Some of the company's products, source: prospectus

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The company is mainly engaged in the research and development, production and sales of plastic tableware and biodegradable tableware. Its main products include knives, forks, spoons, straws, water cups, small measuring cups, plates, cup lids, take-out boxes, take-out bowls, paper products (paper cups and paper straws), etc.

From January to June 2024, the revenue from plastic tableware products accounted for 70.36% of the company's main business revenue, biodegradable tableware accounted for 5.89%, and paper products and others accounted for 23.75%.

In 2021, 2022, 2023 and January-June 2024 (reporting period), the company achieved operating income of RMB 1.458 billion, RMB 2.154 billion, RMB 1.889 billion and RMB 1.099 billion, and realized net self employed data profit attributable to shareholders of the parent company of RMB 116 million, RMB 255 million, RMB 216 million and RMB 110 million, respectively. The company's operating performance grew rapidly in 2022.

Fuling Co., Ltd.'s operating income and net profit attributable to shareholders of the parent company in 2023 decreased by 12.32% and 15.55% respectively compared with 2022; from January to June 2024, the company's operating income and net profit attributable to shareholders of the parent company increased by 35.84% and 11.55% respectively compared with the same period in 2023.

During the reporting period, the company's products were mainly exported, with the United States being the company's most important sales market. During each period of the reporting period, the company's sales revenue to the U.S. market accounted for 71.31%, 76.45%, 65.73% and 65.74% of its main business revenue, respectively.

Therefore, Fuling’s operating performance is mainly affected by factors such as changes in U.S. market demand and fluctuations in the RMB/USD exchange rate. A decline in U.S. market demand will lead to a decrease in the company’s orders, and an appreciation of the RMB exchange rate will lead to a decrease in the company’s RMB revenue, a decrease in exchange gains or even exchange losses.