Since entering March, the development of the new crown epidemic has been touching people's hearts, and the industries related to the epidemic have once again attracted attention.
On April 13, Blue Sail Medical announced its 2021 annual results. In 2021, Blue Sail Medical achieved revenue of 8.109 billion yuan, an increase of 3.04% year-on-year.
Blue Sail Medical has performed well during the 2020 epidemic. Entering 2021, the global epidemic fluctuates, and the demand for epidemic prevention supplies changes is reasonable. However, from the average performance of the past two years, Blue Sail Medical is still steadily increasing its income.
The widespread epidemic of the new crown Opmi kerong mutant strain is even greater, and the pressure of epidemic prevention is even greater, and various industries will still face challenges. The operation of Blue Sail Medical, the leader of medical consumables, may also face variables and experience a round of fluctuations again.
Medical glove shuffle period: expel bad money
The stable supply of all kinds of protective equipment is the key to the fight against the epidemic. Blue Sail Medical's performance is almost an indicator of the intensity of the fight against the epidemic in China and the world, and its core product PVC gloves account for 22% of the global market share.
In 2021, the global epidemic is still developing, but there is already a stable and calm trend. Under the background of the rapid growth of revenue in 2020, Blue Sail Medical achieved a 3.04% increase in 2021. Among them, Lanfan Medical's pillar business health protection products achieved revenue of 7.354 billion yuan, up 8.91% year-on-year.
The slowdown in the growth rate of Blue Sail Medical's core performance, in addition to the weakening of the epidemic trend, there is also a major factor that under the inducement of the epidemic dividend, many enterprises that originally had no experience in the glove industry have joined the market competition, diluting the "cake" of all competitors in the industry.
Blue Sail Medical said at an investor relations event in early November 2021 that one of its main products, nitrile gloves, as an example, has seen an influx of many glove suppliers during the epidemic. However, due to the high technical threshold of nitrile gloves, the price decline after the epidemic is stable is an important period for companies with low efficiency, high cost and limited financial strength in the industry.
Blue Sail Medical is also actively participating in the competition. In 2021, Blue Sail Medical has landed a number of glove projects, including the "first phase of the annual output of 7.5 billion health protection (nitrile gloves) project", the Vietnam 800 million PVC gloves project, the "10 billion / year high-end health protection nitrile gloves project" phase I production line, the "200 million pairs / year surgical gloves project" phase I and ii a total of 120 million pairs of surgical gloves project and so on.
Counting Lanfan's PVC, Ding Qing, latex, TPE and other gloves, the production capacity of all gloves of Lanfan Medical in 2022 will be at least more than 50 billion.
In the fluctuations of the epidemic, Blue Sail Medical's decision did not fluctuate, but insisted on expanding production capacity. In the future, these production capacities are expected to be converted into a larger market share. Some institutions have pointed out that after a group of enterprises that rushed into the market were eliminated, it is predicted that the last few manufacturers will cover more than 80% of the global market.
The period of cooling down of protective equipment is also the stage of industry reshuffle. What consumables companies such as Blue Sail Medical have to do is to wait for the opportunity of the industry with a positive attitude. According to the Frost & Sullivan report, global disposable protective glove sales are expected to increase from 529 billion in 2019 to 1,285.1 billion in 2025, with a compound annual growth rate of 15.9%.
New opportunities in the post-pandemic era: emergency care
In addition to the glove business, Blue Sail Medical's emergency care business is also one of the highlights.
The epidemic has greatly increased the need for security. Developed countries and regions such as Europe, the United States and Japan will be equipped with first aid kits in cars, public places, homes, etc., while the domestic market has not yet been fully developed, and there is actually a large demand.
According to incomplete WHO statistics, about 350 million people are injured in accidents on the mainland every year, of which about 3.5 million people die due to poor on-site rescue. According to the statistics of "Research on the Marketing Strategy of Yunnan Baiyao First Aid Kits", the allocation rate of emergency kits in Chinese households is only about 5%, while the allocation rate of long-term emergency kits in European and American families is more than 70%, and the equipping rate of Japan, an earthquake-prone country, has reached 90%.
During the epidemic, in addition to hoarding food and vegetables, the demand for first-aid kits that can "save lives" in emergency moments is also growing rapidly. According to QYResearch, in 2019, The size of China's medical emergency kit market was 253 million US dollars, and it is expected to reach 401 million US dollars in 2026, with a compound annual growth rate of 6.62%.
In 2016, Lanfan Medical invested in AutoNavi Ambulance through the merger and acquisition fund and stepped into the field of emergency protection. In 2020, when the epidemic struck, Blue Sail Medical quickly acquired 100% of Wuhan Bikaier, the parent company of AutoNavi Ambulance. According to the 2021 annual report, the Blue Sail Medical First Aid Kit has included 16 products in 8 series such as home, office first aid kit, car, outdoor, AED and so on.
Blue Sail's on-board first-aid kit has reached cooperation with many well-known car companies around the world, including Mercedes-Benz, BMW, Audi, Renault, etc., and has become the exclusive global supplier of tesla all models of on-board first-aid kits.
In addition to on-board first-aid kits, residential, office, military, outdoor sports, etc. are also gradually becoming new scenes of application and essential first-aid kits. In 2021, Blue Sail Medical sold more than 10 million sets of first-aid kits, nearly 70 million masks, and more than 1.6 million reflective vests.
In the field of emergency care, AED is another major attraction of Blue Sail Medical. Emergency care in public places has become a hot topic of social concern in recent years, and automated external defibrillators (AEDs) have been adopted in many places. At the end of 2021, the General Office of the National Health Commission issued the Notice on the Configuration Guidelines for Automated External Defibrillators in Public Places (Trial), which clarified the AED planning configuration and installation requirements for the first time from the technical level.
At the end of 2021, Lanfan Medical joined hands with Suzhou Weiweisi Medical Technology Co., Ltd. to win 2,000 AED government orders in Zibo City, Shandong Province, which is the largest order for domestic government AED procurement. In the future, the allocation of AEDs in public places around the world will be strengthened, and Blue Sail, which has been recognized by local governments, may usher in more opportunities.
In addition to seizing the new market opportunities in emergency care, the layout of multiple channels has also become an important measure for Lanfan Medical to occupy market share.
At the end of 2021, Blue Sail Medical officially entered the new retail. Taobao, Alibaba, Tmall, JD.com and other four traditional e-commerce platforms will naturally not fall. Among them, on February 11, 2022, Lanfan Medical signed a strategic cooperation agreement with JD Health to further promote the omni-channel launch of its products in JD Health.
In addition, new media digital marketing is also in the new retail layout of Lanfan Medical, such as product publicity and product planting, live broadcasting and video delivery through platforms such as Xiaohongshu, Weibo, Douyin, and public accounts. In the case of continuously matching multiple consumer groups, Blue Sail Medical will gradually play a set of marketing "combination fists" for the C-end, B-end and G-end.
Since March, the outbreak of the epidemic in many parts of the country, especially in the Shanghai area is more serious, Blue Sail Medical once again acted as the vanguard of the epidemic battle, it is reported that the domestic epidemic situation and the past two years of overseas epidemic is not the same, the largest amount of latex surgical gloves on the market, Blue Sail Medical in 2020 at the beginning of the outbreak of the epidemic, on the investment in the construction of latex glove production line and surgical glove clean workshop, this year's domestic epidemic outbreak, rapid expansion of latex surgical gloves and surgical gloves production capacity, rush to shanghai. And give full play to the online platform and offline channels built by the new marketing, quickly expand the epidemic prevention series product categories through design and development, link collaboration and other ways, and quickly transform to the overall solution to provide epidemic medical protection.
In 2021, the pillar industry of Lanfan Medical has gradually matured, and while seizing market opportunities to expand products, it has also actively broadened marketing channels, which will give Lanfan more confidence to embrace change in the changeable market environment after the epidemic.