Perforated non-woven faucet – Xiamen Yanjiang New Materials Co., Ltd. (hereinafter referred to as “Yanjiang Shares”) issued an announcement today (March 13) Said that in order to alleviate the tight supply situation of melt-blown non-woven fabrics under the current COVID-19 epidemic, the company urgently purchased key equipment and rushed to assemble and transform new melt-blown non-woven fabric production lines. As of March 13, 2020, the company has completed the addition of three meltblown non-woven production lines, increasing the daily production capacity from 6 tons to 12 tons.
Yanjiang Co., Ltd. stated that as the relevant production lines have been transformed and put into production as scheduled, as of today, the company has 51 customers with orders in hand. If the orders in hand can be successfully completed and sales are realized, it is expected to bring The net profit is 38-42 million yuan.
After the outbreak of the new epidemic, the demand for masks increased sharply, and the key material used to produce masks was shortage of melt-blown non-woven fabrics. Yanjiang Co., Ltd. urgently initiated a project and established a melt-blown non-woven fabric project team , the project was launched on February 1, and by February 16, the transformation of three melt-blown non-woven production lines was basically completed, and official external supply began on February 17, 2020. The theoretical production capacity of the three production lines 10 tons/day, the company continues to use one of them as an experimental line for medical-grade melt-blown non-woven fabrics for development, with an actual output of 6 tons/day.
Yanjiang Co., Ltd. said that through the efforts of the company’s R&D department, the melt-blown non-woven fabric produced by the company has been tested internally and samples have been sent to downstream mask manufacturers for testing, and its PFE value is already acceptable. Stable at more than 90%, however, the company’s medical-grade melt-blown non-woven fabrics are still in the testing stage. The test results may show that the company’s melt-blown non-woven fabrics need to continue to be improved to meet relevant technical indicators, and there is a risk of commercialization uncertainty. .
Affected by the epidemic, domestic demand for masks is large, and the mask industry continues to maintain high prosperity. Zou Runfang, an analyst at Tianfeng Securities, estimates: According to statistics from the National Bureau of Statistics, the national working population in 2018 was 8.06 billion. Based on this data and based on the relevant information from the National Bureau of Statistics, we conservatively assume that the national work resumption rate in March is 70%. Calculated based on each person using one mask per day and working 22 days per month, we can get the domestic single-day mask demand to be 5.64 billion, which is 12.412 billion domestic masks in a single month.
News released by the National Development and Reform Commission also showed that on February 29, including ordinary masks, medical masks, and medical N95 masks, the national daily output of masks was only 116 million, and the industry still has a large upside potential.
Industry insiders believe that the recent resumption of work in various industries and the movement of people have also brought huge demand for masks. As of March 6, the resumption rate of most industrial enterprises above designated size in various regions has exceeded 90% . However, small and medium-sized enterprises have weaker ability to resist risks, are more deeply affected by the epidemic, and face more difficulties in resuming work, which is significantly lower than the resumption rate of enterprises above designated size in the same period. On March 6, at the State Council’s press conference on the progress of COVID-19 prevention, control and treatment, Wang Jiangping, Vice Minister of the Ministry of Industry and Information Technology, introduced that, except for Hubei Province, the current resumption rate of small and medium-sized enterprises nationwide is 52%.
Foreignly, WHO Director-General Tedros Adhanom Ghebreyesus recently publicly stated that the global market has been severely disrupted, and the demand for personal protective equipment such as masks has been 100 times the normal level, and the price It is 20 times the normal level. South Korea, Russia, Germany and other countries have even begun to ban the export of masks. As the foreign epidemic further develops in the future, the demand for overseas masks is expected to rise rapidly.
Yang Song, a researcher at Cinda Securities, believes that melt-blown non-woven fabrics are currently the main constraint on China’s mask production capacity. In 2018, the output of melt-blown non-woven fabrics was approximately 53,500 tons, mainly used for masks. , environmental protection materials, clothing materials, battery separator materials, wiping materials and many other subdivisions. The cost of meltblown cloth production lines is high, many parts rely on imports, and it is difficult to expand the production line. At present, the main ways to expand production in the midstream segment of mask production include: original companies actively expanding production, upstream companies such as Sinopec adding new production lines, and some related companies transforming production lines (such as companies that produce materials such as automobile sound insulation cotton and switching to special filter materials for mask protection).
According to statistics from the China Industrial Textiles Industry Association, the production process of China’s non-woven fabrics (nonwoven fabrics) industry is dominated by spunbond. In 2018, the output of non-woven fabrics was approximately 5.94 million tons, of which the output of spunbond non-woven fabrics was 2.9712 million tons, accounting for 50% of the total non-woven fabric output. Spunbond non-woven fabrics are mainly used in sanitary materials, etc. field, of which the proportion of production using the melt-blown process is only 0.9%, which is 53,500 tons/year.
In Yang Song’s view, the cost of the melt-blown cloth production line is relatively high, and the melt-blown cloth production equipment is difficult to deliver in a short period of time due to the long procurement cycle of key components. Many parts rely on imports, and it is difficult to add production lines and quickly expand production in the short term. Therefore, melt-blown fabric has become one of the bottlenecks in mask production. During the epidemic, many downstream mask production companies also suspended production due to a shortage of melt-blown non-woven fabrics.
According to media reports, the price of melt-blown cloth rose from 18,000 yuan/ton before the epidemic to more than 200,000 yuan/ton by the end of February. Just a week later, the price of melt-blown cloth increased again Doubled to a maximum of 520,000/ton, the price increased by 29 times. On March 10, the State Administration for Market Regulation announced a number of typical cases of price hikes for meltblown fabrics that have been investigated and dealt with, and made it clear that it would continue to increase its crackdown. Price supervision of anti-epidemic supplies such as meltblown cloth.
Public information shows that Yanjiang Co., Ltd.�The predecessor, Xiamen Yanjiang Industry and Trade Co., Ltd., was established in 2000. After undergoing shareholding reform, it was changed into a joint-stock company in June 2015 with a registered capital of 75 million yuan. The company was listed on the GEM in June 2017. It is mainly engaged in the research and development, production and sales of surface materials for disposable sanitary products. Its current products include 3D perforated non-woven fabrics, hot air non-woven fabrics, PE perforated films, etc. The main products Used as the surface material for disposable sanitary products such as sanitary napkins, diapers and panty liners.
Financial report shows that in 2019, Yanjiang Co., Ltd. achieved total operating income of 1,036.4791 million yuan, a year-on-year increase of 35.26%; operating profit was 81.6195 million yuan, a year-on-year increase 63.31%; the total profit was 97.1255 million yuan, a year-on-year increase of 94.28%; the net profit attributable to shareholders of listed companies was 80.3092 million yuan, a year-on-year increase of 65.21%.
Yanjiang Co., Ltd. explained that the main reasons for the changes in performance during the reporting period are:
1. During the reporting period, after the layout of the previous two years, The company’s global supply chain system has been initially established and started to work. Overseas customer orders have grown rapidly, especially the establishment of Egyptian subsidiaries and American subsidiaries, allowing the company’s PE perforated films to quickly occupy markets in the Middle East, Africa, the Mediterranean and North America. , is the biggest driver of the company’s rapid growth.
2. During the reporting period, the sales and profitability of the Egyptian subsidiary reached new highs, and it has grown into an important contributor to the company’s performance; although the US subsidiary still suffered losses throughout the year, However, since the end of the second quarter, it has basically achieved monthly breakeven and then returned to profitability. The situation has continued to improve, and the annual loss has dropped significantly compared with the same period last year. The Indian subsidiary has started operations in the third quarter, and currently the release of production capacity is limited and is still at a low level. The loss status affects the group’s profit for the current period.
3. During the reporting period, the company strengthened internal control and effectively controlled production costs and operating expenses, so that the growth in performance could ultimately be translated into an increase in net profit.
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