rapid growth [2][3] Business Strategy - The company aims to increase the sales proportion of sports fitness and rehabilitation equipment from approximately 30% to 50% in the future [3] - The sales model primarily focuses on OEM and ODM for exports, while establishing its own brand in the domestic market for sports fitness and rehabilitation equipment [3] - The company went public in 2007 to enhance brand recognition and sales channels in the domestic market [3] New Initiatives - The company has launched the "Rim Paradise" recreational vehicle after market research, designed to attract suitable age groups to experience the product in a park-like setting [3][4] - A 5,000 square meter site in Longgang District, Shenzhen, was leased and opened on July 19, 2015, marking the first commercial Rim Paradise project [4] Production and Operations - The relocation of the Longhua factory is ongoing, with plans to complete it by March 31, 2016 [4] - The company has incurred over 500,000 in employee compensation due to the factory relocation, but the developer will not provide compensation as per local regulations [4] - Production will not be affected as the relocation is being conducted in phases, with new facilities already established [4][5] Financial Performance - The third-quarter report indicated a significant decline in sales of sports fitness equipment due to high inventory levels from a major client, but new customers are being developed to fill the gap [5] - The overall performance is impacted by high initial investments and depreciation costs at Tianjin Xinlong [5] Employee Information - Tianjin Xinlong employs approximately 2,000 staff members [5] Investment and Financing - The newly established subsidiary "Shenzhen Rim Paradise Cultural and Sports Industry Co., Ltd." is responsible for the operation of the Shenzhen Rim Paradise, with an investment of approximately 4 million [5] - The company has not pursued refinancing since its IPO in 2007 due to a lack of suitable acquisition targets [6]