Nantong, Jiangsu – German bed products brand Long Life Basics has two new Chinese shareholders. These are mattress and pillow maker Healthcare Co, and Red Star Macalline, a furniture retail chain.
The agreement was signed on March 16. No financial details have been disclosed.
In 2018 Healthcare Co. recorded CNY186m ($28m) net profit, up 19% from 2017. Revenue rose by 30% to CNY3.05bn, according to its annual report, which was released in March.
Last year, the company gained 55% of its revenue from the 3.7 m mattresses it produced. In addition, 10 m pillows accounted for 15% of its revenue.
With plants in Spain and Serbia and a planned site at Knoxville, Tennessee, the company’s overseas sales generated 83% of its total revenue in 2018. However, the company said that the overseas gross profit margin was 13% lower than the domestic market’s 43%.
In 2019, the company hopes to speed up its global expansion to counter trade conflict risks. These include the US anti-dumping investigation on Chinese mattress imports started last October.
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