Crazy Buying 108 Masks Machine Search For 2 Million 500 Thousand Special Day Products, 4 Melted Spray Production Line Will Arrive Soon.

In May 22nd, the Limited by Share Ltd of the special group (Limited by Share Ltd) announced that as of May 21, 2020, the wholly-owned subsidiary of the company, medical supplies company, actually ordered 108 sets of cover machines, of which 47 were flat mask machines (including 6 mouthpieces for children, 41 for disposable masks and 41 for mask masks), and 61 for face masks. It has arrived before and has been put into production for 82 units, including 36 flat respirator machines (including 6 children's mask machines, 30 disposable medical masks machines (compatible with child masks), and 46 KN95 respirator machines.

At present, the daily production of masks for medical supplies companies is 250-300 million, and the market sales are mainly government departments and domestic markets, and have not yet been exported.

At present, we have ordered 4 melted spray production lines and are expected to arrive in late May 2020. After the equipment is delivered, the company will inject capital into the medical supplies company in the form of physical assets. After installation and commissioning, the company will gradually invest in the production of melted spray cloth.

According to the guidelines issued by the Guangdong provincial drug administration on the application of emergency examination and approval for the application of emergency filing products, the written application of disposable medical masks for emergency examination and approval by medical supplies companies was approved by the Guangdong Provincial Drug Administration (hereinafter referred to as the "provincial drug administration") on 27 April 2020, and second medical devices registration certificates were issued in April 30th. In May 15th, the medical supplies company has completed the on-site verification of the second types of medical device registration quality management system in Guangdong and submitted the rectification report, which is awaiting the approval of the provincial drug administration and Issuing the medical device registration certificate.

The disposable medical masks for medical supplies companies issued a compliance statement (DOC) in accordance with the European Union Medical Device Directive 93/42/EEC in April 29th, and the designated EU authorized representative (SUNGOEuropeB.V.) has completed registration in accordance with the law of the competent authorities of the European Union member states (NL-CA002-2020-50894) in accordance with the law (DOC). At present, the medical supplies company has submitted an application to the Chinese medicine and health products import and Export Chamber of Commerce to enter the list of medical materials manufacturing enterprises that have obtained the certification or registration of foreign countries (i.e. the white list of medical masks).

KN95, a medical supplies company, has applied for EN149:2001+A1:2009 testing and related certification to the standard Technology Service Company Limited (SGS) on 28 April and has received an acceptance receipt. According to the guidelines issued by the State Administration of market supervision and Quarantine (MFA) on export information for export of masks and other preventive products (first edition, second edition and three Edition), SGS belongs to the certification body with the qualification of personal protective masks in the European Union announcements, and is in line with export requirements.

Earlier, in February 12th, the company announced that it had invested 200 million yuan to invest in the establishment of a wholly owned subsidiary medical supplies company, which covers medical devices such as medical masks, protective clothing and other related medical products. It has been revealed that the one hundred thousand level purification plant of the medical supplies company has been renovated and has been put into production and use since February 16th. After signing a sales contract with a number of manufacturers, a total of 27 masks manufacturing machines were ordered, and 15 units were delivered to medical supplies companies. 4 of them had been put into medical masks. The rest of the mask makers were being debugged and put into production.

Yao Jiajie, an analyst at Huaxin securities, has estimated that the average daily production capacity of each mask masks is about 4-5. Therefore, once the 27 mask makers are successfully put into production, the production capacity will be around 1 million -130 per 10000 days. If the gross profit rate of the general medical mask is around 35%, the operating profit of the medical masks can reach 150 million to 200 million yuan this year.

Yao Jiajie said that due to changes in the international economic situation and the decline in overall industry demand, inventories of inventories rose sharply, from 1 billion 900 million in 2017 to 3 billion 900 million in the three quarterly report in 2019, almost doubled, while the amount of liquid assets in the company did not change much. The backlog of inventory has dragged down the supply chain business of the company, and the sharp decline in inventory turnover in 2019 shows that the company's operating capacity is declining. In the first half of 2020, the epidemic will continue to pressure the leisure apparel supply chain business, but the medical supplies business can digest some stock of raw materials, thereby reducing the inventory level to a healthy level.

In addition, with the spread of the new crown epidemic abroad, the global retail trade has been greatly affected. Despite the growing scale of online retailing and the negative impact of the global economic slowdown on the disposable income of consumers, Yao Jiajie expects that the overall order of textile and garment enterprises will decline, and the upstream supply chain will also be affected. At present, the price of raw materials in the upstream is stable and the demand for falling demand is decreasing.

Public information shows that the search started with the design and sale of the "frontline" youth casual wear. Since 2015, it has been carrying out strategic transformation since 2015. It has entered the supply chain management and brand management business, especially the supply chain management business. In recent years, it has been developing rapidly, and directly led to the total revenue scale spanning from 1 billion 983 million yuan in 2015 to 18 billion 494 million yuan in 2018, which has increased 9 times in the past two years. Many,

According to the financial report, in the first quarter of 2020, the search company achieved 1 billion 350 million yuan in operating income, down 57.92% compared with the same period last year, and the net profit attributable to shareholders of listed companies was -7403 million yuan, down 169.32% compared with the same period last year. Basic earnings per share -0.02 yuan.

Everbright Securities researcher Li Jie said that since the three quarter of 2018, search for special business income continued to decline year by year, mainly under the background of terminal retail weakness. Sales of special operations such as supply chain management, brand management and brand clothing were all under pressure. Supply chain management and brand management subsidiary income decreased by 29.37% in 2019, down 7.43%, and operating income accounted for respectively. For 84% and 15%, net profit decreased by 70.38% and 50% respectively. According to the category, the income of materials and garments in 2019 accounted for 82% and 11% respectively, down 32.20% and 2.39% respectively.

From the quarterly performance, the Shaoxing holding company, a large holding subsidiary, lost its controlling stake and shareholdings from 51% to 49% in October 2018. It turned to be a joint venture. The first half of the year was 2019. The decline in income and profit was relatively large. In the second half of 2019, the elimination of the table effect and the decline in the year-on-year income were improved, but in the first quarter of 2020, the income from the epidemic dropped again.

Li Jie judged that in the short term, the pressure to search for special performance remains, and the textile and garment industry (especially the upstream textile manufacturing industry where the company's supply chain management business is located) is more affected by demand from home and abroad, and the price of cotton and cotton yarn continues to fall, which may have adverse effects on the supply chain management and other industrial chain, and turnover and cash flow. There is pressure on the surface. In addition, the weak domestic consumption environment has also affected the company's brand clothing business. In addition, he has invested 200 million yuan to set up medical products subsidiaries and expand the production of medical masks and protective clothing. The demand is strong under the short-term epidemic situation, and it is expected to contribute to the company's performance. In the future, it will form two main industries of textile clothing and medical supplies, but taking into account the fact that the epidemic situation at home and abroad is not yet over, the macro-economy will continue. The recovery of the boom in textile and garment industry is still uncertain. The medical supplies business is affected by the epidemic, and the domestic and foreign markets fluctuate in a short time.