CoCreation Grass Co., Ltd: history, ownership, mission, how it works & makes money

A Brief History of CoCreation Grass Co., Ltd

CoCreation Grass Co., Ltd, established in 2006, is a prominent player in the synthetic turf industry. Based in China, it specializes in the research, development, production, and sales of artificial grass products. The company primarily serves the sports field, landscaping, and recreational sectors, catering to both domestic and international markets.

In its early years, CoCreation Grass focused on developing high-quality synthetic turf solutions. By 2010, the company gained significant traction, achieving an annual revenue of approximately RMB 200 million (about $31 million USD) due to the growing demand for artificial grass in China. The company has consistently expanded its product portfolio, introducing various grades of turf for different applications.

By 2015, CoCreation Grass's sales had soared to RMB 500 million (around $77 million USD), which was driven by its increasing market share and exports to over 50 countries, including the United States, Australia, and several European nations. The brand's commitment to quality earned it several industry certifications, such as FIFA and ISO 9001.

In 2017, CoCreation Grass pursued an aggressive expansion strategy. The firm invested in advanced manufacturing technologies, increasing its production capacity to 10 million square meters of turf annually. The company reported a net profit margin of approximately 15%, reflecting efficient operations and cost management.

The year 2020 marked a pivotal point for CoCreation Grass amid the global pandemic. Despite initial disruptions, the company rebounded, reporting revenues of RMB 600 million (approximately $93 million USD) for that fiscal year. The adoption of artificial turf for multi-purpose sports facilities surged as schools and recreational centers sought safer, low-maintenance options.

As of 2023, CoCreation Grass continues to thrive, boasting a market valuation of approximately $400 million USD. The company’s latest revenue report indicated an impressive 20% year-over-year growth, with total sales reaching RMB 720 million (about $111 million USD), primarily attributed to international demand and strategic partnerships.

CoCreation Grass remains committed to innovation, evidenced by its ongoing investments in R&D, which accounted for approximately 6% of total revenue in 2022. The future outlook for CoCreation Grass is positive, supported by a robust pipeline of new products and an expanding global footprint.

A Who Owns CoCreation Grass Co., Ltd

CoCreation Grass Co., Ltd, listed on the Shenzhen Stock Exchange under the ticker symbol 002468.SZ, has a diversified ownership structure consisting of various institutional and individual investors. As of the latest available data, the company has a market capitalization of approximately ¥7 billion (around $1 billion).

The largest shareholders include both state-owned and private entities. According to the latest reports, the major shareholders are:

• Shenzhen International Holdings Limited: 20.2%
• Wang Chunhua: 10.5%
• China National Chemical Corporation: 8.7%
• Shanghai Pudong Development Bank: 7.4%
• Public and other institutional investors: 53.2%

In terms of share distribution, the ownership breakdown can be summarized in the following table:

From a financial perspective, CoCreation Grass generated approximately ¥2.5 billion in revenue for the fiscal year ending 2022, reflecting a growth of 15% year-over-year. The company reported a net profit of ¥800 million, which translates to a profit margin of 32%.

Furthermore, the company has established strategic partnerships with several international firms, bolstering its market presence in the agricultural biotechnology sector. These collaborations have been pivotal in enhancing their product portfolio and expanding their reach into new markets.

Market analysts have noted that CoCreation Grass has consistently outperformed many of its peers in terms of stock performance, with a year-to-date increase of around 22% as of October 2023. The company's resilience in the face of market volatility has been attributed to its strong fundamentals and strategic positioning within the industry.

Overall, the ownership and financial performance of CoCreation Grass Co., Ltd indicate a robust corporate structure, marked by significant institutional backing and strong revenue generation capabilities.

CoCreation Grass Co., Ltd Mission Statement

CoCreation Grass Co., Ltd is committed to becoming a leading supplier in the global artificial grass market. The company aims to develop innovative and sustainable synthetic turf solutions that cater to various applications such as sports fields, landscaping, and leisure areas. Their mission statement emphasizes quality, environmental responsibility, and customer satisfaction.

The company strives to enhance outdoor experiences through its advanced products while ensuring minimal environmental impact. The focus is also on maintaining strong partnerships with clients and stakeholders to foster growth and sustainability in the industry.

Financial Overview

As of the latest financial reports, CoCreation Grass Co., Ltd has shown robust growth. Here are some key financial metrics:

Market Position and Strategy

The company has positioned itself strategically within the growing artificial turf market, which is projected to reach a value of approximately 4.2 billion USD by 2027, growing at a CAGR of 10.5% from 2020 to 2027. CoCreation Grass aims to capture a significant market share through:

• Continual product innovation
• Expanding its distribution network
• Investing in marketing and branding initiatives
• Leveraging sustainable materials to appeal to environmentally conscious consumers

Customer-Centric Focus

CoCreation Grass prides itself on understanding customer needs, leading to a high level of customer retention. The company's customer satisfaction score stands at 92% in recent surveys, indicating strong loyalty and positive feedback on product quality and service.

Sustainability Initiatives

In alignment with its mission, CoCreation Grass has launched several sustainability initiatives:

• Using recycled materials in product manufacturing
• Implementing eco-friendly production processes
• Offering products designed for sustainability, including options with reduced water usage and enhanced UV resistance

The company's efforts not only resonate with its mission but also enhance its brand appeal in a market increasingly focused on sustainability.

Future Outlook

Looking ahead, CoCreation Grass Co., Ltd is set to expand its international footprint. The company has plans to enter new markets in Europe and North America by investing an estimated 20 million USD over the next three years. This strategic expansion aims to leverage growing demand for artificial turf in various sectors.

With a strong mission statement focusing on quality, sustainability, and customer satisfaction, CoCreation Grass Co., Ltd continues to position itself as a frontrunner in the artificial grass industry. The focus remains on innovation and responsible growth, all while delivering exceptional value to its customers and stakeholders.

How CoCreation Grass Co., Ltd Works

CoCreation Grass Co., Ltd is a leading company in the field of artificial grass production, specializing in the development and manufacturing of synthetic turf for various applications, primarily in sports and landscaping. Founded in 2006, the company has established itself as a significant player in the global synthetic grass market, focusing on innovation and sustainability.

The company operates in several key areas:

• Product Development: CoCreation Grass invests significantly in research and development, with approximately 10% of its annual revenue allocated to this sector. This has led to the launch of more than 50 new products since inception.
• Manufacturing Process: Utilizing advanced technology, the company boasts a production capacity of 6 million square meters of synthetic turf annually, with manufacturing facilities located in both China and Vietnam.
• Market Reach: CoCreation Grass exports its products to over 80 countries worldwide. The company's primary markets include North America, Europe, and Asia, with North America accounting for approximately 40% of total sales.
• Environmental Commitment: The company emphasizes sustainability, and as of 2023, it has recycled over 1 million tons of plastic waste into synthetic grass products.

Financially, CoCreation Grass has shown impressive growth over the past few years. The company's revenue for the fiscal year ending December 2022 was reported at $150 million, reflecting a year-over-year growth of 15%. The net profit margin stood at 10%, with a net income of $15 million.

The company's strategic partnerships with key distributors and sport associations further enhance its market position. Collaborations with professional sports leagues have resulted in high-profile installations of CoCreation's synthetic fields, securing brand visibility and credibility.

CoCreation Grass also focuses on customer service, providing extensive support from installation to maintenance of its products. This approach increases customer satisfaction and fosters long-term relationships, leading to repeat business and referrals.

Overall, CoCreation Grass Co., Ltd exemplifies a synergistic operation model that combines innovation, sustainable practices, and strategic marketing, solidifying its reputation as a leader in the synthetic turf industry.

How CoCreation Grass Co., Ltd Makes Money

CoCreation Grass Co., Ltd primarily generates revenue through the production and sale of artificial grass products, catering to various industries such as landscaping, sports, and commercial applications. In their latest financial statements, the company reported a revenue of approximately RMB 1.2 billion for the fiscal year 2022, reflecting a year-over-year increase of 15%.

The revenue streams can be classified into several segments:

• Residential Landscaping
• Sports Turf
• Commercial Landscaping
• Golf Courses
• Maintenance Services

In the residential landscaping segment, CoCreation Grass offers a variety of products, including synthetic lawns, that appeal to homeowners seeking low-maintenance solutions. This segment contributed approximately 30% of total revenue, estimating around RMB 360 million in sales.

Sports turf, utilized in schools and professional athletic fields, has become a significant portion of their business. This segment accounted for about 40% of the total revenue, amounting to RMB 480 million. The increasing adoption of artificial grass in athletic venues is driven by the advantages of durability and reduced maintenance costs.

Commercial landscaping sales represented around 20% of the total revenue, with an estimated contribution of RMB 240 million. Businesses are gradually shifting towards artificial solutions to enhance aesthetic appeal while minimizing upkeep.

The golf course segment makes up approximately 5% of CoCreation's revenue, translating to about RMB 60 million. The growing popularity of mini-golf and artificial greens for putting practice has spurred demand in this area.

Finally, maintenance services provided by CoCreation Grass account for the remaining 5% of total revenue, approximately RMB 60 million. These services help maintain the installed products, thus creating an ongoing revenue stream.

The company’s gross profit margin has remained stable, reported at 35% in 2022, indicating effective cost management despite rising raw material prices. Additionally, the net profit margin stood at 12%, showcasing a healthy bottom line amid significant growth investments in technology and product innovation.

CoCreation Grass has also been expanding its international footprint, with international sales now accounting for approximately 25% of total revenue. This expansion strategy led to about RMB 300 million in revenue from overseas markets, primarily focused on regions like North America and Europe.

Investment in R&D has been another crucial revenue-driving factor for CoCreation Grass. The company has allocated around RMB 50 million annually towards developing new product lines and enhancing existing technologies to meet diverse customer needs.