Share This

Public company info - China Longevity Group Company Limited , 01863.HK
Input the stock code or the company name     Search  
 
 Profile   Information   Data   Financial Ratios   Profit Loss   Cash Flow   Balance   Earnings   Dividend 

China Longevity Group Company Limited, 01863.HK - Company Profile
Chairman Lin Shengxiong
Share Issued (share) 853,000,000
Par Currency Hong Kong Dollar
Par Value 0.001
Industry Chemical Products
Corporate Profile Business Summary: The Group is principally engaged in the design, development, manufacture and sale of (i) polymer processed high strength polyester fabric composite materials and other reinforced composite materials, (ii) conventional materials and (iii) PVC elastic flooring product. Performance for the year: This year, the Group recorded a growth of turnover by 23.1% from approximately RMB536.6 million last year to approximately RMB660.5 million. The profit attributable to shareholders for the year was approximately RMB40.4 million as compared to the profit approximately of RMB31.1 million for the previous year. Business Review Being one of the notable leaders among the industry of manufacturing new materials featuring eco-friendliness and special features around the globe, the Group provides skillful and functional new materials and super core flooring of Sijia for 18 industries, including healthcare, modern transportation, construction, renewable energy, agriculture, outdoor leisure sports and daily supplies. With their extensive industry experience, the management team of the Group does not only adhere to market orientation, but also hones in on patented technology, product innovation and market exploration. The Group also engages in the production and sale of path-breaking products, which are the joint development efforts of its technology research and development (“R&D”) team and academic institutions. A number of new products and production processes of the Group are also granted with independent intellectual property rights and national patents for invention. The Group’s material products (“Material Products”) business is located in Fuzhou and Shanghai. It utilizes self-developed equipment and processes that have been granted with the national invention patents in the manufacturing of new materials, such as drop stitch fabric, architectural membrane, waterproofing membrane, marquees materials, air tightness materials, inflatable boats materials and inflatable materials. These materials exhibit 9 key characteristics, including high tensile strength, anti-tearing, anti-stripping, flame retardant, anti-bacterial, anti-corrosive, durable, low temperature resistant and sunlight resistant. With their flame retardancy performance complying the standards of EU, U.S., Canada and national standards and gradings, these materials’ anti-UV capacity has also met the standard of ISO4892-3 672H 4-5. Their anti-mold and anti-bacterial characteristics conform to the U.S. standard of ASTM G21 0. These products are certified by a series of international environmental standards such as CE, ROHS2.0, REACh, EN71, ASTM 963, CPSIA and CA65, and their biocompatibility also complies with the standards of ISO 10993-5, — 10. The diversified applications of the Material Products and end-use products are applicable in 18 major sectors, including healthcare, modern transportation, construction, renewable energy, agriculture, outdoor leisure sports and daily supplies. The operations of the Group’s flooring products (“Flooring Products”) business are based in Fuzhou. Capitalising on their premium quality and eco-friendly properties, the Flooring Products are now the preferred floor decorative materials amongst buyers around Europe, U.S., Japan and Korea. Flooring Products are globally marketed under the brand of “Zero Formaldehyde Super Core Flooring”. These products were granted with a number of environmental certifications since they are in compliance with EU and U.S. regulations and environmental requirements, including EU CE, U.S. Floorscore, French A+, German AgBB, ROHS2.0 and REACH rules. The quality of these products are accredited by international/ EU/ U.S./ national standards, with their flame retardancy performance being accredited with various certifications reaching as high as Grade B1. Moreover, the sound attenuation of these products also passed a series of tests, including IIC reaching a maximum of 24dB. These products also passed EN 14372 and CA 65 phthalate 6P tests, when their anti-bacterial characteristics passed ASTM G21, reaching an excellence of level 0. Because the Flooring Products are eco-friendly, remarkably abrasion resistant, anti-bacterial, non-slip, highly elastic, shock resistant, fire-resistant, flame retardant, low-maintenance, water and moist-repellent, they have an outstanding price-performance ratio and are applicable in a wide spectrum of public and household domains, including education, healthcare, commerce, sports, offices, industrial usage and transportation. Due to our efforts, the Group achieved a total revenue of approximately RMB660.5 million for the year ended 31 December 2019 (2018: RMB536.6 million), representing an increase of approximately RMB123.9 million, or 23.1% over the last corresponding year. The overall increase in revenue was mainly attributable to the increase in demand for Material Products. The Group’s products were categorized into three types in 2018: (i) Reinforced Materials; (ii) Conventional Materials; and (iii) PVC Floor. In 2019, Conventional Materials is no longer a significant component due to its decrease in production. The Group has thus regrouped Reinforced Materials and Conventional Materials under one umbrella as “Material Products”. Furthermore, the Group successfully developed EUF flooring at the end of 2019, extending the scope of Flooring Products from PVC Floor to Non-PVC Floor. The two products are merged and classified as “Flooring Products” this year. The Group generated most of its revenue from the Material Products which accounted for approximately 94.2% (2018: 99%) of total revenue. Domestic sales continued to be the Group’s major source of revenue, representing approximately 68.2% (2018: 65.9%) of the total revenue while export sales accounted for approximately 31.8% (2018: 34.1%) of the total revenue. Market Prospects of Material Products and Flooring Products In 2019, the success of our research and development efforts over the past two years, brought about the Group’s the highest record of sales, including the sales of new products for drop stitch fabric and inflatable boats materials. Drop stitch fabric is a new material that was successfully developed and launched onto the market in recent years. It has been widely used in fields such as outdoor water sports, entertainment and military industry. Furthermore, reinforced drop stitch fabric has demonstrated its success in lifting the downstream processing factories’ efficiency in processing surfboards by nearly 20%. It also solved the issue of overwhelming solvent smell in workshops and the operating environmental issues caused by processes such as attaching reinforced tape and brush-applied coating. At present, the indexes of physical properties of TPU drop stitch fabric products have already outperformed those of products launched by our domestic and overseas industry peers, with the quality of these products even ranking on top of the list among our industry peers globally. These fabric products do not only cater to the needs of our global customers, but also deliver significant economic benefits. When the Group has now become the sole supplier around the world to deliver the largest production volume of both wrap-knitted and plain-weave drop stitch fabric, it has also become the preferred material supplier for the world-renowned French sports brand Decathlon in 2019, and the designated material supplier for the top ten brands in the world. Forging ahead, the Group is confident to deploy resources strategically to invent and develop more new products. In 2019, the Group marked its success by developing the Flooring Materials for the construction of medical isolation wards, which in turn have been applied to the manufacturing of negative pressure medical isolation wards for the prevention and control of the coronavirus outbreak in the PRC. The product has been used as the protected commodities for the prevention and control of the coronavirus outbreak in early 2020. Moreover, the Group’s Fuzhou factory was one of the first companies approved by the National Development and Reform Commission to implement epidemic prevention and control in February 2020. The same factory was also approved by the Fujian Provincial Department of Industry and Information Technology as one of the companies to implement epidemic prevention and control in the Fujian Province. On the other hand, the newly developed products in 2019, particularly Zero Formaldehyde Super Core Flooring and SPC lock flooring products, were used to renovate sterile factories to manufacture hazmat suits during the outbreak. As at 31 December 2019, the Group owned a total of 62 patents with respect to the Material Products. Among these, Fujian Sijia owned 40 patents (29 patents on inventions, 11 patents on practical new models) whereas Shanghai Sijia owned 22 patents (9 patents on inventions, 8 patents on practical new models and 5 patents on software copyrights). The Group has been proactive in patent application each year, thereby ensuring continued protection for the brand’s intellectual property rights. In 2019, the Sino-US trade war led to a multitude of challenges in the global market environment. A large number of competitors emerged to imitate the Group’s products in the market and adopted a low pricing strategy in order to increase their market shares. Consequently, the Group will encounter further unprecedented difficulties and challenges. Yet a challenging market may also lead to new innovations and opportunities. Crisis often gives rise to opportunities, whereas pressure and motivation are the two sides of the same coin. The Group will continue to promote Material Products and Flooring Products, including drop stitch fabric, eco-friendly TPU materials, inflatable boat materials, airtight materials, and inflatable materials, to high-end customers with a particular focus on promoting Flooring Products and new application products of drop stitch fabric materials and eco-friendly TPU materials, with an aim to expand the market of drop stitch fabric products which enjoys excellent gross profit margin so as to maintain the Group’s competitiveness. Material Products During 2019, the Group’s revenue generated from Material Products amounted to approximately RMB622.3 million (2018: RMB531.3 million) which accounted for approximately 94.2% (2018: 99%) of the Group’s total revenue, representing an increase in sales of approximately 17.1%. The increase in revenue from the Material Products is mainly due to increase in demand. Flooring Products During the year, the Group’s revenue generated from the Flooring Products amounted to approximately RMB38.2 million (2018: RMB5.3 million) which accounted for approximately 5.8% (2018: 1.0%) of total revenue. Prospects: Facing the severe global pandemic of COVID-19 with Europe becoming the new coronavirus epicenter, the continuing downturn of Eurozone economy, the Sino-US trade tensions and the slowing down of PRC economy, the Group will actively adapt to the national policy of “adjusting economic structure; transforming traditional manufacturing industries into new manufacturing industries”. It will adhere to the development principles of “stay on its original business, steady development, structure optimisation and continuous innovation”, and has implemented a series of adjustment measures: 1. stabilise the business development of new materials, and actively develop new products; 2. further develop special functional materials for domestic and foreign customers to expand the Group’s market shares; 3. establish more stable and reasonable strategic cooperation relationship with suppliers, so as to significantly lower procurement costs; 4. all staff of the Group participate in the optimisation of internal control processes in relation to procurement, production, sales, and finance, in order to enhance the operation efficiency of the Group. The Company has engaged professionals in its application for the resumption of trading in the shares of the Company on the Stock Exchange (the “Resumption”). Further announcement will be published to the Shareholders to update the latest progress of the Resumption as and when appropriate. Looking forward, the Group will upgrade its business and operation in 2020 by capitalising on its innovative technologies and its professional technical team, which is well-recognised both in domestic and foreign industries: 1. Shanghai Sijia will introduce domestic and international state-of-the-art production lines to expand the growth of upstream and downstream industrial chains; 2. Fujian Sijia will increase its efforts to facilitate technical transformation, and will lay plans for the addition of a production line exclusively for handling orders from Decathlon; 3. Fujian Sijia will continue to deepen the developments of drop stitch fabric, meanwhile to expedite the development of such fabric to become more applicable across different fields; 4. Fujian Sijia will speed up the product R&D of TPU materials for healthcare usage, and continue to push forward the advancement of eco-friendly TPU materials; 5. Fujian Sijia will increase its R&D efforts regarding the super core flooring products of Sijia for the purposes of diversifying its flooring products and exploring more applications of these products; 6. Fujian Sijia will conduct the intelligent transformation of its flooring production line to streamline its manpower in order to slash its labor costs and perk up its production efficiency. It will also continue to invest in expanding the production capacity of its flooring production line so as to bolster the new operating profit of the Group; 7. increase the publicity of foreign professional exhibitions, meanwhile to expand the market shares of our inflatable boat materials in Europe and our Flooring Products on global markets; 8. plan for the operation under the brand of zero-formaldehyde super core flooring of Sijia in the Chinese market; 9. continue to engage well-known institutions to assist in the improvement of site lean management, the upgrade of technical quality system and the improvement of quality control system, with our service focusing on quality technology innovation; meanwhile to provide quality innovation techniques to enterprises for assisting them in technology development, new product R&D, product quality improvement, service quality rating, quality diagnosis and assessment , as well as forecast and warning, in order to build the core competitiveness and lay the foundation for the new materials under the Sijia brand; 10. plan to recruit 30 undergraduates, postgraduates and doctoral students majoring in polymer materials and chemical engineering to join Sijia and nurture these skillful talents in order to further enhance the competitiveness of the enterprise, so do the competitive advantages of these talents for propelling the sustainable development of the enterprise; 11. step up the protection for the intellectual property rights of our new technology and new techniques, and apply for more patents on technology in order to equip the Group to become one of the most innovative high-tech enterprises in the industry and create values for the Shareholders; 12. plan to establish an enterprise technology center at the national level and cooperate with colleges to establish post-doctoral workstations; 13. strive onwards to create better living and working conditions for Sijia employees for the sake of further improving the quality of their physical and spiritual lives; and 14. actively observe the corporate responsibilities that we shall bear, proactively participate in activities to help villages thrive and pay back to our home villages, and support campaigns such as “Thousand Enterprises Helping Thousand Villages” and “Precision Poverty Alleviation by Education”.

Information from the financial statements of listed companies

Mobile | Full
Forum rule | About Us | Contact Info | Terms & Conditions | Privacy Statment | Disclaimer | Site Map
Copyright (C) 2024Suntek Computer Systems Limited. All rights reserved
Disclaimer : In the preparation of this website, 88iv endeavours to offer the most current, correct and clearly expressed information to the public. Nevertheless, inadvertent errors in information and in software may occur. In particular but without limiting anything here, 88iv disclaims any responsibility and accepts no liability (whether in tort, contract or otherwise) for any direct or indirect loss or damage arising from any inaccuracies, omissions or typographical errors that may be contained in this website. 88iv also does not warrant the accuracy, completeness, timeliness or fitness for purpose of the information contained in this website.