Softcare’s Africa Bet Pays Off as Profits Soar Ahead of Hong Kong Listing
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The China Securities Regulatory Commission approved Softcare’s plan to offer up to 148.06 million ordinary shares on the Hong Kong Stock Exchange
Softcare Ltd., a Chinese hygiene products maker that has built a commanding lead in Africa’s baby diaper market, has won regulatory approval to list its shares in Hong Kong.
The China Securities Regulatory Commission said it approved the company’s plan to offer up to 148.06 million ordinary shares on the Hong Kong Stock Exchange. Softcare focuses on emerging markets including Africa, Latin America and Central Asia.
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- Softcare Ltd., a leading Chinese hygiene producer in Africa’s diaper market, received approval to list up to 148.06 million shares in Hong Kong.
- In 2024, Softcare led Africa in baby diaper sales volume (20.3% market share) and profits rose from $18 million (2022) to $95.1 million (2024).
- The company operates 51 production lines in Africa, contrasting with declining Chinese diaper exports to the region.
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Who’s Who
- Softcare Ltd.
- Softcare Ltd. (豪悦护理) is a Chinese hygiene products maker, a leader in Africa's baby diaper market. It has received regulatory approval to list shares in Hong Kong. Softcare focuses on emerging markets and, as of 2024, held the top spot in Africa for baby diaper sales volume. The company grew its revenue to $454 million and profit to $95.1 million between 2022 and 2024 through a localization strategy that includes building factories across Africa.
- Sunda International
- Sunda International, founded in 2004 by Shen Yanchang and Yang Yanjuan, is the parent company from which Softcare Ltd. was spun off. Softcare's roots trace back to 2009 as the hygiene products trading unit of Sunda International, before becoming independent in 2022.
- China International Capital Corp.
- China International Capital Corp. is mentioned as a joint sponsor for Softcare Ltd.'s planned IPO on the Hong Kong Stock Exchange. They are sponsoring the offering along with Citic Securities Co. Ltd. and GF Securities Co. Ltd.
- Citic Securities Co. Ltd.
- Citic Securities Co. Ltd. is one of the joint sponsors for Softcare Ltd.'s planned IPO on the Hong Kong Stock Exchange. The other sponsors are China International Capital Corp. and GF Securities Co. Ltd.
- GF Securities Co. Ltd.
- GF Securities Co. Ltd. is one of the joint sponsors for Softcare Ltd.'s planned IPO on the Hong Kong Stock Exchange. Softcare, a Chinese hygiene products maker, filed its prospectus in January and again in August 2025.
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What Happened When
- 2004：
- Sunda International was founded by Shen Yanchang and Yang Yanjuan.
- 2009：
- Softcare was spun off from the hygiene products trading unit of Sunda International.
- July 2019：
- Chinese exports of baby diapers to Ghana, Nigeria, South Africa, and Tanzania peaked at 15.1% of the national total.
- 2022：
- Softcare became independent.
- Between 2022 and 2024：
- Softcare’s revenue increased from about $320 million to $454 million, and profit rose from $18 million to $95.1 million. Net margin grew from 5.7% to 20.9%.
- As of April 30, 2024：
- Softcare operated 51 production lines across eight factories in Africa, with an annual capacity of 6.3 billion diapers.
- 2024：
- Softcare ranked first in Africa by sales volume of baby diapers and sanitary napkins, with market shares of 20.3% and 15.6%, respectively. It ranked second by revenue with a 17.2% market share.
- January 2025：
- Softcare filed a prospectus with the Hong Kong Stock Exchange.
- First nine months of 2025：
- Chinese exports of baby diapers to Ghana, Nigeria, South Africa, and Tanzania accounted for just 2.8% of the national total.
- August 2025：
- Softcare filed another prospectus with the Hong Kong Stock Exchange.
- September 2025：
- The average price per ton of Chinese-exported diapers was $2,652.7, down 7.2% from a year earlier and 16.8% below the 2019 level.
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