1. Robust Medical Care is one of the first batch of domestic medical dressing export enterprises, which has maintained the first export value of China's medical dressing industry for many years. In 2009, based on "cotton spunlaced nonwovens", the company established "Purcotton cotton era" and quickly occupied the consumer goods market, realizing the coordinated development of "winner sound medical care" and "Purcotton cotton era".
2. From 2017 to 2019, the company's main business income was 3.438 billion yuan, 3.788 billion yuan and 4.512 billion yuan respectively, of which the income from healthy consumer goods was 2.144 billion yuan, 2.384 billion yuan and 3.031 billion yuan respectively, accounting for 62.37%, 62.93% and 67.18% respectively. The rest are medical dressings and cotton spunlaced nonwovens. In the same period, the gross profit margin of the company's main business was 47.80%, 49.18% and 51.75% respectively, and the net profit margin was 12.23%, 11.08% and 11.96%, respectively. While the company's business is growing rapidly, it still maintains good profitability.
3. In the field of medical dressings, robust Medical has successively launched representative high-end dressing products such as silicone foam dressings, hydrocolloid dressings, super absorbent pads and negative pressure drainage products, which is expected to break the monopoly of large international medical enterprises in this field and realize import substitution. From 2017 to 2019, the sales revenue of the company's high-end dressing products was 54.7647 million yuan, 70.1686 million yuan and 84.555 million yuan respectively, with a rapid growth momentum.
4. In the field of consumer goods, cotton spunlaced nonwovens technology has been granted patents in more than 30 countries and regions, including the United States, Europe, Japan and so on. around this technology, the company has successfully built an industrial cluster covering the field of medical dressings and consumer goods, with a business income of 3.031 billion yuan in 2019, and cotton towels have grown into a 1 billion-grade single product. The concepts of cotton, health and environmental protection are deeply rooted in the hearts of the people, and are expected to comply with the general trend of upgrading consumption and achieve faster growth.
5. The company plans to invest 1.426 billion yuan for high-end dressing production line construction projects, marketing network construction projects, R & D center construction projects and digital management system projects. After the completion of the project, the company's R & D capability and competitiveness in the field of medical dressings will be improved in an all-round way.
Inherit the medical gene
In-depth exploration of "cotton changes the world"
Robust medical care is one of the earliest enterprises in China to establish the whole industry chain of medical gauze from cotton procurement to textile and weaving, and to realize the direct export of finished gauze products. The company takes "cotton" as the core, realizes the coordinated development of medical and consumer sectors through the two major brands of "winner sound medical care" and "Purcotton cotton era", and is determined to continuously promote healthy, comfortable and environmentally friendly products to the market and create a world brand that belongs to the Chinese people.
From 2017 to 2019, the company's main business income was 3.438 billion yuan, 3.788 billion yuan and 4.512 billion yuan respectively, of which the income from healthy consumer goods was 2.144 billion yuan, 2.384 billion yuan and 3.03 billion yuan respectively, accounting for 62.37%, 62.93% and 67.18% respectively. The rest are medical dressings and cotton spunlaced nonwovens. In the same period, the gross profit margin of the company's main business was 47.80%, 49.18% and 51.75% respectively, and the net profit margin was 12.23%, 11.08% and 11.96%, respectively. While the company's business is growing rapidly, it still maintains good profitability.
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Robust Medical Care is a benchmark enterprise in the domestic medical dressing industry, which has established a medical-grade quality management system earlier in the industry, and has maintained the first export volume of China's medical dressing industry for many years. Its products have covered home care, infection prevention, wound care and other fields, and have obtained European Union CE certification, American FDA certification and Japanese Ministry of Health certification. In 2005, the company entered the domestic hospital and drugstore market by virtue of its own brand "winner robust Medical". At present, it has covered more than 2000 hospitals and nearly 40000 drugstores in China, most of which are tertiary hospitals.
As a leading enterprise in the domestic medical dressing industry, Sound Healthcare promotes the establishment of a medical dressing branch of the China Medical and Health products Import and Export Chamber of Commerce, and takes over as the chairman of the Medical dressing Association for a long time. Lead the industry to continuously standardize operation and gradually expand international market share with high-quality products. At present, the export volume of medical dressings in China has accounted for about 20% of the global market share of medical dressings.
In China, there are still some problems in medical dressing enterprises in China, such as small scale, low industry concentration, low-end products, serious homogenization and so on. From 2017 to 2019, the domestic income of the company's medical dressings was 280 million yuan, 356 million yuan and 405 million yuan respectively, which has a leading scale advantage.
In 2005, in order to solve the industry problem of wound infection and even medical accidents caused by traditional medical gauze, robust medical care lasted three years, invested hundreds of millions of yuan, and successfully developed all-cotton spunlaced nonwovens technology. In 2009, with cotton spunlaced nonwovens as the basis and "medicine close to life, cotton care for health" as the brand proposition, "Purcotton cotton era" came out, and robust medical care officially expanded from medical products to household products, becoming the first medical dressing company to incubate consumer brands in China, entering the era of two-wheel drive of medical treatment and consumption.
The core products of the cotton era all use high-quality Xinjiang cotton, Australian cotton and American cotton as the main raw materials, refer to the high standards of medical dressings, and advocate replacing chemical fiber products with "comfortable, healthy and environmentally friendly" cotton products. let consumers stay away from chemical stimulation, at the same time reduce environmental pollution, return to a natural and healthy way of life.
With the help of the excellent quality control and technical research and development capabilities accumulated in the medical business for many years, the cotton era continues to introduce consumer goods of medical quality, expanding the commercial territory to cover mothers, infants, children, adults and other consumer groups. across high-end cotton soft towels, female care, baby care, adult clothing, home textiles and other product lines.
From 2017 to 2019, the operating income of the company's consumer goods sector was 2.144 billion yuan, 2.384 billion yuan and 3.031 billion yuan respectively. In October 2019, the cotton era won the reputation of "70th Anniversary Brand of New China" sponsored by CCTV.
Today, the income of robust medical cotton products accounts for more than 85% of the main business income. The company has deeply implemented the brand concept of "whole cotton changes the world" and innovatively launched the product strategy of replacing chemical fiber with cotton. The aim is to promote the industry and market to use more cotton and grow cotton at the same time by deeply ploughing the large health business with "cotton" as the core. According to the National Bureau of Statistics, China's cotton production has increased from 3.503 million tons in 2015 to 5.002 million tons in 2019, with an average annual compound growth rate of 9.31 percent.
Grasp technology and market with both hands
Build core competitiveness
Continuous R & D investment is one of the most important means for sound health care to maintain competitiveness. From 2017 to 2019, the company's R & D investment was 88.628 million yuan, 116.564 million yuan and 155.1932 million yuan respectively, accounting for 2.53%, 3.04% and 3.39% of operating income respectively. By the end of 2019, the company had a total of 946 design and R & D personnel, accounting for 10.57% of the total staff.
In the field of medical dressings, robust medical care is based on market demand, closely fits the clinical and terminal, and continues to develop and launch new products, ranging from single wound care products such as gauze to comprehensive solutions for wound care, infection protection and disinfection and cleaning. The company has successively launched representative high-end dressings such as silicone foam dressings, hydrocolloid dressings, super water absorption pads and negative pressure drainage products, which can be used in chronic wound healing scenes such as diabetic feet, large area burns and wounds. it is expected to break the monopoly of large international medical enterprises in this field and realize import substitution.
From 2017 to 2019, the sales revenue of the company's high-end dressing products was 54.7647 million yuan, 70.1686 million yuan and 84.555 million yuan respectively, with a rapid growth momentum. In addition to high-end medical dressings, robust Medical actively meets the needs of customers, and the customized surgical packages launched are also eye-catching. The company said that customized surgical packages can provide a list of optional components according to different surgical needs, develop customized solutions, reduce costs and improve nursing convenience. The sales income of infection control products in robust medical operating room from 2017 to 2019 was 167 million yuan, 189 million yuan and 241 million yuan respectively.
In 2005, in order to solve the industry problem of wound infection and even medical malpractice caused by traditional medical gauze, robust medical has been researched and developed for more than three years, with a total investment of hundreds of millions of yuan, and successfully developed the patent technology of cotton spunlaced nonwovens. This technology takes cotton as the basic raw material, and the material produced has the characteristics of comfort, safety and environmental protection. it can be used not only in the field of medical dressings, but also in the field of consumer goods, which lays a technical foundation for the company to successfully expand the field of consumer goods.
Cotton spunlaced nonwovens technology has obtained patent authorization in more than 30 countries and regions, such as the United States, Europe, Japan and so on. Focusing on this technology, the company has developed products that can replace gauze in the field of medical dressings, such as imitation gauze sheets and imitation yarn cloth pads. In the field of consumer goods, we have innovatively developed pure cotton soft towels, pure cotton wet towels, cotton surface sanitary napkins and cotton diapers, and successfully built a technology cluster.
More importantly, after the introduction of cotton soft towels in the cotton era, it caused a huge market effect, and many brands followed suit one after another. According to the statistics of China Industrial Textiles Industry Association, there were only 26 spunlaced nonwovens production lines in China in 2015. Stimulated by the strong demand downstream, the number of spunlaced nonwovens production lines in China reached 45 in 2018, with a total production capacity of 110000 tons per year.
In November 2018, cotton spunlaced nonwovens and their products won the list of the third batch of manufacturing champion products of the Ministry of Industry and Information Technology and the China Federation of Industrial Economics; in November 2019, the cotton era was guided by the State Administration of Market Supervision and Administration. China Institute of Standardization issued the title of "leader" of enterprise standards in 2019.
With the help of years of technology accumulation and high-quality products, "winner robust Medical" has covered more than 2000 hospitals and nearly 40000 retail pharmacies across the country, and foreign medical customers have covered more than 70 countries and regions, including Europe, Japan, the United States and so on. Purcotton Cotton era has opened 247 offline stores in mid-and high-end shopping malls in more than 50 key cities across the country, including Shenzhen, Shanghai, Beijing and Guangzhou. The two brands have been stationed in Tmall, JD.com and other third-party e-commerce platforms, and are in the forefront of the related product categories of the major e-commerce platforms.
In 2019, the sales revenue of Tmall's flagship store in the cotton era was 1.124 billion yuan, while that of the official mall was 68.2081 million yuan. From January to March 2020, Tmall and JD.com received more than 275 million views on the channel. Under the circumstances that the COVID-19 epidemic had a tremendous impact on the real economy, in the first half of 2020, with the exception of masks and protective clothing, the income of other products reached 2.12 billion yuan, an increase of 5.37% over the same period last year, thanks to online channels.
Medical treatment + consumption two-wheel drive
The upgrading of consumption creates new opportunities
No longer controlled by others in the field of medical dressings, it is the original intention of Li Jianquan, founder of sound medicine, to truly achieve the best level of basic materials for high-end dressings in the world; it is Li Jianquan's dream to continue to create value for consumers in the field of consumption, and cotton to change the world.
BMI Research statistics show that in 2018, the global market for medical dressings reached 12.158 billion US dollars, and the domestic market reached 6.538 billion yuan. At present, China has become the world's largest exporter of medical dressings, with an export value of US $2.716 billion in 2019. The quality of traditional wound care products in China has reached the leading level in the world, but there is still a big gap between China and developed countries in the field of high-end dressings.
From the global trend, with the aging of the population and the improvement of medical quality, the demand for multi-functional, new materials and high value-added medical dressings is becoming increasingly urgent. Industry insiders say that chronic wounds, burns and complex surgical wounds are difficult, time-consuming, painful and may cause serious complications, and there is a more urgent need for high-end dressings based on the theory of wet wound healing. According to BMI, the global market for high-end dressings is expected to grow from $5.595 billion in 2017 to $7.015 billion in 2022.
In the field of disposable surgical kits that focus on robust medical care, according to statistics from CMI institutions, the global market size of customized surgical kits in 2017 is about US $8.973 billion, with an average annual compound growth rate of 10.2%. Among them, the market size of China's customized surgical kits is about US $540 million, with an average annual compound growth rate of 12.2%, and the market prospect is very broad.
After the outbreak of the COVID-19 epidemic, the global demand for masks, protective clothing and isolation clothing continued to rise. Under the background that the global epidemic has not been effectively controlled, masks are expected to become daily necessities. Research institute QYResearch predicts that the global market demand for various types of masks will reach 40.662 billion in 2020, corresponding to a market size of US $6.318 billion. From 2021 to 2026, the mask market will maintain a high growth rate of US $2.01 billion, 2.274 billion yuan, US $2.485 billion, US $2.801 billion, US $3.095 billion and US $3.532 billion, respectively.
More importantly, although China is the largest exporter of medical dressings, the industry as a whole still thinks that large international brands of medical dressings are mainly engaged in brand production (OEM) and lack of brand competitiveness. With the further improvement of medical quality and medical safety level by medical reform, the industry concentration is gradually increasing, which is conducive to large-scale, strong and well-managed large and medium-sized enterprises to further expand their market share.
For the cotton era, its category layout is comprehensive, covering mothers, infants, children, adults and other consumer groups, across high-end cotton towels, female care, baby and child care, adult clothing, home textiles and other product lines, its sales income of healthy consumer goods has reached 3.031 billion yuan in 2019, accounting for 67.18% of the total business income.
More importantly, the cotton era adheres to the concept of "whole cotton changes the world" and is determined to build a brand with the best, most breathable, safest and most sustainable natural fiber-cotton. According to the data of the National Bureau of Statistics, the per capita disposable income of urban residents in China has reached 42359 yuan per year in 2013, with an average annual compound growth rate of 8.15% from 2019 to 2019. The rise of the middle class has given birth to a large number of middle and high-end consumer demand, the concept of health and environmental protection, in the spring tide of consumption upgrading, facing unlimited business opportunities.
Raise funds to increase the core business
A single cotton is in full bloom.
This time, Sound Medical publicly issued 50 million shares at a price of 74.30 yuan per share, raising a total of 3.715 billion yuan, with a planned investment of 1.426 billion yuan, for high-end dressing production line construction projects, marketing network construction projects, R & D center construction projects and digital management system projects.
The construction project of high-end dressing production line aims at the international high-end medical dressing market, with an investment of 217 million yuan to transform a workshop of about 3000 square meters and introduce advanced production and testing equipment at home and abroad. After the completion of the project, the company will form an annual production capacity of 10 million silicone dressings, 20 million high absorbent dressings, 100000 negative pressure drainage dressings and 5 million antibacterial dressings. At that time, the company's leading position in the field of high-end dressings will be consolidated and the product structure will be further optimized.
The R & D center project plans to invest 235 million yuan, including spunlace laboratory, debleaching laboratory, dyeing laboratory, functional finishing laboratory, electromagnetic compatibility laboratory and wound repair materials laboratory. Through the construction of R & D center, the company aims to accelerate the development and timely launch of new products that adapt to cutting-edge technology and match market demand, so as to maintain a leading position in technology for a long time. It is obvious that the R & D center project and the high-end dressing production line project will complement each other, helping the company to quickly enter the high-end dressing field and accumulate strength for the cotton era brand.
For the cotton era, this listing is undoubtedly of great significance. On the one hand, the company's capital market image will form a linkage effect with the brand to help the company's brand continue to carry forward. On the other hand, the company plans to invest 705 million yuan this time to add 96 directly operated stores in 45 key cities across the country within three years, with a total new business area of 59995 square meters. The company said that in the cotton era, the density of stores in first-tier cities was not high, and the layout of second-tier cities in provincial capitals had not yet been completed, which to a certain extent hindered the improvement of the company's brand awareness and competitiveness. After the completion of the fund-raising project, the company will expand and improve the existing offline marketing network in breadth and depth, in order to further enhance the company's market share and achieve a steady improvement in business income and profit level.
Quality takes precedence over profit, brand takes precedence over speed, and social value takes precedence over enterprise value. After the fund-raising is in place, the competitiveness of sound medical care in the field of medical dressings and consumer goods will be comprehensively enhanced, and the grand plan of "cotton to change the world" is being realized. (CIS)