On the evening of April 23, Nuobang shares (603238. SH) released its 2023 performance report, the company achieved revenue of about 1.915 billion yuan last year, a year-on-year increase of 20.48%, and net profit attributable to the parent company of 82.6449 million yuan, a year-on-year increase of 119.07%. The company intends to distribute a cash dividend of 3 yuan (tax included) to all shareholders for every 10 shares.
In 2023, Nuobang will seize the opportunity of industrial recovery to further expand the incremental space of the wet market, and rely on independent research and development and innovation to continuously strengthen its core competitiveness. In addition, the company also opened the first year of its own brand "Xiaozhijia", opened up the upstream and downstream industrial chains, and opened a new development stage of coordinated development and parallel development of the three major business sectors of coils, products and private brands.
Adjusted the strategy based on the situation and doubled the net profit for the whole year
Founded in 2002, Nuobang was invested and established by Hangzhou Boss Industrial Group. For a long time, Nuobang Co., Ltd. has continued to focus on the main business of spunlace nonwoven materials and products, and at the same time expanded the business of dry wipes and wet wipes of nonwoven material products, and the company's development has moved forward steadily.
In 2023, with the domestic macroeconomic recovery and the continuous upgrading of residents' consumption of disposable hygiene products, the consumption capacity and confidence of downstream products of spunlace nonwovens will be enhanced, driving the demand for upstream coils to resume growth.
Customs data shows that overseas demand for nonwovens will continue to pick up in 2023, with exports reaching 1.3 million tons, up 9.1% year-on-year, worth US$3.81 billion, and overseas markets for disposable hygiene products remaining active, with exports reaching 3.32 billion yuan, up 11.7% year-on-year.
Based on the above-mentioned market changes, Nuobang Co., Ltd. adjusted its marketing strategy in a timely manner, actively developed large orders from large customers of washable materials in wet production lines, increased the number of overseas business orders for double TT lines, and realized the growth of coil sales and sales, and the growth rate was more than double digits. According to the annual report, in 2023, Nuobang will achieve revenue of 1.015 billion yuan in overseas markets, accounting for 53.01% of revenue.
On the procurement side, on the one hand, Nuobang continues to maintain long-term and stable cooperation with major raw material suppliers to ensure the dual needs of high-quality washable product performance and environmental protection from the source of fiber. On the other hand, the company has opened up raw material supply channels and adopted the strategy of "shopping around, high quality and high price", which has effectively reduced the cost of raw material procurement and achieved substantial results in cost reduction.
On the production side, Nuobang has accelerated digital transformation, applied new information technologies such as the Internet of Things, artificial intelligence, and intelligent warehousing to build a smart factory, effectively improving the efficiency of production management. The IPS project of the smart factory has successfully launched all modules, including process review management, customer complaint after-sales management, order proofing, cost refinement management, etc., greatly improving the operation efficiency of order receiving and scheduling and production. It can be said that Nuobang shares will reduce costs and increase efficiency, and improve the efficiency of enterprises.
In 2023, the revenue of Nuobang will be about 1.915 billion yuan, a year-on-year increase of 20.48%, the net profit attributable to the parent company will be 82.6449 million yuan, a significant increase of 119.07% year-on-year, and the net profit attributable to the parent company will be 71.0661 million yuan, a year-on-year increase of 188.30%. Compared with 2022, the company's net profit has doubled, and its operating performance has made great progress.
Fortunately, the good trend of stable growth in the performance of Norbond shares continued in the first quarter of 2024. According to the company's disclosure, the company's revenue in the first quarter of 2024 was 437 million yuan, a year-on-year increase of 9.95%, and the net profit attributable to the parent company was 20.4843 million yuan, a year-on-year increase of 98.70%.
The company intends to distribute cash dividends of 3 yuan (tax included) to all shareholders for every 10 shares, and the total dividend amount (tax included) reached 53.2527 million yuan, accounting for 64.44% of the net profit attributable to ordinary shareholders of listed companies in the consolidated statements. The company actively responds to the call of the new "National Nine Articles" and shares the joy of growth with shareholders.
R&D investment is stable and continuous, and the company has reaped fruitful results
As a leading enterprise in the domestic spunlace nonwovens industry, Nuobang's technology has maintained a leading position in the industry.
It is understood that Nuobang Co., Ltd. completely covers the production processes of dry carding, wet molding and dry and wet mixing, and is one of the manufacturers with the most complete product categories and the most complete technology in the domestic spunlace nonwovens industry, and can also customize products according to the individual needs of customers.
In 2013, Nuobang Co., Ltd. became the first enterprise in China and the third in the world to produce the first generation of fully degradable and environmentally friendly spunlace materials on a large scale, and successfully put it into the market, with strong market response. With the continuous deepening of independent research and development, the products of Sanlichong continue to achieve technological breakthroughs.
In 2023, Norbond Co., Ltd. successfully achieved a technical leap in the technical leap of scattered vertical punching products, met and exceeded the American IWSFG washable standard (the highest washable standard in the world), and achieved wet strength, thickness, safety and environmental protection on the basis of 100% washable and 100% biodegradable performance indicators ranked among the top in the world, which greatly improved the user experience.
At the same time, the company continued to expand the application scenarios of dry products, and during the reporting period, the company developed a variety of new products from the aspects of fiber raw materials, manufacturing, process quality, and user experience to better meet the customized needs of customers.
The continuous breakthrough of technology is mainly due to the long-term and stable R&D investment of Nuobang shares, and the company is well aware that technological innovation is the foundation of survival. In 2023, the R&D expenses of Nuobang Co., Ltd. will reach 81.5333 million yuan, a year-on-year increase of 29.76%, and the company's R&D expenses have maintained a growth trend in the past three years.
Long-term and stable R&D investment has yielded fruitful results for Nuobang shares. In 2023, Nuobang will apply for 15 new patents, including 11 invention patents, and obtain 24 authorized patents, including 10 invention patents. Up to now, the company has obtained a total of 178 authorized patents, including 63 invention patents, and the number of patents, especially the number of invention patents, ranks in the leading position in the industry.
Open up the upstream and downstream industrial chain and realize the strategic transformation from B-end to C-end
After years of hard work, Nuobang has successfully opened up the upstream and downstream industrial chains, and opened a new stage of development in which the three major business sectors of coils, products and private brands have developed and gone hand in hand.
Among them, the coil business is mainly the R&D and production of spunlace nonwovens related business of Norbond Co., Ltd., and the company's technical process is in the leading position in the industry; the product business is mainly the business of R&D and production of multi-functional, high-performance and environmentally friendly wet wipes by Hangzhou Guoguang, a holding subsidiary, which is one of the manufacturers with the most complete wet wipes product line in China, and Hangzhou Guoguang will achieve revenue of 1.102 billion yuan in 2023, a year-on-year increase of 23.11% Own brand, in 2023, the company officially opened the first year of its own brand "Xiaozhijia", and Xiaozhijia achieved annual sales revenue of 16.5294 million yuan, a year-on-year increase of 67.52%.
It is understood that Xiaozhijia company takes the wet toilet paper series products with the patented technology of Nuobang Sanlichong as the main selling point and the kitchen cleaning series with unique wood core spinning materials, and expands the product types such as beauty cleaning and maternal and child care. While enriching the product matrix, further increase the intensity of channel expansion, the company will be the platform e-commerce Tmall, Jingdong as the main sales channels, open flagship stores, distribution stores, category franchise stores and other ways to increase sales, while focusing on promoting the construction of new media channels such as e-commerce Douyin, Kuaishou, Xiaohongshu, last year's double 11 promotion achieved the top three on Tmall in the rag category, the top five on JD.com, and the 12th on the Douyin hot list.
It is worth mentioning that in 2023, the gross profit margin of Nuobang's own brand products will reach 50.53%, an increase of 22.91 percentage points compared with the same period of the previous year, and the profitability of its own brand will continue to increase, and it is expected to provide greater contributions to the company's performance in the future.
On the whole, the strategy of transformation from B-end to C-end has achieved phased success, and with the full support of the boss group, the strategic transformation of Nuobang shares, which has excellent manufacturing innate genes, is expected to accelerate and enter a new stage of development.
From the perspective of industrial development, the Ministry of Industry and Information Technology and the National Development and Reform Commission jointly issued the "Guiding Opinions on the High-quality Development of the Industrial Textile Industry", which shows that by 2025, the industrial added value of industrial textile enterprises above designated size will grow by about 6% per year, and 3-5 enterprises will enter the first echelon of global industrial textiles. The ability of scientific and technological innovation has been significantly improved, the proportion of R&D expenditure of key enterprises in the industry has reached 3% of the main business income, the application of recycled fiber and biomass fiber has reached 15%, and the numerical control rate of key processes of nonwovens enterprises has reached 70%, intelligent manufacturing and green manufacturing have an obvious effect on the quality and efficiency of the industry, and the comprehensive competitiveness of the industry has been further improved.
Looking forward to 2024, the mainland industrial textile industry will be good for a long time, and it is expected that the spunlace nonwovens business will continue to recover. Continuous investment in product development, scientific and technological innovation, talent training and other aspects has enhanced the internal motivation of the industry to expand into new fields, and the huge domestic demand market and diversified application directions will help the sustainable development of the industry. Nuobang Co., Ltd. adheres to the unwavering development of its main business, focuses on differentiated spunlace technology, continues to promote R&D and innovation, and continuously optimizes its product structure, and the company is expected to usher in a period of rapid growth in performance.
In the future, with the continuous clearing of small and medium-sized production capacity in the industry and the continuous optimization of the supply and demand pattern of the industry, Nuobang Co., Ltd., as an industry leader, is expected to continue to benefit.