Company Description

Through our operating subsidiaries in mainland China and Hong Kong, we are principally engaged in the production and sale of zipper sliders and zipper chains, trading of textile raw and auxiliary materials used in zipper production, and provision of zipper processing services in mainland China and Hong Kong. Since our establishment in 1993, Fuxing Group has built up a credible track record and market reputation with a diversified customer base of over 1,600 customers in China, including many renowned brands such as Anta, Septwolves, LiNing, 361°, Samsonite and Northpole China. We aim to become one of the leading zipper product manufacturers and to achieve recognition as a market leader for our brand name, quality of products and research and development (“R&D”) capabilities. Our zipper products consist mainly of zipper sliders and zipper chains and are widely used in apparel (including sportswear), shoes, camping equipment, bags, such as handbags, briefcases, luggage and laptop bags, and upholstery furnishings, such as bedding and sofa covers. Our products are sold mainly to China local manufacturers of apparel and footwear products, camping equipment, bags, manufacturers of upholstery furnishings, as well as other zipper manufacturers which further process or assemble our zipper products in order to customize these according to their customers’ needs. Some of the zipper products which we sell are manufactured under our “3F” brand name. In addition, we sell to trading companies which export our zipper products to overseas markets, including Australia, European countries, such as Russia, Turkey, Spain, Italy, Poland, Belgium, Greece, Slovenia and Lithuania, and Asian countries, such as South Korea, Thailand, Vietnam and Indonesia. Our operating subsidiary, Fook Hing Trading in Hong Kong, is primarily engaged in the trading of textile raw and auxiliary materials, including rubber thread, nylon fabric and nylon yarn. Our operating subsidiaries, Fulong Zipper, Fuxin Electroplating and Jianxin Weaving, provide zipper processing services, including color dyeing of fabric tapes for zippers, electroplating services for zipper sliders and manufacturing and sales of dyed yarn. Our manufacturing facilities are located in Jinjiang City, Fujian Province. Our manufacturing operations are highly integrated, and we have an extensive range of machinery and equipment at our manufacturing premises. Building on our technical knowledge and our manufacturing expertise, we are able to integrate our operations and business to cater to our customers’ needs. We have the ability to manufacture the entire zipper product from mold-making for the production of our zipper sliders to the manufacturing of fabric tape for zipper chains. Our range of manufacturing machinery also enables us to produce our zipper chains and zipper sliders using a wide range of materials, colors, and sizes in accordance with our customers’ requirements. Most of our raw materials are mainly procured from our suppliers located in Fujian Province. We accord high priority to quality control during the production processes of our products. Our subsidiary, Fookhing Zipper, was awarded the GB/T 19001-2016/ISO 9001:2015 Quality Management System Certificate, valid through September 2025, by the World Standards for Certification Center Inc. (“WSF”), a third-party certification body headquartered in China. Fookhing Zipper was also awarded the GB/T 45001-2020/ISO 45001:2018 Occupational Health and Safety Management System Certificate and GB/T 24001-2016/ISO 14001:2015 Environmental Management System Certificate by the WSF, both valid through September 2025. Fookhing Zipper also holds the GRS Certificate (GRS 4.0), valid through May 2024, evidencing that our products passed the Global Recycled Standard 4.0, issued by Intertek, a multinational assurance, inspection, product testing and certification company headquartered in London, England. Fookhing Zipper is authorized to use the label “STANDARD 100 by OEKO-TEX®”, valid through September 2024, on our zipper products, which is one of the world’s best-known labels for textiles tested for harmful substances, issued by the International Association for Research and Testing in the Field of Textile and Leather Ecology, headquartered in Zurich, Switzerland. All our zipper products are manufactured in accordance with the PRC zipper industry standards as set by China National Light Industry Council. To ensure continual innovation in product quality and improved efficiency, we place strong emphasis on product and technical R&D. We have a R&D team comprised of 19 members. Our R&D team leader, Mr. Yanming Luo, has 20 years of industry experience and was the inventor of 33 valid patents related to zipper design as of November 2023. We generate revenue primarily from three sources, (i) production and sale of zippers, including zipper chains and zipper sliders (the “Zipper Segment”), (ii) trading of textile raw and auxiliary materials (the “Trading Segment”), and (iii) zipper processing services (the “Processing Segment”). Our total revenue decreased from approximately US$65.7 million for the six months ended September 30, 2022 to approximately US$54.1 million for the six months ended September 30, 2023. Our net income decreased from approximately US$4.4 million for the six months ended September 30, 2022 to approximately US$1.1 million for the six months ended September 30, 2023. The revenue derived from the Zipper Segment accounted for 58.7% and 53.9% of our total revenue for the six months ended September 30, 2022 and 2023, respectively. The revenue derived from the Trading Segment accounted for 34.2% and 38.9% of our total revenue for the six months ended September 30, 2022 and 2023, respectively. The revenue derived from the Processing Segment accounted for 7.1% and 7.3% of our total revenue for the six months ended September 30, 2022 and 2023, respectively. Our total revenue decreased from approximately US$123 million in the fiscal year ended March 31, 2022 to approximately US$120 million in the fiscal year ended March 31, 2023. Our net income decreased from approximately US$4 million in the fiscal year ended March 31, 2022 to approximately US$1.6 million in the fiscal year ended March 31, 2023. The revenue derived from the Zipper Segment accounted for 61% and 56% of our total revenue for fiscal years ended March 31, 2022 and 2023, respectively. The revenue derived from the Trading Segment accounted for 33% and 39% of our total revenue for the fiscal years ended March, 2022 and 2023, respectively. The revenue derived from the Processing Segment accounted for 11% and 10% of our total revenue for the fiscal years ended March 31, 2022 and 2023, respectively. --- Our principal executive office is located at Hangbian Industry Area, Longhu Town, Jinjiang City, Fujian Province, the PRC, and our phone number is +86-595-85287788. Our registered office in Bermuda is at Clarendon House, 2 Church Street, Hamilton HM11, Bermuda, and the phone number of our registered office is +1-441-295-5950. We maintain a corporate website at www.3fzipper.com. Our agent for service of process in the United States is Cogency Global Inc., located at 122 East 42nd Street, 18th Floor, New York, NY 10168.