In the early morning of June 12, Zhejiang Axilong Shunhua Aluminum Plastic Industry Co., Ltd. located in Xiaoyue Street was busy. Workers are loading packaged lipstick tubes onto trucks for export to the U.S. market through the port of Ningbo. The ups and downs of the U.S.-China trade friction don't seem to have much to do with the company.
"In the first quarter of this year, the company achieved sales revenue of 292 million yuan, an increase of 24% year-on-year." Gu Baifeng, director of the company's office, said that the sales revenue in the US market exceeded 150 million yuan. The predecessor of Axilong Shunhua Aluminum Plastic Co., Ltd. was Shangyu Shunhua Aluminum Plastic Industry Co., Ltd., which was established in 1988 with an initial investment of 30,000 yuan, and has developed into an industry "single champion".
"Joining the French Axilon Group will accelerate the company's globalization process; joining hands with 'CITIC Capital' will start a new journey for the company's development." Zhu Shengyao, general manager of Axilon Shunhua, was deeply moved. 31 years ago, he invested 30,000 yuan to establish Shangyu Shunhua Aluminum Plastic Industry Co., Ltd. "The company's first product was the Shanghai Jahwa Lumei lipstick tube, and then it formed an indissoluble bond with lipstick." Zhu Yaosheng still remembers it vividly.
In 2004, the company "married" with the French Axiron Group, which made the company's development enter the "fast lane". "At that time, many domestic private enterprises were influenced by the idea of 'preferring to be a chicken head rather than a phoenix tail', and were indifferent to the 'olive branch' extended by multinational companies, but we decisively looked at it from the perspective of globalization." Gu Baifeng told reporters. After the big family of Axilon Group, the company's main products have been upgraded and entered the middle and high-end lipstick tubes.
"On the one hand, the company is rapidly expanding at an average annual rate of more than 30%; on the other hand, the self-developed oil-free and glue-free center beam core material has seized the European and American markets." Gu Baifeng introduced that the company's products have attracted "Dior" and "Armani". ". "Gucci", "L'Oreal", "Estee Lauder", "Lancome" and more than 10 international well-known cosmetics brands are competing to purchase. By 2015, the company's sales had exceeded 500 million yuan. Over the years, the company has been intensively cultivating lipstick tube products, and currently has 13 national invention patents and 85 utility model patents in the package.
Just when Axilong Shunhua lipstick tube was shining in the industry, in March 2016, CITIC Capital Holdings Co., Ltd. threw a "red hydrangea" to the company. "The other party came and directly negotiated with our general manager. After the cooperation plan was initially finalized, the other party sent two teams of lawyers and accountants, and the cooperation entered a substantive stage." Gu Baifeng recalled.
After two years of "free love", in January last year, the two parties officially completed the equity transfer in Paris, France, and CITIC Capital acquired Axilong Shunhua for US$118 million. In this way, the company not only gained a firm foothold in the European and American markets, but also expanded its development momentum in the Asian market. It has also become a typical case in our district to accelerate enterprise development and industrial upgrading through domestic and foreign restructuring and cooperation.
"65% of the lipstick tubes of Estee Lauder in the United States are produced by us." Gu Baifeng said proudly that after the reorganization and cooperation with CITIC Capital, the company has steadily promoted the European and American markets through the American Axiron sales company. Especially during the Sino-US trade friction, the company's business in the US has not been affected at all. With the strong support of CITIC Capital, the company has also opened up the lipstick tube market in Japan, South Korea and other Asian countries.
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