On July 4, Arte Mundi, the leading enterprise in the domestic flooring industry issued a prospectus (application draft) and plans to be listed on the Shanghai Stock Exchange.

The main business of Arte Mundi is wood flooring, with a revenue scale of about 1 billion. Among the listed companies in this field, the market size is smaller than that of Powerdekor, which is close to Der Future and Vohringer. The company's bulk business accounts for up to 70%. In addition, it is worth mentioning that the shareholders behind the company also include Red Star Macalline and Easy Home, and their shareholding ratio is not low.

For the first time, the prospectus disclosed in detail the company' s revenue, net profit, number of dealers, shareholding structure and other important operating information in the past three years.

The prospectus shows that from 2018 to 2020, Arte Mundi will achieve operating income of approximately 708 million, 767 million, and 1.028 million, respectively; and achieve net profits of approximately 36 million, 54 million, and 85 million, respectively.

Among them, in 2020, Arte Mundi's operating income increased by 34% year-on-year, and its net profit increased by 57% year-on-year.

The prospectus disclosed that the proposed public offering of no more than 33,333,600 shares. The raised funds will be used in projects such as parquet construction projects with an annual output of 6 million square meters, intelligent workshop construction projects, information system upgrade and transformation projects, marketing network expansion and brand aesthetic promotion projects, and supplementary working capital projects.

According to the prospectus, the actual controllers of the company are brothers Bu Lixin and Bu Hongwei, who together hold 56.01% of the shares.

It is worth mentioning that if Arte Mundi fails to submit a listing application on or before December 31, 2021, or if the listing application is withdrawn, rejected, or rejected after submission, Red Star Macalline and other shareholders have the right to request the controlling shareholders and/or actual controllers of the company repurchase the shares of the company held directly or indirectly by them.

The company has major brands such as "Arte Mundi", and its main products include solid wood composite flooring and laminate flooring. Among them, the performance of solid wood composite flooring has contributed a lot, and the revenue in 2020 will exceed 900 million, accounting for 87.93%.

The bulk sales model accounted for the highest proportion of the main business income of Arte Mundi and showed a rapid growth trend. The sales of the distribution business grew steadily, and the amount of the direct sales model was relatively stable; the export was direct export, and the amount was small.

In the retail channel, as of the end of 2020, the company has a total of 150 distributors, showing a growth trend.

At present, the scale of the company' s wood flooring market is smaller than that of Powerdekor, and is close to Der Future and Vohringer. According to the China Forestry Statistical Yearbook, our country' s 2018 annual sales revenue of wood flooring was 104 billion yuan. Calculated according to the scale of revenue, the company' s main business revenue in 2018 was 707 million yuan, and the company's market share was about 0.68%. There is still a lot of room for improvement.

On the whole, although the shareholders of Arte Mundi Group are backed by giants such as Red Star Macalline and Easy Home, and their performance is also good, compared with other floor listed companies, they have problems such as single product and high debt-to-asset ratio. In the face of fierce competition in the flooring industry, if scholars can successfully enter the capital market, I believe it will win new development momentum.