Graduate student starts business in Anhui, with annual sales of nearly 1 billion yuan!

Relaunched on the market again!

Since the beginning of 2025, many overseas companies have been striving to go public. Recently, there is more good news. This time, disposable sanitary products from Anhui are selling well!

Anhui Damai submits IPO application with annual revenue of nearly 1 billion yuan

In October 2015, Anhui Wuhu Youpai Care Products Technology Co., Ltd. (hereinafter referred to as Youpai Technology) was listed on the New Third Board and delisted in 2020.

Recently, Youpai Technology submitted a public transfer statement to the National Equities Exchange and Quotations, once again launching an attack on the New Third Board. The lead underwriter is CICC.

Youpai Technology specializes in disposable sanitary products. Its main products can be divided into several categories: pet care products, adult care products, household paper and masks, including disposable pet urine pads, pet diapers, cat litter, adult diapers, soft paper towels, face wash towels, etc. Its main customers include pet owners, the elderly, mothers and babies, patients and other incontinent people.

In 2022, 2023, and January to August 2024, Youpai Technology's operating income was RMB 929 million, RMB 964 million, and RMB 681 million, respectively. Considering that the second half of each year is the peak sales season, it can be estimated that the company's revenue for the whole year of 2024 will be very considerable; the net profit was RMB -18.27 million, RMB 60.99 million, and RMB 39.09 million, respectively. The compound growth rate in 2023 was as high as 362.14%. It only took one year to go from loss to large profit.

Pet care products are the main product type and revenue source of Youpai Technology . The sales revenue in each period of the reporting period was RMB 506 million, RMB 657 million and RMB 503 million, respectively, accounting for 54.42%, 68.19% and 73.91%, respectively.

As pet owners' awareness of scientific and healthy pet care continues to grow, they not only want their pets to be well fed, but are also more willing to pay for a high-quality lifestyle for their pets. The global pet products market is steadily expanding, reaching $52.405 billion by 2023, with a compound annual growth rate of 7.6% from 2018 to 2023. By region, the United States is the largest market, with a pet products market size of $25.945 billion in 2023; the pet products market size in Western Europe is 10.007 billion euros in 2023.

Youpai Technology has positioned itself in the high-growth track of pet supplies and has been deeply engaged in the care segment, and the results have been obvious in terms of revenue.

In addition, Youpai Technology also has a relatively high revenue share in the categories of household paper and adult care products. Among them, adult care products include diapers and nursing pads. The consumer groups are incontinent people such as the elderly, patients, and women with mild incontinence. The revenue in the first eight months of 2024 was 62.63 million yuan, accounting for 9.19%. According to the US Centers for Disease Control and Prevention, 50.9% of elderly people over 65 years old have urinary incontinence or accidental fecal incontinence. Compared with developed countries abroad (80% in Japan, 60% in North America, and 58% in Western Europe), the penetration rate of adult incontinence care products in China is at a relatively low level (only 3%). Whether it is overseas mature markets or starting markets such as China, the category of adult care products has huge development potential. Youpai Technology can be said to be betting on new growth poles besides pet products.

Graduate students start businesses, both domestically and abroad! Amazon is the largest customer

Cheng Gang, the actual controller of Youpai Technology, has a postgraduate degree, which was not common in that era. Before founding the company, Cheng Gang worked as a teacher, a foreign trade manager of a down factory, and a marketing manager of a daily necessities company. His high degree and rich work experience laid the foundation for his later entrepreneurship.

In July 2006, Youpai Technology was officially registered and established in Wuhu, Anhui. At the beginning, it was mainly engaged in OEM. However, during the development of the company, the company gradually developed brand awareness and has successfully created a series of independent brands such as Honeycare, Cocoyo, and Unifree. The pet care products’ own brands include "Honeycare" (high-end) and "Cocoyo" (mid-to-high-end), and the adult care products’ own brands include "Unipride" (for women) and "FamiBetter" (for the elderly), and the categories include diapers and nursing pads.

In recent years, the strategic transformation of Uopai Technology's independent brand has begun to show results. The contribution of independent brand products to the company's overall sales revenue has rapidly increased from less than 30% in 2018 to more than 70% in 2022, becoming the company's main source of income.

Whether it is pet care products or adult care products, there are countless sub-categories under the major categories, and each track contains unlimited business opportunities. At present, Youpai Technology has successfully launched more than 100 products suitable for the global market, with more than 1,300 SKUs, and its products occupy a leading market position in multiple markets.

According to the statistics of JD.com, the products of Honeycare have maintained the first place in the domestic market share on JD.com in the past year. According to the report issued by Shangpu Consulting, the main product of Cocoyo, Kasuga Sakura Pet Training Pad, won the first place in the sales of pet care products in the whole network in 2022 and 2023.

In addition to domestic sales, Uopai Technology's products are also sold to many countries and regions around the world, including the United States, Japan, South Korea, Europe, Australia, and Southeast Asia. In 2022, 2023, and January-August 2024, the company's overseas main business income accounted for 46.69%, 60.09%, and 62.51% of its operating income, respectively. Overseas sales have become an important source of income.

By comparison, it can be found that the gross profit margin of Uopai Technology 's overseas sales is higher than that of domestic sales, and the gross profit margin of overseas sales has been steadily increasing in recent years. As pet care products have high gross profit margins in overseas sales, Uopai Technology has increased its product layout and achieved a double increase in revenue share and gross profit.

In overseas markets, UOPAI Technology's main partners include Amazon, Chewy and other well-known overseas comprehensive and pet vertical classification e-commerce platforms. It also produces OEM products for internationally renowned personal care and pet care brands such as Unicharm, Nippon Paper Trading, Petco, and Kimberly-Clark.

It is worth noting that Uopai Technology 's main customer and main supplier are Amazon.com, Inc. It not only sells its own-brand products to Amazon, but also opens direct stores on the Amazon platform to sell its own-brand products to individual consumers. Its brand "Honeycare" has been listed as the best seller in the pet category on Amazon in the United States only one year after its launch. Searching for brands on the Amazon platform shows that cat litter, training mats and other single products continue to sell well, with monthly sales exceeding 4,000 orders.

From January to August 2024, Uopai Technology's overseas business continued to expand, and the proportion of revenue from the e-commerce platform model continued to increase. To this end, the company will expand the main online channels currently covering the market to expand its sales advantages, and will also build new office buildings and R&D buildings, and strive to build a super factory and a leading brand, determined to become a leading company in the industry.

“ Brand sales have grown by more than 30% for many consecutive years .” With this as an example , Cheng Gang expects that the goal of becoming a global hidden champion will be achieved in no more than five years.

Anhui