Blue Sail Medical Crazy Hit 3 Billion 300 Million In China And Vietnam To Build 30 Billion Annual Protective Gloves Project

Lan Fan medical Limited by Share Ltd (hereinafter referred to as "Lan Fan medical") announced in June 9th that in order to meet the needs of the company's business development and meet the demand for medical and protective gloves products after the outbreak, the company's wholly owned subsidiary Lan Fan (Shanghai) Trading Co., Ltd. (hereinafter referred to as "Lan Fan (Shanghai)") is going out with Mr. Zhu Hu, a natural person. RMB 25 million yuan to set up Zibo Teng Yue Medical Technology Co., Ltd. (hereinafter referred to as "Teng Yue medical"), the main purpose of Teng Yue medical establishment is to implement the "800 million year / year PVC glove project" in Vietnam, laying the foundation for the company's development in Vietnam market, and promoting the global production process of the medical and protective glove business of the company.

LAN fan medical is a leading medical device manufacturer with complete layout of medium and low value consumables and high-value consumables. Its main business is research and development, production and sales of medical and health protective products and interventional devices for cardiovascular and cerebrovascular diseases. LAN fan medical and subsidiary LAN fan (Shanghai) has a mature medical and protective gloves business sales channels and sales network, and Mr. Zhu has many years of investment experience in Vietnam, holding Vietnam Ping An packaging, the joint venture to set up Yue Yue medical treatment, as the main body of investment in the expansion of gloves in Vietnam, the first phase will use Vietnam Ping An packaging existing resources to build PVC gloves project. Follow up will continue to expand production capacity according to the operation of the project.

LAN fan medical believes that the above investment will help the company make full use of the local geographical, labor productivity and resource advantages, lay the foundation for the company's development in the Vietnamese market, and at the same time, the company's medical and protective gloves business will further expand, explore new business opportunities, explore new growth points, and lay a solid foundation for the steady growth of the company's subsequent performance.

At the same time, based on meeting the demand for medical and protective gloves products after the outbreak and the follow-up market, lf will also invest in the construction of the "30 billion year / year health protection (Ding Jing) glove project" in Shandong Zibo and Shandong province or "all around the way". The total amount of investment is 3 billion 386 million 500 thousand yuan, which is raised by the enterprises themselves.

LAN Fan said that the "30 billion year / year health protection (Ding Jing) glove project" to be implemented is aimed at further consolidating the leading position of the company in the global medical and protective gloves industry and enhancing the company's long-term profitability. After the project is successfully completed and put into operation, the total production capacity of medical and protective gloves will reach nearly 60 billion per year. It will cover a wide range of applications including medical nitrile gloves, PVC gloves, latex gloves, surgical gloves, and catering, laboratory, electronic processing, household, civil, hairdressing, pet care and other application fields, making it the most complete glove category in the world. The company has the most reasonable layout and the most complete industrial chain.

LAN fan medical care said, according to the investment of 3 billion 386 million 500 thousand yuan, annual sales of 4 billion 490 million 520 thousand yuan accounting, static investment recovery period of 5.5 years (including construction period, the recovery period is calculated according to the normal situation; in the current fight against the new crown epidemic special period, it is expected that the sales of the project will increase significantly, the recovery period will be greatly reduced).

The total cycle of the 10 billion year / year health protection (Ding Jing) glove project in Zibo, Shandong, was initially set up for 2 years, divided into two phases. It is planned to start construction in the three quarter of 2020. It is estimated that the first phase trial operation in May 2021 and the two phase trial operation in December 2021.

The total cycle of the "20 billion year / year health protection (Ding Jing) glove project" of the national plan "outside the province" or "one belt along the way" has been initially determined for 3.5 years, and is divided into 3 phases. It is estimated that the first phase of the trial operation in November 2021 will be put into production in December 2021. It is estimated that the two phase will be put into operation in November 2022 and will be put into production in December 2022. It is estimated that the three phase will be put into trial operation in November 2023 and will be put into production in December 2023 in Shandong.

Jiang Qi, an analyst at Zhongtai securities, said nitrile gloves are the fastest growing high-end varieties of medical and protective gloves in recent years. Considering that the new crown disease may continue, the demand for nitrile glove in the global market is expected to remain strong. For many years, the blue sail medical deep cultivation glove has been the leading automation intelligent plant in the world. With the advantage of the controlling shareholder's own thermoelectric plant and the raw material supply chain, combined with the resources advantages of the subsidiary company's international resources in Southeast Asia, the company's global glove leader has a solid position.

Observation, the global new crown spread of the disease, the demand for gloves increased significantly, the blue fan medical core products PVC and Ding Jing gloves prices continued to rise, according to the market information, including PVC gloves price from about 10 U.S. dollars / box before the epidemic rose to about 50 dollars / box, Ding Jing gloves price from 20 dollars / box to about 150 U.S. dollars / box, the blue sail medical gloves performance greater flexibility.

Li Chao, a researcher at Huatai Securities, believes that the development of Vietnam's manufacturing industry has significant advantages. The main advantages include low factor cost and high industrial return rate. Tax incentives for attracting investment are obvious, and relatively stable exchange rates create stable environment for the development of export-oriented manufacturing industries. From the current perspective, Vietnam is similar to the four Asian dragons in the late twentieth Century and the rapid development of China's coastal areas after the reform and opening up.

First of all, the low factor cost of Vietnam helps enterprises to achieve higher return on investment, because the factor cost of labor and land is at a relatively low level, compared with other Southeast Asian countries, especially the labor cost is only about 1/3 of the domestic cost. This comparative advantage will provide positive support for Vietnam to undertake industrial transfer and manufacturing development.

Secondly, the Vietnamese government's policy incentives and tax incentives will help manufacturing enterprises to take root in Vietnam, and enhance their competitiveness by means of parity and tax subsidies.

Third, located in the core area of Southeast Asia, with more than 3200 km of coastline and numerous port terminals, Vietnam has outstanding external trade conditions, providing support for the export oriented manufacturing industry such as transportation and logistics.

Fourth, exchange rate stability is an important goal of the central bank's monetary policy. Under the control of the Central Bank of Vietnam, the Vietnamese shield maintains a slow downward trend. On the one hand, a stable exchange rate avoids a thin profit margin and the manufacturing industry is impacted. On the other hand, the continued depreciation will help maintain the relative export price advantage of manufactured goods.

Fifth, because of the development experience of the East Asian four small dragons and the coastal areas of China, which have the export-oriented manufacturing industry to drive the rapid economic development of the region, Vietnam's manufacturing industry has many experience for reference. Reducing and reducing the cost of trial and error will help the manufacturing industry develop faster and better.

From this point of view, Li Chao believes that Vietnam's manufacturing prospects are good, with relatively large growth space, and has a strong investment value.

Public information shows that Lan fan medical care was established in Zibo, Shandong in 2002. It mainly produces and sells medical protective products such as PVC medical gloves, nitrile gloves and medical dressings. Among them, PVC gloves are the main products of the company. It has the annual capacity of 15 billion PVC gloves, occupying 22% of the world's market share. It is the first in the world, and downstream dealers and end users include Kendall group and American medical company. Famous customers such as hospital group.

According to the financial report, in 2019, the business revenue of LAN fan medical business reached 3 billion 475 million yuan, an increase of 31% over the same period last year, and the net profit of shareholders attributable to the listed company increased by 490 million yuan, up 41.41% over the same period last year. The first quarter of 2020 achieved a profit of 897 million yuan, an increase of 7.33% over the same period last year. The net profit attributable to shareholders of listed companies was 144 million yuan, up 50.73% over the same period last year.