Starlight Printing (SFHG.US) plans to list on NASDAQ. The China Securities Regulatory Commission requires the company to explain the reasons and rationality behind the high concentration of suppliers and customers.

On November 24, the International Department of the China Securities Regulatory Commission (CSRC) announced the supplementary material requirements for overseas issuance and listing registration (November 17, 2023 - November 23, 2023). Among them, Starry Printing was required to provide supplementary materials to explain whether the business operated by its domestic operating entity, Starry Printing, belongs to the prohibited or restricted areas of foreign investment listed in the Negative List for Foreign Investment Access (2021 Edition), as well as the reasons and rationality of high supplier and customer concentration. It is reported that on November 13, 2023, Starry Printing (SFHG.US) publicly disclosed its prospectus with the U.S. Securities and Exchange Commission (SEC) and plans to go public on the NASDAQ through an IPO. According to the SEC website, it secretly submitted its application to the SEC on June 1, 2022. The announcement stated that the CSRC requested Starry Printing to provide supplementary explanations on the following matters and asked lawyers to verify and provide clear legal opinions: First, please explain whether the business operated by your domestic operating entity, Starry Printing, belongs to the prohibited or restricted areas of foreign investment listed in the Negative List for Foreign Investment Access (2021 Edition). Second, please explain the consideration involved in the related transactions between Sky Way Network Group and your actual controller, as well as the relationship between them. Third, please explain the reasons and rationality of the high concentration of your company's suppliers and customers, and provide information on the significant business transactions between the main suppliers and customers and entities controlled by your actual controller, relatives of the actual controller, shareholders, directors, supervisors, and senior management personnel, both domestically and internationally. Information shows that Starry Printing is a mature one-stop printing service provider that mainly operates in Hong Kong and Mainland China. It has over 20 years of experience in the printing industry. The company offers a wide range of printing products, including book products (children's books, educational books, art books, notebooks, diaries, and journals) and innovative packaging products (crafts, boxed sets, pop-up books, stationery products, assembly parts, other specialty products, shopping bags, and packaging boxes). Starry Printing's production base is located in Shenzhen, and its customers are primarily book retailers located in Hong Kong with clients spread across the world. In terms of finances, the company's revenue in 2021, the first half of 2022, and the first half of 2023 was HKD 162 million, HKD 129 million, and HKD 51 million, respectively. The corresponding net profits were HKD 2.8088 million, HKD 3.6515 million, and -HKD 3.7975 million.