Industry Leader&Nbsp; Quartermaster Backbone - Interview With Liu Sansheng, Chairman Of Jihua Group Co., Ltd

Jihua Group Co., Ltd. officially opened in Shanghai on August 16 negotiable securities The exchange was successfully listed. The company is a munitions and clothing enterprise growing with the birth of the people's army, and Jihua Group, which has made outstanding contributions to the cause of Chinese revolutionary liberation and construction, has officially become a member of China's A-share market. At this time, China Group landed in China's A-share capital market On the occasion, our reporter interviewed Liu Sansheng, Chairman of Jihua Group Co., Ltd.

Reporter: As a large military supplies manufacturer in China, please introduce the position of Jihua Group in the industry and the position of each main business segment in the industry?

Liu Sansheng: At the beginning of our army, Jihua The Group is carrying the glorious mission of developing and producing our military supplies. In terms of industry status, Jihua Group undertakes the production task of about 75% of the military supplies and clothing products of the Chinese army and the armed police force, and has the ability to provide full product series, full war zone coverage, and full process services.

stay Business Suits In the field of uniform, IHC Group has a certain share of the uniform market of the military police and the uniform market of the national uniform department. In terms of processing technology of conventional woven products for professional wear, Jihua Group has reached the international advanced and domestic leading level.

In the field of professional footwear, Jihua Group focuses on the development and production of various types of professional footwear and functional footwear. The functional footwear, such as puncture resistant, high temperature resistant, anti-static, waterproof and oil repellent, ranks first in China and has a certain market share. Jihua Group has successfully developed the expedition boots, space boots and space exit boots used by the astronauts of Shenzhou V, VI and VII manned spacecraft.

In the field of protective equipment, Jihua Group is a large enterprise that produced bulletproof clothing and bulletproof helmets earlier in China and has the capacity to produce a full range of military tents. The company's various types of military supplies for occupational protection, with high scientific and technological content and strong protection function, have played an important role in safeguarding national security, safeguarding national interests, rescue and disaster relief and other critical moments.

In terms of textile printing and dyeing, the company has internationally advanced textile printing and dyeing equipment, with an annual production capacity of 120 million meters of grey cloth, 36 million meters of extra wide, high count and high density grey cloth for home textile, leading the consumer market of high-end home textile products. High count and high density grey cloth has a certain share in the market; The annual production of printed and dyed color cloth is 160 million meters, and the dyeing technology of functional printed and dyed color cloth and military camouflage color cloth, such as waterproof, flame retardant, infrared ray resistant, tear resistant, has reached the first-class level in China.

In terms of leather shoes, Jihua Group has a certain share in the domestic market of special functional shoes and boots of the military and armed police forces. In recent years, the world's advanced production line of rubber double density injection leather shoes and boots has been introduced, and the shoes and boots developed and produced with double density upper injection technology are in the leading position in the military supplies market segment, and the market share has been leading for three consecutive years.

Reporter: We learned that Jihua Group has a very prominent industrial position in all business sectors. Facing the five business sectors and the military and civilian business lines, how can the company achieve synergy?

Liu Sansheng: Jihua has a long history and profound technical foundation in producing military supplies, and is known as the "steel backbone of military supplies support". In 2009, Jihua Group achieved a total revenue of more than 6.2 billion yuan for civilian products, and has basically formed a product structure of balanced development of military supplies and civilian products. Its ability to research and develop markets and resist risks has been further enhanced.

Jihua Group has a relatively complete business industry chain, which has a good strategic synchronization and business synergy effect. Each sector supports each other, and none of them is dispensable. They complement each other, so that they can better provide integrated services for customers, and customers have a higher viscosity. Moreover, most of the company's military supplies products have certain characteristics. In order to ensure the quality of downstream products, upstream products also need to have the same characteristics, so high-end collaborative development of all sectors is realized. For example, in order to make the protective professional clothes have tear resistance, abrasion resistance, good color fastness, corrosion resistance, radiation resistance, waterproof and breathable properties, special raw materials, functional dyes and chemicals as well as innovative weaving and dyeing processes are used in the upstream textile printing and dyeing links. Relying on the advantages of the industrial chain and the continuous development of synergy, the company now has high precision products across military supplies and civilian products, represented by functional professional clothing, functional field shoes and boots, functional printed and dyed fabrics, high temperature resistant environmental filter materials, and special protective equipment, and has initially formed a group of high-tech and high added value products with good market growth.

Reporter: What is the strategic significance of Jihua Group's A-share issuance for the company? What are the specific positioning and strategic objectives of Jihua Group after its listing? How?

Liu Sansheng: This A-share listing will further consolidate the leading position of Jihua in the industry and enhance the core competitiveness of Jihua Group. First of all, the A-share issuance and listing will raise funds for the development of Jihua, improve its business structure, increase investment and realize the upgrading of its industrial structure. Secondly, we will expand the follow-up financing channels of China International, and constantly optimize the capital structure and financial structure. Third, it will greatly enhance the public's awareness of Jihua Group, enhance the brand value through the capital market, and further strengthen the brand advantage of Jihua Group. Fourth, it will promote Jihua Group to further improve its corporate governance structure and establish a fully market-oriented incentive and restraint mechanism.

Centering on the "three major" development strategy established by IHC Group, the company has defined the medium and long-term development goals, "three-step" planning goals and development ideas, and has formulated practical strategic support measures around eight aspects, including market exploration, product research and development, technical transformation, product structure adjustment, brand operation, management improvement, talent team building and management team building. We believe that in the near future, a new, more powerful and global industry leader, Jihua Group, will be presented to investors.