(Note: We are incorporated in the Cayman Islands. As a holding company with no material operations of our own, we conduct our operations in China through our subsidiaries, and the consolidated variable interest entity, Aokai Fa. This is an offering of the Class A Ordinary Shares of the Cayman Islands holding company. You are not directly investing in and may never hold equity interests of Aokai Fa, the VIE, in China. The VIE, WFOE, and the VIE’s shareholders entered into the VIE Agreements; as a result of which we are regarded as the primary beneficiary of Aokai Fa for accounting purpose, and, therefore, we are able to consolidate the financial results of Aokai Fa in our consolidated financial statements in accordance with U.S. GAAP. However, neither we nor our subsidiaries own any share in Aokai Fa, and the investors will not and may never directly hold equity interests in the VIE either. The VIE structure cannot completely replicate a foreign investment in China-based companies. Instead, the VIE structure provides contractual exposure to foreign investment in us.)
We engage in the production and sales of Camellia Oil products in China through the VIE. Aokai Fa was founded in 2011 in Tangchi town, Shucheng county of the Anhui province in China. Aokai Fa is a large-scale producer of Camellia Oil in the Anhui province, and it is now one of the leading enterprises of forestry and agricultural industrialization in Anhui province. We integrate scientific research, farming, production, and sales. Our goal is to become a leading Camellia Oil producer in the PRC and to develop “Aokai Fa” into a leading brand in the Camellia Oil industry in the PRC.
Aokai Fa guarantees the quality of its Camellia Oil through a vertically integrated system which starts from the farms and moves all the way through production and sales. Aokai Fa has established a standard laboratory with professional laboratory personnel. In the production process, sampling and testing are carried out in accordance with the industry standards. Each batch of the finished products is tested in strict accordance with GB11765 National Standard for Camellia Seed Oil. The products are also sent to a qualified third-party testing agency for testing from time to time. Applying the multiple patents Aokai Fa holds in its production, Aokai Fa has perfected its production process. The products are produced in a sterile environment where Aokai Fa maintains strict control over its products’ quality at a much higher level than the national testing standards.
We maintain a strong and growing customer base through different channels of merchandising, including direct selling, sales exhibition, and franchising, etc. As of date of this prospectus, the Company has over 20 sales agents nationwide covering provinces including Beijing, Guangxi, and Fujian. We also export our goods to areas like Taiwan, Hong Kong, and Southeast Asia.
Over the years, we have maintained stable revenues and net income. For the years ended Sept. 30, 2022 and Sept. 30, 2021, the company had revenue of $19,829,224 and $18,540,385, respectively, and had net income of $3,435,613 and $2,362,859, respectively.
**Note: Net income and revenue figures are in U.S. dollars for the 12 months that ended March 31, 2023. (See chart below.)
(Note: Huake Holding Biology Co., Ltd. filed an F-1/A dated June 23, 2023, in which it updated its financial statements through March 31, 2023. Huake Holding Biology Co., Ltd. filed its F-1 on June 29, 2021. The company submitted confidential IPO documents on Dec. 11, 2020.)