Fang Xin

completed

The proposed project involves an investment of up to $20.0 million (combination of loan and equity) in Fangxin Limited (a Hong Kong based holding company, the “Holdco” or the company) and its wholly owned subsidiaries (operating in mainland China, “the Subsidiaries”) to support the Holdco and Subsidiaries’ (together referred to as “the Group” or “Fangxin”) expansion program, which is estimated at $50.0 million. The Group is engaged in the development, production and sale of cosmetic packaging components. The expansion program comprises of the following components: - improving the current technology, facility and working environment of anodizing process and production; - increasing the capacity of the existing operations; - the development and manufacture of mascara and pump-based line of products. Since 1999, Fangxin has evolved to supply the entire chain of metal and plastic cosmetic and personal care packaging components to several well known companies. Today, the Group offers a fully-integrated, high-precision process, which includes: - research and development, - prototyping, - mould building, - injection molding, - blow molding, - vacuum electroplating, - UV coating, - surface printing, - hot stamping, - secondary processing, and - assembly. With the acquisition of a subsidiary in 2003, Fangxin gained the capability to mix bulk cosmetics and fill the containers, thus closing the supply chain loop from design to finished products. None of Fangxin’s competitors possess such a fully integrated supply chain. Customers looking to reduce the numbers of suppliers and moving into “supplier-managed-inventory”, which is the trend, value this “one-stop-shop” potential.