The new polymer foam IXPE is replacing the traditional foam in many application fields, and the IXPE manufacturer Zhejiang Runyang New Material Technology Co.Ltd(300920) Zhejiang Runyang New Material Technology Co.Ltd(300920) .sz is actively expanding its production capacity. Wang Guanghai, general manager of the company, mentioned at the 2021 performance briefing held on May 20 that the expansion of phase I and phase II production lines of the company’s Vietnam production base has been completed, and the total capacity of IXPE is 80 million square meters. The release of capacity provides a full guarantee for the growth of revenue in 2022. In addition, the “IXPE expansion project with an annual output of 100 million square meters” is expected to be put into operation in the first half of 2023.
Zhou Shuangshuang, the company’s chief financial officer, said at the performance meeting that the loss of the Vietnamese factory in 2021 was mainly due to the purchase of semi-finished products from the parent company at the market price at the initial stage of expansion and the epidemic situation in Vietnam. At present, the factory has been in normal operation; China’s production lines are less affected by the epidemic, and the capacity utilization rate is as high as more than 80%. The financial Associated Press reporter learned that the company’s existing annual production capacity of IXPE is 210 million square meters, of which China’s production capacity is 130 million square meters.
IXPE products of the company are mainly used in the manufacturing field of PVC plastic flooring. In addition, the “Gute cotton” (gfoam) developed based on IXPE products has become a new profit growth point cultivated by the company. Zhou Shuangshuang mentioned that Gute cotton should be used for mother and baby climbing pads. In the future, the company will promote Gute cotton climbing pads to gradually replace traditional XPE crawling pads and become the mainstream core material of the industry.
The financial Associated Press reporter learned from the performance meeting that the climbing mat is an important product for the company to expand the mother and baby market. It adopts the to B and to C two wheel drive strategy. At present, it has reached cooperation with many mother and baby brands such as “Xi”, “lunastore” and “baby love”. At the same time, it has cooperated with Haier’s mother and baby brands to broaden sales channels. The company’s own brand “doctor Doll” and “Euterpe” double brand flagship stores are located in tmall, pinduoduo, JD, Tiktok Xiaohongshu and other platforms settled in.
Yang Qingfeng, chairman of the company, said at the performance meeting that the new product ixeva developed by the company has started shipping and can be applied to home construction, culture and sports. The financial Associated Press reporter noted that the development of new fields resulted in an increase in the company’s R & D expenses, with a year-on-year increase of 44.37% in 2021. Zhou Shuangshuang mentioned that the increase in R & D investment combined with the rise in raw materials led to the decline of the company’s net profit last year. “The average LDPE price index of the company’s main raw materials has increased by more than 20% compared with 2020. With the correction of raw material prices and the release of new production capacity, it is conducive to the repair of the company’s gross profit margin.”
