The Chinese Top 500, 770 Thousand, Bought A Full-Automatic Production Line For Masks, 100 Thousand Pieces Per Day.

Jiangsu Hui Hong International Group Limited by Share Ltd (hereinafter referred to as "Hong Hong Group") issued an announcement in March 5th, saying that in order to complete the material procurement support task of Jiangsu anti epidemic material procurement group, the company's wholly-owned subsidiary, Jiangsu Hui Hong International Group Import and export limited company (hereinafter referred to as "Hong Hong medicine") purchased a mask automatically with its own funds of 770 thousand yuan. Production line, and Wuxi Yulu Medical Devices Co., Ltd. (hereinafter referred to as "Wuxi Yu Shou") to cooperate in the production of disposable medical masks.


Wuxi Yu Shou has already obtained the Jiangsu Provincial Drug Administration's "export medical protective clothing and mask for export to Jiangsu for inspection and approval of emergency use of domestic epidemic prevention and control." the date of filing was January 29, 2020, and it was valid until April 28, 2020. The Hong Kong Medical Co operation with Wuxi Yu Shou, which was supplied by Hui Hong medicine and produced by Wuxi Yu Shou mask. The venue is provided by Wuxi Yu Shou and equipped with equipment operators. The capacity is 100 thousand masks of Nissan.


The two sides signed a contract in March 2, 2020 and agreed that after purchasing, the first 1 million pieces of masks purchased from the production line were obtained by Hui Hong medicine and the delivery was completed before March 17, 2020. After that, the supply price of masks during the cooperation period will be adjusted accordingly according to the changes in the purchase price of the raw material melted cloth, giving Wuxi Hui medicine a preferential reduction in accordance with the mask market purchase price, and making a definite agreement in the specific procurement contract signed by both parties, with a cooperation period of three years.


During the epidemic prevention and control period, the mask produced by the Hong Kong Group will give priority to the local government's epidemic prevention guarantee, and the rest of the market will be sold to the company's mask export and domestic market.


Public information shows that the Hong Kong Group is a state-controlled large enterprise group in Jiangsu province. It is a top 500 Chinese enterprise, a top 100 Chinese foreign trade enterprise and the top 200 Chinese service enterprises. The company actively builds up the supply chain operation, investment and financial business segments, focuses on the layout of environmental protection business, and is committed to becoming a modern supply chain integration service combining industry with finance and transnational operation. Among them, supply chain includes textile and garment supply chain, fresh food supply chain, renewable resource supply chain, pulp and paper business supply chain, green sheet supply chain.


The supply chain of textile and apparel is mainly managed by the subsidiary company, Zhonghong, Hong Hong, Zhongjia and wholly-owned subsidiaries. It is mainly engaged in self export and cooperative export of household textiles, knitted garments and woven garments. The textile and garment sector subsidiary is deeply engaged in traditional business. Its business cooperation involves spinning, weaving, printing and dyeing, embroidery, finished products, accessories and other industrial chains. The business covers orders, order processing, production quality management, logistics and transportation, and making foreign exchange. We should strengthen the integration of the upstream and downstream industries chain, continuously promote the R & D design capability of new products, and promote the upgrading of product quality. Each subsidiary will give full play to its leading role in the industrial design center and continuously increase the proportion of ODM and OBM business. We must adhere to the diversified development path, speed up the layout of the "going out" project, promote the construction of production base in Southeast Asia, and further enhance the quality of the main business supply chain.


The Hong Kong jiajiahe Hui Hong Zhong brocade has listed hundreds of textile and garment enterprises across the country, all of which own the provincial textile and garment industrial design center.


According to the financial report, in 2018, the Hong Kong group realized its operating income of 38 billion 983 million yuan, an increase of 5.93% over the same period last year, with a total profit of 1 billion 779 million 260 thousand yuan, an increase of 52.18% over the previous year, a net profit of 1 billion 328 million 480 thousand yuan, an increase of 52.90% over the previous year, a net profit of 1 billion 201 million 570 thousand yuan attributable to shareholders of listed companies, an increase of 63.08% over the same period, and 34 net cash flow from operating activities. 5 million 460 thousand yuan, down 67.56% compared with the same period last year. At the end of the reporting period, the net assets attributable to shareholders of listed companies were 5 billion 364 million yuan, down 27.04% from the same period last year.


In the first three quarters of 2019, the Hong Kong group realized its operating income of 25 billion 100 million yuan, down 11.57% from the same period last year, and the net profit attributable to shareholders of listed companies was 192 million yuan, down 80.4% from the same period last year. Basic earnings per share of 0.09 yuan.


The Hong Kong Group has issued a performance forecast that the net profit attributable to shareholders of the listed companies in 2019 will be reduced by 720 million yuan to 961 million yuan compared with the same period last year (1 billion 201 million yuan), down 60% to 80% compared with the same period last year.


For the reasons for the change in performance, the company explained that in 2018, the company actively revitalize the stock of financial assets according to the strategic transformation needs, adjust and optimize the asset structure, hold changes in the fair value of trading financial assets, and the total investment income from the disposal of financial assets including Huatai Securities totalling 2 billion 897 million yuan. In 2019, the company's disposal of financial assets was less, the value of changes in fair value arising from trading financial assets and the total investment income obtained from disposing of financial assets amounted to about 620 million yuan, resulting in a sharp decline in net profit attributable to shareholders of Listed Companies in 2019.