New stock news | Le Shushi passed the hearing of the Hong Kong Stock Exchange and is ranked first in the African baby diaper and sanitary napkin market.

According to the disclosure of the Hong Kong Stock Exchange on October 26, Lujun Leisure Co., Ltd. (referred to as Lushu Shi) conducted a listing hearing on the Hong Kong Stock Exchange main board, with CICC, CITIC SEC, and GF SEC (Hong Kong) as its joint sponsors. According to Frost & Sullivan data, Lushu Shi is the sanitary products company with the largest number of local factories in Africa. By 2024 production volume, the company ranks first in the African baby diapers and sanitary napkins markets. The prospectus shows that Lushu Shi is a multinational sanitary products company focusing on rapidly growing emerging markets in Africa, Latin America, Central Asia, etc., mainly engaged in the development, manufacturing, and sales of baby diapers, pull-up diapers, sanitary napkins, and wet wipes for babies and women. According to Frost & Sullivan data, by 2024 sales volume, Lushu Shi ranks first in the African baby diapers and sanitary napkins markets, with market shares of 20.3% and 15.6%, respectively; and by 2024 revenue, Lushu Shi ranks second in the African baby diapers and sanitary napkins markets, with market shares of 17.2% and 11.9%, respectively. With over 15 years of multinational operating strategy, the company has become a leading enterprise in the sanitary products industry in multiple African countries and is also one of the important participants in emerging markets. Lushu Shi has established an extensive sales network covering more than 30 countries in Africa, Latin America, and Central Asia. The company believes this is one of its competitive advantages that sets it apart from its competitors. As of April 30, 2025, Lushu Shi has set up 18 sales branches in 12 countries, with a broad sales network including over 2,800 wholesalers, distributors, supermarkets, and other retailers. With this extensive sales network, the company has achieved rapid growth in the previous years. In 2024, the sales volume of baby diapers and sanitary napkins reached 4.122 billion and 1.634 billion pieces, achieving rapid growth with compound annual growth rates of 17.3% and 30.6% respectively since 2022. The company offers a variety of baby and women's sanitary products under different brands (including core brand Softcare as well as Veesper, Maya, Cuettie, and Clincleer). Each brand caters to different consumer groups. Softcare, the core brand, is positioned as a high-end brand targeting middle to high-end consumers with higher purchasing power seeking high-quality products. After years of development, Softcare has become a well-known brand of baby and women's sanitary products in many African countries and is a market leader. Financially, during the previous years, Lushu Shi has achieved stable growth and continuously improved profitability. The company's revenue increased from $320 million in 2022 to $454 million in 2024, with a compound annual growth rate of 19.2%. In the four months ending April 30, 2024, revenue increased by 15.5% from $140 million to $161 million in the four months ending April 30, 2025, due to the company's continuous improvement in market penetration in existing African markets, as well as expanding its business to Latin America and Central Asia leveraging its brand awareness and extensive sales network. The prospectus notes that the company faces foreign exchange risks as its sales and labor costs are mainly denominated in the local currencies of African, Latin American, and Central Asian countries, which may be more susceptible to currency fluctuations, while the company's purchases are predominantly imported goods denominated in US dollars and Chinese yuan.