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.
Healthcare Co expands into Germany, profits up in 2018
Healthcare moved into Spain in 2018
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.
Currency conversion: Xe.com
