NANTONG, Jiangsu—China-based companies Healthcare Co. Ltd. and Red Star Macalline Group Corp. Ltd. have signed on as shareholders in Germany-based bed products brand Long Life Basics.
The agreement was signed on March 16. No financial details have been disclosed.
In 2018, Healthcare Co. recorded $28 million in net profit, up 19 percent from 2017. Revenue rose by 30 percent to about $461 million, according to its annual report, which was released in March.
Last year, the company gained 55 percent of its revenue from the 3.7 million mattresses it produced. In addition, 10 million pillows accounted for 15 percent of its revenue.
With plants in Spain and Serbia and a planned site at Knoxville, Tenn., the company's overseas sales generated 83 percent of its total revenue in 2018. However, the company said that the overseas gross profit margin was 13 percent lower than the domestic market's 43 percent.
In 2019, the company hopes to speed up its global expansion to counter trade conflict risks. These include the U.S. anti-dumping investigation on Chinese mattress imports started last October.