Over the past 20 years, Fuling Global has grown from a small manufacturer of plastic household articles and baskets into one of China’s largest exporters of disposable serviceware. Today, the company operates precision manufacturing facilities in both the United States and China that specialize in the production of a wide variety of plastic serviceware products – including disposable cutlery, drinking straws, cups and plates. Fuling’s products are primarily sold to customers throughout the U.S. and Europe and include some of the world’s most recognizable brands, such as Wendy’s (NASDAQ: WEN), Burger King (NYSE: QSR), KFC (NYSE: YUM), Walmart (NYSE: WMT) and McKesson (NYSE: MCK).
According to market research firm The Freedonia Group, the U.S. foodservice disposables industry, of which Fuling is a part, accounted for roughly $18 billion in 2014, and steady growth is expected to continue in the years to come. By 2019, the report estimates that the industry will grow to $21.9 billion, spurred by rising demand in both the retail and hospitality segments. In order to better capitalize on this growth, Fuling completed an initial public offering of its ordinary shares and commenced trading on the NASDAQ Capital Market on November 4, 2015.
“Our IPO on NASDAQ is an important step toward becoming a significant player in the global plastic serviceware market,” Guilan Jiang, chairwoman of Fuling, stated in a news release. “We expect the increased publicity and name recognition that come with being a NASDAQ-listed company, combined with our access to new sources for capital, position us well for growth.”
Following its IPO, Fuling is in a strong position to build on its recent financial performance. In the third quarter of 2015, the company leveraged a significant drop in raw material costs in order to achieve a 17 percent year-over-year increase in net income. In European markets, Fuling recorded revenues in excess of $2 million for the period, an increase of 45 percent over the previous year. As it continues to focus on increasing its penetration in pivotal global markets and expanding its production capacity, Fuling will look to promote sustainable growth moving forward.
“We are encouraged by this quarter’s results, which show improved gross and operating margins, net income and sales volume,” stated Xinfu Hu, chief executive officer of Fuling.
With a roster of multinational customers and an expanding product line, Fuling is in a favorable position to increase its market share in the global disposable serviceware market. Look for the company to lean on the marketability of its IP portfolio – including nearly 30 patents focused on environmentally-friendly materials and technology – in order to fulfill its vision of becoming an international leader in the production of disposable cutlery, straws and other serviceware.
For more information, visit www.ir.fulingglobal.com
