Smart Union Group (Holdings) Limited has been engaged in the manufacture of toys and sports equipment and education for original equipment manufacturers such as Mattel, Hasbro and Megablocks. The manufacturing facilities of the company are located in Guangdong, China, while most of the company’s sales were made in the United States and Europe. The company went public in September 2006, with an initial public offering listed on the Stock Exchange of Hong Kong, which reported $ 55 million in Hong Kong. From 2003 to 2007, the sales revenue of the company increased by HK $ 479 million to over 953 million HK dollars. The rapid growth of the company has been funded by the issue of shares and obtaining short-term bank loans. In 2007, Smart Union has invested in a silver mine in the province of Fujian to offset the impact of rising prices of raw materials used in production, and to expand its operational scope. In late 2007, the bank short-term debt of the company 240 million Hong Kong dollars to be repaid or refinanced.
Source: Thunderbird School of Global Management
Release: September 30, 2010. Prod #: TB0237-PDF-ENG
Smart Union Group (Holdings) Limited-A (Short) Case Solution Toy Story