A-share purchase | Hengxin Life (301501.SZ) opens for subscription to become a provider of paper and plastic dining utensils for companies such as Luckin Coffee, McDonald's, and MiXue Ice City.

On March 7th, Hengxin Life (301501.SZ) began the subscription process, with an issue price of 39.92 yuan per share and a subscription limit of 70,000 shares. The price-to-earnings ratio is 19.24 times, listed on the Shenzhen Stock Exchange, with Huaan as the sponsor (main underwriter). The prospectus shows that Hengxin Life engages in the research, development, production, and sale of paper and plastic tableware using raw materials such as pulp, PLA particles, and traditional plastic particles. After years of development, the company has independently developed and mastered technologies such as modification of PLA plastic particles, coating technology, and molding technology. It has the ability to provide integrated research, development, and manufacturing services for paper and plastic tableware based on individual customer needs. Its main products include biodegradable PLA-coated paper cups/bowls, PLA-coated paper food containers, PLA cups/lids, PLA food containers, PLA cutlery, PLA straws, paper cup sleeves, as well as PE-coated paper cups/bowls, PP/PET cups/lids, food containers, PS cup lids, etc. The company's main products in research, development, production, and salesbiodegradable tablewarecan achieve biodegradation, making them typical environmentally friendly and carbon reduction products that can help achieve the "dual carbon" goal, in line with national strategic direction. Hengxin Life has always focused on improving user experience, and its environmentally friendly, high-quality, and aesthetically pleasing products are highly favored by customers both domestically and internationally. It has become a supplier of paper and plastic tableware for many well-known domestic and international companies such as Luckin Coffee, Starbucks, Amazon, Heytea, McDonald's, Dicos, Mitsuken, Burger King, Coco, and others. The company holds a dominant position in the field of biodegradable tableware, with sales covering various countries and regions in Asia, North America, Oceania, and Europe. For six consecutive years, the company has been ranked as one of the top ten enterprises in China's light industry plastic industry (biodegradable plastics) and has been recognized as a champion enterprise in Anhui Province. It has also received recognition for its contribution to the promotion of bio-based and biodegradable materials markets, as well as the title of national-level green design products for its PLA cold drink straws, PLA injection molded tableware, PLA thermoformed tableware, PLA foamed disposable tableware, and PLA biodegradable coated paper products. In terms of finances, in 2021, 2022, 2023, and the first half of 2024, Hengxin Life achieved operating income of approximately RMB 719 million, 1.088 billion, 1.425 billion, and 733 million respectively, with net profits of approximately 81.08 million, 166 million, 221 million, and 106 million during the same periods.