Fuling Global CEO releases open letter to investors
Fuling Global announced that its CEO, Xinfu Hu, released an open letter to investors. The letter said, "Revenue grew at an annual compound rate of 14.35% to $142.20 million in 2018, up from $83.18 million in 2014. For the four years ending 2018, the company realized a total after-tax profit of $31.79 million. We invested most of our $20 million IPO proceeds in our new Wenling factory. The total investment of this new factory reached $58.95 million. This included the purchase of land use rights of 32.45 acres (197 mu) of land, the construction of 25 acres of new factory, dormitories and office space, more than 200 new production machines, and 3,670 KW rooftop photovoltaic power system. In four years, our sales volume doubled from 25 million KG to almost 50 million KG. We have doubled our production capacity, increased total customers from 129 to 151, registered 18 patents, and transitioned our product line to include both plastic and paper products to address and anticipate evolving customer needs. As an enterprise exporting most of our products to the United States, we face serious challenges from the many changes implemented in trade agreements between China and the United States. After the U.S. announced tariffs on some Chinese products exported to the United States, we decided to establish a factory in Monterey, Mexico, a city near the U.S. - Mexico border to mitigate these trade risks. At present, we have chosen the production site and leased a building to be built out for the Mexico factory. Production equipment were transported from China has arrived in Mexico. We are in the process of preparing the relevant management, technology and production personnel. The factory is scheduled to start production in June 2019. This plan will help reduce much of the impact of the China-US trade changes and increase our global market opportunities... Supported with production bases in Wenling, China, Pennsylvania, U.S., and Monterrey, Mexico, a full suite of plastic and paper serviceware products, a diversified global customer base, and highly recognized brand names, we firmly believe that we now have the resources to support strong growth. We will continue to expand the sales and distribution channels, use e-commerce to carry out online and offline synchronous operations, and strengthen our relationships with existing customers while exploring new market opportunities."