Established in 1992, Combine Will International is a leading Original Equipment Manufacturer (OEM) specialising in corporate premiums, toys and consumer products.
Combine Will serves diverse international customers across Asia, Europe and North America. In China, the group has broadened its customer base by partnering with one of the largest premium goods solution providers, focusing on both Chinese and international intellectual property (IP) related products. It is also in discussions with globally renowned brands in the toy and theme park sectors to further support expansion efforts.
To uphold quality control and ensure supply chain resilience, it has identified suppliers across Indonesia, Taiwan, South Korea and Vietnam.
Headquartered in Hong Kong, Combine Will has 5 manufacturing plants in China and Indonesia – employing over 10,000 employees. As a result of its sustainable manufacturing practices, it uses 35% green raw materials today – and committed to raise its output of green products to 40% in 2024.
Here are 5 things to know about Combine Will International.
#1 Does The Group Have Any Expansion Or Acquisition Plans And What Are The Strategies For It?
In 2023, Combine Will launched its first plush toy production line in Sragen, Indonesia, through a partnership with an experienced manufacturer. To support this, we acquired 200,000 more square meters in Indonesia, doubling our capacity soon.
In Q3 2024, we converted a warehouse into spraying workshops and installed over 450 automated decoration machines. Two additional warehouses, covering over 15,000 square meters, will be operational by Q4 2024. Ongoing construction projects include new plush, die-casting, and plastic production facilities totaling about 70,000 square meters, set to complete by Q2 2025.
This strategic diversification into plush toy manufacturing was driven by rising global demand and the Group’s commitment to expand our product range.
On the back of the new plush toy operations, revenue grew by 30.0% in 1H FY2024. Our gross profit margin also improved to 11.3%, up from 10.9% in 1H FY2023. Consequently, operating profit increased by 9.6% to HK$40.1 million.
Besides plush toy production, the Group has established paper production lines, reflecting our dedication to sustainability by utilising green materials, including green polyethylene, recycled PET, aluminium, and Forest Stewardship Council certified paper. These materials are integrated into our paper and hybrid toy products. Presently, the Group owns five paper production lines across Sragen, Indonesia and Heyuan, China.
#2 What Impact Would A Change In Interest Rate Have On The Group’s Businesses, And How Is It Managing This Risk?
With a strong balance sheet and cash balance of HK$112.1 million in 1H2024, the Group has secured an additional HK$40 million banking facility in Singapore to support future business development. The strategic pivot positions Singapore as Combine Will’s regional business hub in Southeast Asia, enhancing its ability to serve customers efficiently and capitalise on potential new growth opportunities.
Additionally, the Group’s green initiatives and milestones have resulted in securing more attractive financing arrangements with financial institutions. Nevertheless, the Group will continue to invest strategically in production automation and factory digitalisation to stay aligned with market trends and bolster long-term business sustainability. Simultaneously, we aim to enhance operational efficiency, reduce costs, and improve product quality to add value to our stakeholders.
#3 How Does Combine Will Remain Competitive Against Other Original Design Manufacturers (ODM) And Original Equipment Manufacturers (OEM)?
Our competitive advantage is rooted in our customer-driven philosophy, emphasising quality management and using sustainable materials. This strategy allows us to satisfy customer expectations for both product quality and environmental stewardship.
To stay competitive and ensure sustainability, we will keep investing in production automation and digitalising our factories. Using advanced technologies, we aim to boost efficiency, reduce costs, and improve product quality.
These efforts will enable us to stay competitive in a changing industry landscape and underscore our dedication to sustainable growth by optimising resource utilisation and minimising environmental impact.
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#4 What Are Some Risks In This Business And How Is Combine Will Mitigating Them?
Our business faces risks such as supply chain disruptions and meeting the needs of our international clients. Expanding production has complicated our supply chain, influenced by geopolitical tensions.
With growing production, securing raw materials is tougher. Our supply chain team is working to find new sources that meet our clients’ high standards, collaborating with universities and renowned enterprises for diverse sourcing options.
To meet the unique demands of our global clientele, we are hiring top talent, automating and digitalising production processes, and continuously improving department cooperation. These steps aim to enhance production efficiency and better serve our clients.
We prioritise product safety by maintaining strict quality control during manufacturing. We are committed to a customer safety-first mission by delivering safe, high-quality products through an effective quality management system. We also foster integrity and transparency by providing ethics training, ensuring adherence to our ethical standards.
#5 Sustainability And ESG Have Increasingly Been A Key Focus, How Is Your Company Committed Towards Sustainability?
We have embedded Diversity, Equity, and Inclusion (DE&I) into our core business practices, focusing on three critical drivers to deliver sustainable value to our stakeholders.
- Compliance and Risk Management: Strong compliance with customer and regulatory standards, effectively managing risks and supports ethical and sustainable operations.
- Employer of Choice: Inclusive work culture to attract and retain top talent, valuing diverse perspectives to boost employee satisfaction and business growth.
- Innovation and Competitive Advantage: Foster innovation, enhance industry competitiveness and create sustainable solutions for our customers’ and society’s needs.
We are dedicated to advancing our ESG agenda by enhancing innovation with over USD$1 million dedicated to research & development, promoting resource efficiency and reducing our environmental footprint, and improving governance standards.
The Group aims for carbon neutrality through a comprehensive strategy, including the establishment of a Sustainable Operations Committee to continuously manage growth sustainably.
We target a minimum 15% reduction in carbon emissions by 2026, 35% by 2035, and full carbon neutrality by 2050. Our focus on sustainability, especially in materials application and green investments, continues to yield positive results.
We have implemented a carbon footprint tracking and reporting system that monitors all subsidiary emissions and obtained third-party verification for our GHG emissions. To support cleaner production, we use green electricity from renewable sources, currently accounting for 16.46% of our total usage. In 2023, we purchased 5,542 MWh of green electricity, cutting approximately 3,161 tonnes of greenhouse gas emissions.
Editor’s Note: Some answers for this article were extracted from the SGX 10 in 10 series published on 29 October 2024 and republished with permission. You can read more about Combine Will International (SGX:N0Z) on the SGX website.
Read other featured companies from SGX’s 10 in 10 series on the DollarsAndSense website.
The post 5 Things To Know About Combine Will International (SGX: N0Z), A Leading OEM For Consumer Products, Toys, And Fast-Food Chains appeared first on DollarsAndSense.sg.
