The China export theme has been a consistent winner for ASX investors and continues to attract stockmarket hopefuls.

The latest prospectus is from D-Full Holding Group, an operation that runs skin and beauty products distributor Dkrevs Shanghai.

D-Full lodged a prospectus this week to raise $550,000, selling 5.5 million shares at 10c each to list not on the ASX but the smaller National Stock Exchange (NSX).

The NSX is Australia’s second stock market and has 83 listed companies. The overall market capitalisation of the exchange is $4.8 billion, a small slice of the ASX’s $1.9 trillion.

In the March quarter, the NSX banked $144,000 from customers and burned $838,000.

>> Scroll down for a list of ASX China-focused exporters

The NSX index has a number of industrial stocks (20 out of the full list) and has five mining and energy stocks.

The last two companies to list on the exchange have a retail focus: A2A (NSX:A2A) operates an online sales platform where users can convert loyalty points to cash. Actcelerate (NSX:ACT), which listed on Monday, is a diverse investor with holdings including smart vending machine company Trendy County.

NSX head of admissions John Williams tells Stockhead while there have been a couple of consumer-focused stocks in recent times, the index is not seeing any trends towards particular new industries.

Companies come to the NSX because “they see the ASX as not appropriate for them at this time”.

Reasons for this appeal include the absence of a profits or assets test for NSX listings and the reduced number of shareholders typically involved in NSX companies.

The exchange instead has tests including a “two-year minimum track record” provision and requires 50 or more security holders in order fora. company to list.

The D-Full Holding Group pitch

Dkrevs Shanghai is hoping to list on the exchange to grow its reach as a supplier of skin and beauty goods across mainland China, including upping the number of Australian products it can distribute through its bricks-and-mortar partners by establishing a formula Australian product import business.

At the moment, the company has eight Chinese product suppliers delivering everything from toothpaste to face masks into more than 7,000 bricks-and-mortar outlets.

In 2017, Dkrevs Shanghai generated $1.7 million in revenue but came out of the year with a loss of more than $4 million after costs including a one-off assets impairment $390,000.

The company is looking to tap into growing spending across China in beauty categories — a market the company puts at $67 billion annually by 2020.

It sees growth in online revenues, too, which only make up 20 per cent of its current sales. A report from research house Forrester this year predicted online retail spend in China will hit $1 trillion annually by 2022.

Stockhead has contacted Dkrevs Shanghai for further comment.

A $7 trillion opportunity

In a report published in May, Morgan Stanley predicted private consumption in China’s smaller cities “could be on track to triple between 2017 and 2030”.

That presents a big opportunity for ASX-listed China focused retail stocks, with daigou seller AuMake (ASX:AU8) previously predicting the market of shoppers bringing Australian products back to China is worth $1 billion annually alone.

AuMake’s share price is up 193 per cent over the past year to $10.45, while fellow ASX-listed China retail plays JATEnergy (ASX:JAT) is up more than 400 per cent to 7.3c and infant formula producer Clover Corp (ASX:CLV) is up 207 per cent to $1.35.

Here’s a list of ASX China-focused exporters:

ASX code Company 12-month price change Price Jul 4 (intraday) Market Cap
JAT JATENERGY 4.21428571429 0.073 37.1M
CLV CLOVER CORP 2.07954545455 1.355 244.5M
GRB GAGE ROADS 2 0.108 103.7M
AU8 AUMAKE 1.9375 0.235 64.9M
A2M A2 MILK 1.78666666667 10.45 7.8B
BXN BIOXYNE 1.72222222222 0.049 32.0M
WHA WATTLE HEALTH 1.63636363636 1.16 231.5M
SM1 SYNLAIT MILK 1.53902439024 10.41 1.9B
BUB BUBS AUSTRALIA 1.53333333333 0.76 339.4M
PPS PRAEMIUM 1.3698630137 0.865 346.4M
AB1 ANIMOCA BRANDS 1.28 0.057 28.7M
BAL BELLAMY'S 1.08064516129 14.19 1.7B
S66 STAR COMBO PHARMA (*listed May 2018) 1.01 1.005 68.3M
LON LONGTABLE GROUP 0.825 0.73 82.4M
NNW 99 WUXIAN 0.739130434783 0.16 179.8M
AWY AUSTRALIAN WHISKEY 0.607142857143 0.045 56.2M
NAM NAMOI COTTON 0.289473684211 0.49 68.0M
SFG SEAFARMS GROUP 0.274193548387 0.079 113.4M
WNR WINGARA 0.265306122449 0.31 30.0M
AVG AUSTRALIAN VINTA 0.258823529412 0.535 150.0M
MCA MURRAY COD AUST 0.224137931034 0.071 28.7M
AHF AUSTRALIA DAIRY 0.172413793103 0.17 39.3M
FOD FOOD REVOLUTION 0.134615384615 0.059 27.3M
CSS CLEAN SEAS SEAFOOD 0.133333333333 0.051 83.4M
D2O DUXTON WATER 0.0733944954128 1.17 104.7M
FFI FFI HOLDINGS 0.0651629072682 4.25 45.5M
CZZ CAPILANO HONEY 0.0264290104487 16.7 157.8M
MRG MURRAY RIVER ORG 0.023102310231 0.31 39.5M
RGP REFRESH GROUP 0.0181818181818 0.056 7.3M
BAH BOJUN AGRICULTURE (*listed Nov 2017) 0.0166666666667 0.305 37.1M
LGO LONGREACH OIL (suspended) 0 0.008 --
BUG BUDERIM GROUP -0.031746031746 0.305 26.2M
EHH EAGLE HEALTH -0.0689655172414 0.405 129.0M
HUO HUON AQUACULTURE -0.106639839034 4.44 384.3M
MTM MARETERRAM -0.120689655172 0.255 40.2M
TFL TASFOODS -0.193548387097 0.125 25.8M
BFC BESTON GLOBAL FOODS -0.204347826087 0.183 82.0M
JJF JIAJIAFU MODERN -0.222222222222 0.105 8.9M
FRM FARM PRIDE -0.224137931034 0.9 49.1M
HCT HOLISTA COLLTECH -0.247619047619 0.079 14.7M
AAP AUSTRALIAN AG -0.264705882353 0.025 3.8M
AS1 ANGEL SEAFOOD (*listed Feb 2018) -0.275 0.145 18.8M
OGA OCEAN GROWN ABALONE (*listed Nov 2017) -0.32 0.17 29.6M
BEE BROO -0.365853658537 0.13 76.0M
WLD WELLARD -0.4 0.105 55.8M
OBJ OBJ -0.408163265306 0.029 54.3M
MGC MG UNIT TRUST -0.537984496124 0.298 159.9M
FLC FLUENCE CORP -0.553672316384 0.395 162.0M
DW8 DAWINE -0.571428571429 0.006 2.9M
DEM DE.MEM -0.594594594595 0.15 16.2M
SKN SKIN ELEMENTS -0.7875 0.034 2.9M
Wordpress Table Plugin

Another China prospectus – but it’s not listing

Another recent prospectus on the cards is Australia and New Zealand Heath Products, a public unlisted company that released a pitch last week to raise $2 million capital selling 2.5 million shares.

The operation has developed a range of partnerships with Chinese pharmacy networks, marketing groups and online sales platforms as well as local Australian skincare brands to sell a variety of Australia and New Zealand-produced product into China.

Cash from the raise will go towards increasing the company’s inventory of Australian products and spending $200,000 on developing JD.Com and TMall stores.

As “lower tier” Chinese cities up their retail spend, it will be smaller-scale purchases like beauty that will fly off shelves, according to Morgan Stanley.

“Lower-tier city households are spending more for high-frequency, low-ticket products such as beauty supplies, makeup, snacks, beverages and online groceries,” analysts said in their May report.