Kang Zhi Pharmaceutical Smashed 370 Million To Build 30 Masks And Protective Clothing Production Lines In Hainan, And Put Into Operation In 2022.

Kangzhi pharmaceutical Limited by Share Ltd (hereinafter referred to as "Kangzhi pharmaceutical") announced in the evening of March 17th that the company intends to invest in the construction of "Kangzhi Hainan (International) medical protection production base" project. The investment in the construction project is estimated to be 370 million yuan, of which: the construction cost is 298 million yuan, the construction cost is 21 million 890 thousand yuan, the preparatory fee is 17 million 920 thousand yuan, and the working capital is 15 million yuan. Construction period interest 1691 yuan. The project funds are raised by the company itself. According to the current situation, the company plans to apply for a bank loan of 290 million yuan, and other self raised funds of 80 million 360 thousand yuan.


The construction period of the above projects is 24 months, and the expected completion time is March 2022.


The above projects have been filed for the record of the Haikou national hi tech Industrial Development Zone Management Committee, and have been certified by Hainan provincial enterprise investment projects. The project is located in No. 6, No. three drug Valley, No. 6, drug Valley Industrial Park, Haikou national hi tech Industrial Development Zone, Haikou, Hainan Province, with a total area of 127 mu. It is now being renovated and renovated by using existing factories, warehouses and other facilities, and the construction of the plant area (third phase project) will be carried out.


The above project is newly built 1# production plant with a construction area of 29924.68. The overhead layer does not contain 830.4 cubic meters of floor space. The construction area of the new 2# production plant is 24038.36. The overhead layer does not contain a building area of 724.06. The modified penicillin preparation workshop is 2520 gel for the disinfection gel workshop, and it is intended to demolish the original plant building area 6277.42. Reform masks and other medical protective workshop 800.


The new construction lines are:


1. Medical mask workshop: introduce 10 automatic mask production lines, including disposable medical masks, medical surgical masks, N95 respirators, multi-functional respirators for children, etc., with capacity of 600 thousand days / day.


2, medical isolation clothing workshop: we plan to put 20 protective clothing production lines into operation, with 400 production units per day.


3, medical disinfection products workshop: portable disinfection and disinfection gel production line 2, 15 million /; tubular packaging of 1 sterile, gel line 1, 3 million / 1; 1 wet towel production line; 1 antibacterial foam hand washing liquid production line.


4. Disposable medical package material items: we plan to put into operation 40 production lines of disposable medical package materials, including 20 kinds of first-aid packages, care packs and so on, with a design capacity of 50 million bags / years.


Kang Zhi pharmaceutical indicated that the production income of medical protective articles was calculated daily according to the normal scale of project scale. The production load rate was 80%, and the production load of disposable package consumables was about 72%, and the annual production was 260 days. It is estimated that the annual production and sale of disposable medical disposable materials, disposable disposable medical masks, flat surgical surgical masks, N95 respirators, protective clothing, disposable disposable gel, bubble hand washing liquid and wet wipes will be about 482 million 120 thousand yuan (excluding VAT), and the profit after tax is 64 million 790 thousand yuan.


It is predicted that the internal rate of return will be 24.36% after the investment tax, and the dynamic investment recovery period will be 7.17 years (including construction period), all of which meet the requirements of the established industry benchmark value, with better economic and investment results, stronger profitability, lower asset liability ratio, stronger solvency and better financial conditions in each year.


Kang Zhi pharmaceutical said that in order to build a production base for high-quality medical consumables and meet the needs of production and strategic reserves in Hainan, and to enter the international market, the company, as the founder of Hainan's first mask production line, intends to make use of its development opportunities on the basis of existing venues in Hainan Haikou.


Due to the location characteristics of Hainan, far away from the mainland, less transportation channels and weak transport capacity, it is affected by typhoons and other climates. The lack of industrial chains in Hainan's local protective products leads to the production capacity, all kinds of accessories and raw materials must rely on external forces. In the face of the severe situation of pneumonia caused by the new coronavirus infection, all kinds of relief materials on the island are more laborious. To this end, Hainan needs a better consumable industrial system with disposable consumables. Therefore, as the founder of Hainan's first mask production line, the company set up a production base for medical protective products to ensure the local emergency demand in Hainan.


At the same time, the company will take advantage of Hainan's free trade port's import and export tax policy and other advantages to import high-quality medical consumables from the world into production, processing and innovation. After satisfying the needs of production and strategic storage in Hainan Island, it will enable high-quality medical consumables to enter the international market, create good corporate and product image, and improve the profitability of the company.


Chuan Chun securities analyst Bai Jun Tian said earlier that under the outbreak of the new coronavirus, masks became essential items for medical workers and ordinary people to work and travel, and at least 2 masks were needed every day under the 8 hour working system. In view of the fact that domestic epidemic still exists, overseas epidemic has become more serious in countries such as Korea, Italy and Japan, and the number of overseas confirmed cases has been increasing. In the short term, the global masks demand is still more than 10 times the gap. Under the legitimate profit margin, the mask industry chain has investment opportunities for domestic use and export.


However, it is also necessary to see that the recent market has a high degree of concern about the mask industry chain, but most of the market thinks that masks are short term demand. After the epidemic is retreated, excess capacity will overturn the industry, and Xiao Yongsheng believes that the increase in capacity or the transfer of products during the epidemic season are mostly self employment or government assistance in the special period, and lack of relevant medical mask production qualification. Later capacity will be eliminated. In addition, after the epidemic, the strategic reserve demand of the state, hospitals, local governments, enterprises and families, and the long-term rigid demand of the mask masked under the trend of high incidence of infectious diseases.


According to public information, Kang Zhi pharmaceutical has been focusing on children's medicine since its establishment, and is mainly engaged in the research, production and sale of children's medicine. At present, the company has nearly 30 kinds of children's medicines. The products of children's medicines basically cover six kinds of Western medicines and Chinese patent medicines, such as antipyretic analgesics, colds, antibiotics, respiratory systems, eliminating food and starting and nourishment.


Kang Zhi pharmaceutical accurately positioned the market in China's huge third terminal child medication market, and is one of the earliest professional manufacturers involved in the third terminal market in China. According to the characteristics of the third terminal market, after years of exploration and summary, the company has redesigned and configured the interests and functions of various links in the industrial chain, and launched a new marketing mode suitable for the third terminal market, namely, specialized cooperative agency mode.


According to the financial report, in 2019, the total revenue of Kang Zhi pharmaceutical business reached 1 billion 8 million yuan, up 14.22% compared with the same period last year. Operating profit -451.75 million yuan, a year-on-year decrease of 113.24%; total profit -370.24 million yuan, down 110.84% compared with the same period last year; net profit attributable to shareholders of listed companies was -2259.25 yuan, down 269.03% from the same rate.