Zhitong Financial APP learned that according to the disclosure of the Hong Kong Stock Exchange on February 26thThe world's largest glove manufacturer, the top glove group.China International Capital Corporation is the sole sponsor of the application for listing on the main board of the Hong Kong Stock Exchange.
Gloves are the company's main product, used for medical purposes (including clinical examinations and surgeries) and non-medical uses (including household and food, automotive, manufacturing and retail industries), accounting for 99.4% of revenue in fiscal year 2020. In addition, non-glove products are also sold, including disposable three-layer protective masks, condoms, oral care products (including latex and non-latex dental rubber barriers), latex tourniquet, rubber elastic belt, latex mat, antibacterial bowl and plate cleaner and floor cleaner, etc. The company's glove manufacturing plants are located in Malaysia, Thailand, China and Vietnam, with a total installed capacity of 93 billion gloves per year.
According to Frost Sullivan dataIn 2019, the company has a global market share of 12.9%, 10.0% and 10.6%, respectively, in terms of sales revenue, sales and production. In terms of production capacity, the global market share in 2020 was 11.8%, which is about twice that of the second-largest manufacturer in the global glove industry.
During the track record period, revenue increased by 13.8% from RM4220.7 million in fiscal year 2018 to RM4801.1 million in fiscal year 2019, and further increased by 50.7% to RM7,237.4 million in fiscal year 2020.
Gross profitIt increased by 4.9% from RM842.4 million in fiscal year 2018 to RM884.0 million in fiscal year 2019, and further increased by 222.4% to RM2850.4 million in fiscal year 2020.
Gross profit marginIt fell from 20.0% in fiscal year 2018 to 18.4% in fiscal year 2019, and then increased to 39.4% in fiscal year 2020.
For the three months ended November 30, 2020Revenue and gross profit were 4758.3 million ringgit and 3445.3 million ringgit respectively, an increase of 293.5% and 1342.8% respectively over the three months ended November 30, 2019.Gross profit margin from as of219.7% of the three months ended 30 November 2009 increased to 72.4% of the three months ended 30 November 2020.The prospectus pointed out that the strong performance during the period was due to unprecedented demand for glove products during the outbreak.
The company has made a primary listing on the Malaysia Stock Exchange and a secondary listing on the Singapore Stock Exchange and is seeking a major listing on the main board of the Hong Kong Stock Exchange.The Directors are of the view that the listing of shares on the Hong Kong Stock Exchange will help to create another platform for shares to be traded through another rare's stock exchange, expand and strengthen the investor coverage of the Company and its investor base, and enhance the liquidity of the shares. and provide financing flexibility for future fund-raising.
The increase in the cost of the main raw material nitrile latex or natural rubber will significantly increase the production cost of the company. The procurement costs of the above raw materials accounted for 42 per cent, 43 per cent and 41 per cent of the total sales costs in the financial years 2018, 2019 and 2020, and 45 per cent in the three months ended November 30, 2020. The prices of raw materials such as nitrile latex and natural rubber latex fluctuate according to supply and demand, weather conditions, seasonality and crude oil prices.