Melt Spray Cloth Is Too Hot! Last Year, Net Profit Only 4 Million 850 Thousand Of Xinlong Holdings Made 60 Million In The First Quarter.

Xinlong holding (Group) Limited by Share Ltd, the important raw material manufacturer of protective clothing and masks, disclosed the first quarter earnings announcement in April 14th. The company expects to achieve net profit of 40 million yuan -6000 million yuan for the listed companies in the first quarter, up 10.28 times -15.92 times compared with the same period last year.

For the performance changes in the reporting period, Xinlong holdings explained that: the main department affected by the epidemic, the production of medical, health protection products, raw materials, non-woven fabric market demand increased, as the focus of the epidemic prevention and control to protect enterprises, the company worked overtime to organize the production of the epidemic situation needed raw materials for protective materials, production and sales increased significantly.

This evening, Xinlong holdings released the 2019 performance bulletin, which showed that the company achieved operating income of 733 million 634 thousand yuan during the reporting period, a slight decrease of 1.23% over the previous year, and a net profit attributable to shareholders of listed companies was 4 million 851 thousand and 600 yuan, an increase of 104.46% over the previous year.

Xinlong holding said that during the reporting period, the company focused further on its main business, strengthened the operation and management of enterprises in the three production bases of Hainan, Hunan and Hubei, and worked hard to improve quality, increase revenue and reduce costs.

According to public information, Xinlong holdings is the first manufacturer of spunlaced nonwovens in China. The main business of the company is the development, manufacture and sale of spunlaced, spunbonded and melt blown nonwovens (non-woven fabrics), processing, research and development, and sales of non-woven medical and health products.

Xinlong holdings currently has more than 10 production lines, including spunlace, SMS, melted spray, dyeing and finishing, and non-woven deep processing, and has speeded up the construction of Hunan Xinlong annual production line of 5000 tons SSS production line. At present, the project has been installed and entered the commissioning and acceptance stage.

During the epidemic period, the medical protective material production line of Hainan, Hubei and Hunan bases at Xinlong holding company has not ceased production during the Spring Festival holiday, and has been producing medical protective materials. Previously, two melted shotcrete production lines of the company produced about 4000000 medical masks for downstream production, and the company produced Nissan SMS non-woven fabrics for about 150 thousand sets of downstream protective clothing. At present, the company's melt blown products are mainly exported to Europe and Southeast Asian countries, Spunlaced products are mainly exported to Europe, Australia, Japan, Southeast Asia and the United States and other countries and regions.

Wang Qiang, an analyst with China Merchants Securities, said that the volume of melt blown non-woven fabric was very small in the whole nonwovens structure. In 2019, the capacity of China's meltblown fabric was 8-10 tons, while the domestic melt spraying cloth output was only 55 thousand tons (less than 150 tons per day), and accounted for only 0.9% of the total non-woven fabrics, and only about 10 enterprises could produce mass melt blown materials at home. It is not only used for producing masks, but also for environmental protection materials, clothing materials, battery separator materials, and wiping materials.

From the normal year, 5 billion masks in 2019 showed that even if all the medical masks needed to melt spray cloth, their annual consumption of meltblown fabric was 5000 tons (about 14 tonnes per day), that is to say, at normal times, melt blown fabrics accounted for only 0.9% of non-woven fabrics, while medical masks were only about 10% of melt blown fabrics, and the volume of melt blown non-woven fabrics in the whole non-woven fabric was very small. Wei is indeed a niche industry.

Data show that in 2019, China's melt blown fabric production capacity 8~10 million tons, and domestic melt spraying cloth production is only 55 thousand tons, that is to say, there are about 45 thousand tons of annual production capacity without full production released. In Wang Qiang's view, from last year's production of 5 billion masks, the amount of melted cloth used for masks was only 5000 tons per year, less than 10% of last year's consumption. Therefore, the fastest way to increase the use of melted cloth for masks is to increase the load and other transfer products. After all, the enterprises that have the capacity of "fire god mountain" to build new capacity of melt blown cloth are also like Sinopec's super strength enterprise.

Wang Qiang had previously predicted that if the output of 50 thousand tons of production and increased load was released, it would be converted to about 140 tons per day, plus the acceleration of some enterprises' overload and Sinopec and other powerful enterprises, which could support China's daily mask production of 1.8-2 million.

But Wang Qiang said frankly, the bottleneck of masks production continues to go up to the top is still the middle part of the medical melted spray cloth. The short term respirable mask can be estimated at 1.6-2 billion. The new melt blown fabric has a long distance to save water from the near fire, and the non medical melted spray cloth and some spunbonded nonwoven fabrics that are closest to the conversion conditions will be the main incremental production capacity of the medical melt blown fabric in the next 2 months. With the gradual resumption of the third industry and the gradual promotion of school resumption, it is still necessary to maintain the respirator for a period of time. This may also continue to increase the daily demand of mask. In addition, the low risk area can relax the mask appropriately in the low risk scenario. The mask demand will be offset to a certain extent in this way. The peak demand of mask daily demand may be lower than that of potential theoretical calculation. It does not exclude stopping at 1.5-2 million per day. The total daily demand will remain at about 150 million high for a period of time. Therefore, the potential export capacity of masks will gradually increase with the further decline of the number of epidemic stocks and the improvement of the situation in the two quarter.