Wo Xin Shares Become Famous Brand Suppliers Such As Nike.

PU synthetic leather, which sounds a little strange, but in fact, it can be seen everywhere in daily life. At present, more than 50% of the raw materials for interior decoration, sofa fabric, automobile interior decoration, sports shoes, sports balls and all kinds of bags are PU synthetic leather.

In the past traditional concepts, the first generation PVC synthetic leather, commonly known as "artificial leather", has been incapable of forming an incomparable impression of the dermis because of its poor performance, airtight and undurable technology.

However, with the appearance of high-end PU synthetic leather, excellent performance and technological effect have been recognized by the market. Wo Xin shares has also become the supplier behind famous brands at home and abroad, such as Nike, Adidas, new brun and Anta.

With the big name marriage, wo Xin shares are more optimistic about the future development. In the 2009 annual general meeting, Zhu Shanzhong, chairman of He Xin shares, made no secret that the company's medium and long-term development plan is to strive to become one of the most competitive PU enterprises in the world, leading the development trend of PU leather.

   　　 用技術顛覆傳統合成革概念

According to He Xin shares, PU synthetic leather products are classified into ordinary PU synthetic leather, high physical property PU synthetic leather and ultra-fine fiber PU synthetic leather.

Among them, the ordinary PU synthetic leather and the high physical property PU synthetic leather belong to the second generation of artificial leather products, and the microfiber PU synthetic leather belongs to the third generation of artificial leather products.

Over the past 10 years, the synthetic leather industry has maintained an average annual growth of 15% to 20% on average. At present, China has become a major producer and user of synthetic leather in the world.

The development speed of PU synthetic leather is far more than the PVC artificial leather which is the first generation of artificial leather products. The output of PU synthetic leather has increased from 115 million meters in 2000 to 1 billion 60 million meters in 2008, which has increased by more than 8 times.

In regard to the superfine fiber PU synthetic leather, which represents the development trend of the synthetic leather industry in the world today, Japan Cola has always been the leader in the world. Its production technology is world class, and the superfine fiber synthetic leather is the top product.

Wo Xin shares, as a leading enterprise in China's synthetic leather industry, has carried out long-term cooperative research with Japan Cola company on the production technology of microfiber synthetic leather, and has jointly invested in the establishment of a joint venture company -- Wo Xin Cola Li super fiber (Jiaxing) Co., Ltd.

At present, the company holds Wo Xin Cola Li, the subsidiary has the most advanced technology in the field of microfiber PU synthetic leather.

Wo Xin Cola Li's company has achieved the cooperation with the Japanese Cola company in the research and production of microfiber PU synthetic leather, and shared the technical resources, and then occupied the high-end position in the field of microfiber PU synthetic leather, laying a solid foundation for the company's product upgrading.

At present, wo Xin shares occupy 13% of the market share of China's high-end PU synthetic leather market, and have the annual production capacity of PU synthetic leather 23 million 500 thousand meters.

According to the data of the trade association, in 2008, the production of PU synthetic leather was 1 billion 60 million meters, the PU synthetic leather output of the company was 24 million 387 thousand and 300 meters, and the market share was about 2.30%. The output of the synthetic leather and superfine fiber PU synthetic leather of the national high quality PU amounted to about 68 million 500 thousand meters, and the output of the high quality PU synthetic leather and superfine fiber PU synthetic leather was 8 million 432 thousand and 300 meters, and the market share was about 12.31%.

Although it has become the industry leader, He Xin shares still yearn for expanding market share.

In the prospectus of the company, the target of "increasing the share of high-end PU leather market every year" is planned in.

In this regard, Shen Yunping, general manager of He Xin shares, said that the company is confident in the completion of this year's goal. It looks like a relatively ordinary PU synthetic leather, but there are many places to use, such as bags, furniture and so on. The growth of market demand in the future can still be guaranteed.

Dissolving the adverse effects of rising raw materials

In 2009, Hsin Hsin shares handed in a satisfactory answer in the capital market. Its operating income was 1 billion 103 million, and its net profit was 122 million, an increase of 75% over the same period last year, far exceeding market expectations.

The annual report shows that the gross profit margins of core products, PU leather and microfiber PU leather, exceed the 2008. Due to the decline of raw material prices, the price of microfiber PU leather products has dropped, and the price of high quality PU leather has basically remained unchanged. However, the price of raw materials has dropped by more than 30%, and the gross profit margin of the company's products has improved, of which the microfiber PU leather has increased by 13 percentage points.

The company's consolidated gross profit margin increased from 17% in 2008 to 24% in 2009, which is the main reason for the company's performance exceeding expectations.

In addition, the decrease in the financial cost rate and the actual tax rate also contribute to the performance.

The company has a sober understanding of whether or not the gross margin will exceed expectations in 2010.

Especially in the context of the rise in the price of oil and the price of raw materials, how to digest the adverse impact of rising costs on profitability is the focus of investors' attention.

"Gross margins continue to rise in 2010, which I think is unlikely.

In 2009, the gross profit margin of the company's products was at the highest level in history. This opportunity is very rare.

Shen Yunping, general manager of He Xin shares, bluntly said, "the cost of raw materials will rise correspondingly this year, but at the same time, the company will raise the price to respond to the impact of the price of raw materials, but there will be some lag. The company will make use of orders and sales revenue to enhance the adverse impact of the rising cost of digestion on profitability."

Shen Yunping said that even if the gross profit margin declined this year, we would strive to maintain growth in total profits through the cost savings and product mix adjustment.

　　    積極拓展車用革等有潛力領域

"In fact, the bottleneck restricting the future development of Wo Xin is insufficient capacity."

In this regard, Zhu Shanzhong, chairman of He Xin shares, revealed that the company has focused its focus on improving production efficiency and market share of high-end products in 2010 to enhance profitability.

Previously, the prospectus of Wo Xin shares showed that according to the sales target of all the equity investment projects released after listing, by 2011, the company's sales volume is expected to reach 2 billion yuan.

The launch of the initial fund-raising fund clearly reflects the future development direction of He Xin shares. The two main projects of Fujian Hexin high physical properties PU synthetic leather and Hexin Cola super fine fiber PU synthetic leather are all high-end products. The implementation of the project can not only optimize the product structure of the company, but also make the new product research and development closely follow the middle and high-end market in the synthetic leather field, and further enhance the market share of the company's high-end products.

The new capacity and R & D capabilities will effectively guarantee and enhance the company's leading position in the industry, and further enhance the core competitiveness of the company.

And the fund-raising project is fully released. It will add 12 million meters per year on the basis of the high physical properties of PU synthetic leather at the current capacity of 8 million meters / year, and the production capacity will be increased by 150%. The superfine fiber PU synthetic leather will add 2 million 800 thousand meters per year on the basis of the current production capacity of 2 million meters per year, and the capacity expansion will be 140%.

According to the company, at present, He Xin Li Cola project has reached production, and Fujian Wo Xin project is under construction.

In Zhu Shanzhong's view, China's current industry development trend has shifted from clothing and food to health, housing, pit and pfer.

The elimination of backward production capacity in tanneries and other industries has entered the countdown. It has also opened up space for leading industry leaders with advanced manufacturing technology to expand their market share.

Therefore, in line with the development trend of social needs, the development of automotive PU leather instead of automotive products dermis and PVC will have huge market opportunities.

In 2009, wo Xin shares began to enter the R & D and marketing of PU leather for automobile, and presided over and participated in the formulation of national standards for the safety technical conditions of polyurethane synthetic leather for automobiles, and took the lead in developing a new generation of environmentally-friendly automotive leather.

The company said it would strive to get permits for entering the automotive leather industry in 2010, making car leather a new bright spot for the company, and further expanding market demand for upholstery leather and ball leather.

Wo Xin's vision is more than that. The initial oversubscription makes the company intend to open up the industry chain and undertake some mergers and acquisitions.

"In addition to fund-raising reports, we are also striving to find projects that are going up in the main business chain of the company."

Shen Yunping, general manager of He Xin shares, disclosed that he intends to purchase the raw materials company related to Wo Xin's main business in the future.

He believes that wo Xin's current raise funds plus bank credit lines, if we want to participate in some very scattered projects, human resources can not keep up, we might as well concentrate our resources to find a relatively concentrated, a certain scale of projects.