Hong Kong, May 20, 2024 (GLOBE NEWSWIRE) -- In the dynamic world of personal grooming, Raytech Holding (Nasdaq: RAY) emerges as a shining star, dedicated to enhancing consumer lifestyles through its innovative range of personal care electrical appliances. Since its inception in 2013, this Hong Kong-based company has garnered over 10 years of industry experience, positioning itself as a leading player in the market.

Exciting news hit the market as Raytech listed on the Nasdaq on May 15, under the symbol “RAY”, a testament to its remarkable achievements and future potential. To support its growth ambitions, the company has raised $6 million through an initial public offering of 1.5 million shares.

The company excels in sourcing and wholesaling Japan Pure Beauty-branded personal care and lifestyle electrical appliances for international brand owners. Its extensive product portfolio covers a diverse range of categories, including hair styling appliances, trimmers, eyelash curlers, and more. However, the company’s true expertise lies in sourcing and wholesaling hair dryers, where it offers a remarkable selection of salon-quality devices with advanced protective and styling features, as well as compact designs perfect for travel.

Strong and Long-Term Relation with Key Client

Raytech has forged a formidable and enduring alliance with Koizumi Seiki Corp., a leading corporation specialized in small appliance market that’s been operating for over 300 years since 1716. Koizumi Seiki Corp. is renowned as one of the top 10 sellers in terms of retail volume in Japan's thriving personal care electrical appliance market that commands a prominent position within the industry.

This partnership has proven to be a financial powerhouse, with Koizumi Seiki Corp. making substantial contributions to Raytech's revenue. In both the fiscal years ending on March 31, 2023, and 2022, Koizumi Seiki Corp.'s involvement accounted for a remarkable 91.3% and 97.8% of Raytech's total revenue, respectively. These figures underscore the pivotal role that Koizumi Seiki Corp. plays as a major client.

Raytech's unwavering dedication to cultivating enduring business relationships is exemplified by its longstanding association with Koizumi Seiki Corp. Leveraging its extensive experience and expertise in the personal care electrical appliances industry, Raytech consistently delivers exceptional products and services, earning the unwavering trust and confidence of Koizumi Seiki Corp.

The partnership with Koizumi Seiki Corp. not only solidifies Raytech's market position but also presents a gateway to boundless growth and expansion. Euromonitor International's study conducted in December 2023 revealed intriguing insights that the Japanese market presents ample opportunities for expansion, innovation, and improved consumer experiences in the personal care appliance industry. Overall sales value of personal care electrical appliances in Japan experienced a significant 10.8% increase in 2023. This growth was driven by higher average unit prices and enhanced product features, particularly in the hair care segment.

Raytech is also actively seeking to expand its market share in other markets including the United States, Europe, and Asia as the global market for personal care electrical appliances has witnessed remarkable growth, surging to a size of US$22.9 billion in 2023.

Enormous Market Growth Potential

Forecasts from IMARC Group indicate that the market will continue its upward trajectory, reaching a projected value of US$35.9 billion by 2032, with a compound annual growth rate (CAGR) of 5% during the period of 2024-2032.

The positive outlook for this market can be attributed to a multitude of factors. The industry has benefited from the significant growth of the electronics sector, coupled with rapid urbanization worldwide. Furthermore, changing consumer lifestyles and an increased emphasis on personal health and hygiene have been key drivers of market expansion. A growing trend among male consumers to maintain beards and experiment with hairstyles has led to a surge in demand for shavers and trimmers. In response, manufacturers have introduced innovative products that minimize damage to hair and skin over prolonged use. 

In this dynamic landscape, Raytech has emerged as a leading player, revolutionizing personal grooming experiences. With a steadfast commitment to excellence, profound market expertise, and an unwavering dedication to customer satisfaction, Raytech has established itself as a trusted partner for international brand owners. its extensive range of personal care electrical appliances, with a special focus on hair dryers, effectively meets the diverse needs of consumers worldwide.

Exceptional and Comprehensive Services Validates Stable Financial Performance

What sets Raytech Holding apart is its unwavering commitment to providing value-added services. With a team of highly skilled professionals boasting a collective industry experience of 16 years, the company not only assists customers in sourcing and production processes but also offers product design and development collaboration. its ability to anticipate consumer preferences and deliver technical recommendations ensures that the personal care electrical appliance products they create are tailor-made to meet the unique needs of brand owners.

Therefore Raytech’s success is underpinned by its in-depth understanding of this competitive market landscape, which helps brand owners navigate the challenges and unlock new opportunities for growth. Through its extensive market knowledge, Raytech empowers partners to thrive in the ever-evolving personal care electrical appliance industry.

In return, the company has demonstrated a commendable financial performance, characterized by a stable cash flow. In the fiscal year ending on March 31, 2023, Raytech exhibited strong financial performance, generating HKD45.52 million (equivalent to US$5.80 million) in revenue and net income of HKD6.29 million (equivalent to US$0.80 million), resulting in positive cash flow of HKD10.96 million (equivalent to US$1.40 million) from operating activities.

Similarly in the fiscal year 2022, the company generated HKD45.11 million in revenue and a net income of HKD9.44 million, which led to Raytech’s robust cash flow of HKD8.23 million from operating activities. 

These consistent and impressive cash flows underscore Raytech's sound financial management practices and its ability to generate favorable returns. The company's solid financial performance positions it well for future growth and success in the market, highlighting its financial stability and prudent operational strategies.

Looking ahead, Raytech aims to extend its business operations beyond Hong Kong, targeting the promising markets of the United States, Europe, and Asia. To support its ambitious expansion plans, the company intends to increase investments in the sales and marketing function, particularly in the U.S., Europe, and Asia markets.

As Raytech embarks on its journey to new markets, its unwavering commitment to customer satisfaction, proactive marketing efforts, and strategic resource allocation will continue to contribute to its success in the highly competitive personal care electrical appliances industry. By becoming a U.S.-listed public company and broadening its customer base, while establishing a strong presence in key regions, Raytech is well-positioned to realize its vision and achieve sustainable growth. 

Company: Raytech Holding Ltd.

Contact Person: Andrew Ling

Email: ling@raytech.com.hk

Website: www.raytech.com.hk/

Telephone: +852 2117 0236

City: Hong Kong

Disclaimer: The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.