INTRODUCTION TO THE BUSINESS
• Aolike Guhan manufactures and distributes commercial refrigeration products both domestically in China and to overseas markets.
• Since 2016, the Company operates two business units, each focusing on its individual end market.
• Aolike, established in 1992, engages in the design, manufacture and sale of tailor-made commercial refrigeration products. Products are manufactured according to the specifications of the buyer. The setup and the time required for the production therefore vary significantly.
• Guhan, established in 2016, provides standardized products for their end market. Guhan displays beverages in their commercial refrigerators and has a shorter production time and a lower selling price compared to Aolike.
• Aolike owns a production plant in Taizhou with gross floor area of approximately 66,667 sqm. By the first half of 2013, Aolike started processing client orders in its newly built factory. Guhan owns a 36,063 sqm factory. Guhan started processing client orders in the last quarter of 2018.
• The major steps involved in the production process for Aolike and Guhan products can be broadly categorized into six stages: (i) processing of raw materials; (ii) manufacturing of parts and components; (iv) assembly; (v) final quality check; (vi) packaging and warehousing.
• Customer base of Aolike and Guhan is summarized as below:
• Aolike: confectionery companies, food companies and supermarkets are the major customer types for Aolike historically.
• Guhan: beverage companies and distributors are the key custom types
