Research Report on Mask Industry in 2022 _ China _ Output Value _ Protection

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    Original title: Research Report on Mask Industry in 2022 Chapter I Industry Overview The types of masks mainly include ordinary gauze masks, medical masks (usually disposable), industrial dust masks (such as KN95/N95 mask), daily protective masks and protective masks (against oil fumes, germs, dust, etc.). Medical masks have higher technical requirements than other types of masks, and can only be produced after obtaining relevant medical device registration certificates. For ordinary people at home or outdoor activities, the choice of disposable medical masks or ordinary protective masks can meet the daily needs of epidemic prevention. According to the shape, masks are divided into three types: flat, folding and cup-shaped. The flat mask is easy to carry, but the tightness is poor; the folding mask is easy to carry; the cup-shaped breathing space is large, but it is not convenient to carry. It can be divided into three types according to the wearing mode, the head-wearing type is suitable for the workshop workers who wear for a long time, and it is troublesome to wear; the ear-wearing type is convenient to wear, and it is suitable to wear and take off frequently; the neck-wearing type uses S hooks and some soft material connecting pieces to connect the ear belt into a neck belt type, which is suitable for wearing for a long time and is more convenient for the workshop workers who wear safety helmets or protective suit. According to the classification of materials used, it can be divided into five categories: Gauze masks: Gauze masks are still used in some workshops, but the requirements of GB19084-2003 standard are low, which does not meet the GB2626-2019 standard, and can only protect large particles of dust. Non-woven masks: Most of the disposable protective masks are non-woven masks, which are mainly based on physical filtration supplemented by electrostatic adsorption. Cloth mask: Cloth mask only has the effect of keeping warm without the effect of filtering very small particles such as PM. Paper mask: It is suitable for food, beauty and other industries. It has the characteristics of good air permeability, convenient and comfortable use. The paper used follows the GB/T22927-2008 standard. Masks made of other materials, such as new biological protective filter materials. Figure Type of mask Expand the full text Source: Qianji Investment Bank of Asset Information Network China is a big country in the mask industry, producing about 50% of the world's masks. Before the outbreak of the epidemic, the highest daily production of masks in China was more than 20 million. Data show that the growth rate of the output value of the mask industry in mainland China is more than 10% from 2015 to 2019. In 2019, the output of masks in mainland China exceeded 5 billion, with an output value of 10.235 billion yuan. The fastest mask production speed is 120-200 per second, but a standard process of analysis and disinfection takes 7 days to half a month. Because medical masks are sterilized with ethylene oxide, after sterilization, there will be ethylene oxide residues on the masks, which not only irritate the respiratory tract, but also carcinogens. In this way, the residual ethylene oxide must be released by means of analysis to meet the safety content standard, and only after passing the test, can it be listed on the market. Figure Distribution Map of Medical Mask Merchants Source: Asset Information Network, Qianji Investment Bank, iMedia Consulting China's mask industry has developed into a mature industry with an annual output value of over 10 billion yuan, and the fit, filtration efficiency, comfort and convenience of masks have also been greatly improved. In addition to surgical mask, there are many subdivisions such as dust prevention, pollen prevention, PM2.5 filtration, etc. Masks can be seen in hospitals, food processing plants, mines, urban haze and other scenes. According to the data of iMedia Consulting, in 2020, the market scale of China's mask industry has been greatly increased on the basis of the original continuous growth, reaching 71.41 billion yuan; in 2021, it has dropped to a certain extent, but the overall market scale of the mask industry is still expanding. Figure Market Scale and Forecast Data of China's Mask Industry Source: Asset Information Network, Qianji Investment Bank, iMedia Consulting From the total output and data of China's masks in 2017-2021, we can see that in 2017-2019, the scale of China's mask industry has maintained a sustained growth. During the coronavirus epidemic in 2020, a large number of upstream and downstream enterprises in the mask industry collectively increased production and changed production, which stimulated the great leap forward development of China's mask industry. With the control of the epidemic, the demand for masks declined, and the excess production capacity of masks will face greater adjustment, and the overall output will decline in 2021. Figure Total production and forecast data of masks in China Source: Asset Information Network, Qianji Investment Bank, iMedia Consulting According to the data of mask output value in mainland China from 2015 to 2019, the output value of China's mask industry has maintained a high-speed and stable growth trend, with an average annual growth rate of more than 10%. Among them, the output value of China's mask industry reached 10.24 billion yuan in 2019, and the proportion of medical masks used for germ protection reached 54%. According to the forecast of iMedia Consulting, affected by the coronavirus epidemic, the output value of the mask industry will reach 26 billion yuan in 2020, and the proportion of medical mask output value will increase significantly. However, with the end of the epidemic, the digestion and adjustment of excess capacity is expected to make the output value of the mask industry fall back to 21.09 billion yuan. Figure Data analysis of the output value of China's mask industry Source: Asset Information Network, Qianji Investment Bank, iMedia Consulting Chapter II Industrial Chain and Technology Development 2.1 Industrial chain and value chain Figure Mask Industry Chain Source: Asset Information Network, Qianji Investment Bank, iMedia Consulting The distribution of domestic production capacity is mainly concentrated in the Yangtze River Delta and the Beijing-Tianjin-Hebei region, and is directly related to the regional industrial base: the upstream raw materials and midstream production enterprises are mostly concentrated in the Yangtze River Delta region with a good foundation of traditional medicine, while the downstream circulation enterprises are too scattered. Figure Mask Industry Chain Source: Asset Information Network, Qianji Investment Bank, China Business Industry Research Institute From the perspective of the industrial chain, in the upstream, the Yangtze River Delta region is the most concentrated area of enterprises in the upstream of the medical mask industry chain, accounting for 43.8% of the total number of enterprises. Among them, Jiangsu Province and Shandong Province have the largest number of enterprises, 13 and 10 respectively. In the middle reaches, the Yangtze River Delta region is the most concentrated area of enterprises in the middle reaches of the medical mask industry chain, accounting for 40% of the total number of enterprises. Among them, Jiangsu Province and Henan Province have the largest number of enterprises, 24 and 21 respectively. In the downstream, the Yangtze River Delta and Beijing-Tianjin-Hebei region are the most concentrated areas of downstream enterprises in the medical mask industry chain, accounting for 64% of the total number of enterprises. Among them, Beijing and Shanghai have the largest number of enterprises, 380 and 189 respectively. Figure Number of Upstream Enterprises Source: Qianji Investment Bank Financial Reading Club of Asset Information Network 2.2 Technology development Common medical masks are mainly composed of three layers of non-woven fabrics. The inner layer is a common non-woven fabric; the outer layer is a non-woven fabric subjected to waterproof treatment and is mainly used for isolating liquid sprayed by a patient; and the middle filtering layer is polypropylene melt-blown fabric subjected to electret treatment, has good filtering property, shielding property, heat insulation property and oil absorption property, and can filter viruses attached to body fluids. Figure Schematic diagram of SMS without gauze structure Source: Qianji Investment Bank of Asset Information Network On the whole, the technical barriers to the production of medical masks are not high, and the main bottlenecks lie in medical qualifications and the supply of raw materials. The core material of the mask is the polypropylene melt-blown non-woven fabric after electret treatment, which is the key to filtering the novel coronavirus aerosol. The principle is that the melt-blown material is made by hot melting of its own fibers, and the non-woven fabric produced by the melt-blown method with a thicker thickness is randomly arranged with the interlayer, forming a multi-curved channel structure of melt-blown material, so that particles (novel coronavirus aerosols) will collide with the fibers and be retained. Simply speaking, the common medical mask (SMS) on the market is generally composed of the surface layer of spunbond non-woven fabric, the filter layer of melt-blown fabric and the inner layer of spunbond non-woven fabric. Figure The core material of the mask is melt-blown fabric. Source: Qianji Investment Bank of Asset Information Network According to the survey, there are 97 melt-blown non-woven fabric manufacturing enterprises in China, mainly distributed in East and South China, including 29 melt-blown non-woven fabric manufacturing enterprises in Jiangsu, mainly represented by Jiangsu Shengfang Nanomaterial Technology Co., Ltd., Suzhou Sukangda Environmental Protection Technology Co., Ltd. Secondly, there are 14 melt-blown non-woven fabric manufacturing enterprises in Guangdong, including Guangzhou Xinhuilian Non-woven Fabric Co.,Quickly Delivery Disposable Protective Clothing, Ltd. and Foshan Huahan Sanitary Material Co., Ltd. It is understood that at present, the start-up load of some melt-blown fabric production enterprises has increased to 80%. There are four non-woven fabric bases in China, Guangdong, Zhejiang Xialu, Hubei Xiantao and Fujian. It is worth noting that Xiantao, Hubei. In Xiantao's GDP, in 2018, non-woven fabrics and products accounted for more than 35%. There is the largest processing and export base of non-woven products in the world. The export of non-woven products in Xiantao City accounts for more than 40% of the national market share, and the output value accounts for 60% of the national total, ranking first in the country. Non-woven fabrics are the core raw materials for making masks. Spunlaced non-woven fabrics are used in the production of medical professional masks. According to Zhuo Chuang's statistics, as of 2019, there are more than 300 spunlace production lines in operation in China, and they are growing at an annual rate of about 8%. From 2015 to 2019, the production capacity and output of spunlaced non-woven fabrics in China continued to grow at a high speed, with an average growth rate of 13.59%. By the end of 2019, there were 180 spunlaced non-woven enterprises in China, an increase of 20 compared with 2018. More than 80% of the spunlace production lines and more than 90% of the production capacity and output are concentrated in the eastern coastal areas. There are about 75 spunlaced non-woven enterprises in Zhejiang, accounting for 42% of the total number of spunlaced non-woven enterprises in China. The flat mask machine produces disposable flat masks, which are also the machine equipment for producing medical masks. The mask produced by this machine is simple and easy to wear. The flat mask is made of two layers of non-woven fabrics and filter paper. The disposable three-layer mask is made by ultrasonic welding of melt-blown fabric with a layer of filter added in the middle of two layers of fiber non-woven fabric specially used for medical and health care to prevent bacteria by more than 99%. The nose bridge is made of environment-friendly all-plastic strip without any metal, which is breathable and comfortable to wear. The filtering effect is up to 99%, especially suitable for electronic factories. Fig. Plane mask production machine Source: Asset Information Network, Qianji Investment Bank, Aibang Polymer Figure Production Flow Chart Source: Asset Information Network, Qianji Investment Bank, Aibang Polymer The invention relates to a cup-shaped mask machine, which is equipment for producing various cup-shaped masks, wherein cup-shaped masks with certain filtering performance are manufactured by the processes of hot pressing, folding and forming, ultrasonic cutting, waste material cutting, ear band nose bridge welding and the like of a plurality of layers of non-woven fabrics; and the mask equipment is not a single machine and needs the cooperation of a plurality of machines to complete various processes. Figure cup mask machine Source: Qianji Investment Bank of Asset Information Network 2.3 Policy supervision At present, there are five main technical standards for masks in China. Including Technical Requirements for Protective Masks for Medical Use (GB 19083-2010), Technical Specifications for Daily Protective Masks (GB/T 32610-2016), surgical mask (YY 0469-2011) and Disposable Medical Masks (YY/T 0969-2013) Respiratory Protective Equipment-Self-priming Filter Particulate Respirator (GB 2626-2006). Figure Main Standards and Scope of Application of Masks in China Data source: Chinese Journal of Infection Control of Qianji Investment Bank of Asset Information Network The mainstream standards of the United States and the European Union are ASTM F2100-2019 Standard Specification for Material Performance of Medical Masks and EN14683-2014 Requirements and Test Methods for Medical Masks. According to the standard interpretation, the filtration levels of medical masks, N95 masks and KN95 masks are the same, and the filtration efficiency can reach more than 95%. In the outline of the 13th Five-Year Development Plan, it is mentioned that basic services such as basic medical care and public health should be strengthened and efforts should be made to achieve full coverage. In particular,Against Bacteria Breathable KN95 Face Mask, a series of announcements jointly issued by the financial and taxation departments require that from January 1, 2020, in view of the difficulties in some areas and key industries, enterprises should effectively alleviate the difficulties in the special period of epidemic prevention and help win the battle of epidemic prevention and control, which is good news for high-quality mask manufacturers. Masks, as a necessary daily protection for the public and professional medical and health supplies, will usher in a blowout situation after the "novel coronavirus" epidemic, stimulated by the dual favorable factors of national policy and market demand. Figure Analysis of the Policy Environment of the Mask Industry Source: Asset Information Network, Qianji Investment Bank, iMedia Consulting Chapter III Industry Valuation, Pricing Mechanism and Global Leading Enterprises 3.1 Industry comprehensive financial analysis and valuation method According to the comprehensive financial indicators, the income scale, net profit and growth rate of the mask industry are increasing year by year, and the growth rate in 2020 is significantly accelerated, largely due to the impact of the COVID-19 epidemic. ROE and ROA of the industry also showed an upward trend of fluctuation. From the perspective of industry valuation and historical comparison, the valuation of masks is generally higher than that of a shares, and the overall trend shows a state of fluctuation and decline. Single-quarter revenue year-on-year industry history is more consistent with the trend of all a shares, but single-quarter revenue in 2020 increased significantly year-on-year. Figure Comprehensive Financial Analysis Source: Wind, Qianji Investment Bank, Asset Information Network Figure Industry valuation and historical comparison Source: Wind, Qianji Investment Bank, Asset Information Network Figure Single-quarter Revenue Year-on-Year Industry Historical Comparison Source: Wind, Qianji Investment Bank, Asset Information Network Figure Single-quarter Net Profit Year-on-Year Industry Historical Comparison Source: Wind, Qianji Investment Bank, Asset Information Network Figure Historical comparison of single-quarter net profit margin industry Source: Wind, Qianji Investment Bank, Asset Information Network Figure Historical comparison of PE industry Source: Wind, Qianji Investment Bank, Asset Information Network Figure PB Industry History Comparison Source: Wind, Qianji Investment Bank, Asset Information Network Figure Historical comparison of PS industry Source: Wind, Qianji Investment Bank, Asset Information Network Table Analysis of the Main Business Structure of Guangdong Evergreen as an Example Source: Wind, Qianji Investment Bank, Asset Information Network Table Comparison of Valuation of Listed Companies in China Source: Wind, Qianji Investment Bank, Asset Information Network The valuation methods for the mask industry can be P/E ratio, PEG, P/B ratio, P/S, P/S, EV/Sales, RNAV revaluation of net assets, EV/EBITDA, DDM, DCF discounted cash flow, NAV, etc. 3.2 Industry development Masks have an early origin and appeared as early as the 13th century. Masks have been used in the court in ancient China to prevent the breath of attendants from touching the emperor's food. At the end of the 19th century, German doctor Kurich proposed the use of gauze to cover the mouth and nose during surgery to avoid infection. Historically, masks have played an important role in infectious diseases. At the beginning of the 20th century, in the plague epidemic in Northeast China, Dr. Wu Liande suggested the use of masks for protection, which played a very good role in fighting the epidemic. During the 1918 Spanish flu pandemic, people were forced to wear masks. In the 20th century, masks have increasingly played an important role in clinical practice and the prevention and treatment of infectious diseases. In the 1960s and 1970s, industrial dust masks began to appear in order to reduce the damage caused by industrial dust to health. 3m has developed a proprietary technology based on non-woven fabrics and electrostatic fiber filter cotton, and has been producing real estate masks since 1967, and has gradually become a global leader in the mask industry. During the "Severe Acute Respiratory Syndrome (SARS)" in 2003, the public demand for masks increased dramatically, and since then, the technical requirements and industry standards of the domestic mask industry have been introduced. Since 2012, more and more attention has been paid to the haze problem, and the demand for anti-haze masks has begun to increase significantly. 3.3 Development driving factors (1) The state has introduced preferential policies and emergency channels to support the production of epidemic materials, and the drug regulatory authorities have accelerated the emergency approval of medical devices. In order to carry out epidemic prevention and control, the State Drug Administration requires provincial drug regulatory authorities to actively start emergency approval procedures for medical devices while strengthening quality supervision. As of February 7, 2020, the provincial drug administration has approved 88 applications for registration of medical devices in accordance with the emergency approval procedures for medical devices, including 4 medical protective masks, 17 surgical mask, 20 disposable medical masks, and 16 new approvals in two days. According to the statistics of the National Medical Products Administration, as of February 7, 2020, there were 63 medical protective masks, 171 surgical mask and 364 disposable medical masks approved nationwide. (2) The state has introduced preferential fiscal and taxation policies and promised to purchase excess medical materials from enterprises. On February 7, 2020, the State Council held a press conference on the joint prevention and control mechanism of the pneumonia epidemic infected by the new coronavirus, KN95 Face Mask ,Medical Quickly Delivery Antivirus Coverall, at which the relevant ministries and commissions of the state said that in addition to adopting fiscal and taxation policies to support the prevention and control of COVID-19 pandemic and alleviating the difficulty and high cost of financing for small and micro enterprises, the relevant ministries and commissions of the State Council also held a press conference. In order to encourage enterprises to increase the production of key medical protection materials in short supply with quality and quantity guaranteed, after the end of the epidemic, if there is an excess supply of related products, all the key medical prevention and control materials produced by enterprises will be purchased and stored by the government. (3) Many provinces and cities encourage enterprises to put into production as soon as possible with preferential policies. Some provinces and municipalities encourage enterprises to resume production as soon as possible, and have introduced subsidy policies for mask machine manufacturers, which can be rewarded up to 50% of the price of each set of equipment. In Guangdong Province, the maximum subsidy for mask manufacturers who buy mask machines to increase production is 80% of the equipment; The local provincial finance shall give a discount of 50% of the interest rate of the People's Bank of China for the new loans in 2020 to the key guarantee enterprises for epidemic prevention and control determined by the state and the province, as well as other health and epidemic prevention, medical products and medical equipment enterprises that play a prominent role in supporting epidemic prevention and control. (4) The supply of raw materials has gradually stabilized, and mask production enterprises in some provinces and cities have started and reached production capacity. In 2019, China's polypropylene production capacity was 52 million tons, and in 2020, China's new propylene production capacity alone reached 7.63 million tons per year. According to estimates, 100000 tons of polypropylene fiber can produce 25 billion masks, and the upstream polypropylene fiber raw materials for the production of masks are sufficient. With the gradual resumption of polypropylene fiber production enterprises and the resumption of logistics transportation, the problem of raw material supply has been solved, which can guarantee the production of non-woven fabrics for mask production. In this case, China's mask production chain is gradually smoothing out, and the major provinces of mask production are urgently resuming the production of masks. According to the data released by the National Development and Reform Commission, as of February 11, the resumption rate of mask manufacturers in China exceeded 76%, the utilization rate of production capacity reached 94%, while the utilization rate of production capacity of medical N95 mask reached 128%, and the production of masks increased significantly compared with the Spring Festival. (5) Some enterprises outside the industry added new mask production lines to ease the shortage of internal mask supply. In order to support epidemic prevention and increase the production of masks and other related epidemic prevention materials, some non-industrial enterprises have added new mask production lines. For example, Industrial Fulian has announced that the newly introduced mask production line has been put into trial production on February 5, 2020, and it is expected that the production capacity of 2 million masks per day will be realized by the end of February, giving priority to the internal production and epidemic prevention of nearly one million employees of Foxconn Technology Group. The joint supplier of SAIC-GM-Wuling has switched to mask production by rebuilding the production line. A total of 14 mask production lines have been set up, of which 4 are N95 mask production lines and 10 are general medical protective mask production lines. The daily output is expected to reach more than 1.7 million, which will be completed and put into use within this month, mainly to alleviate the shortage of medical supplies in Guangxi. In addition, BYD, Daddy Baby, Sinopec and Foci Pharmaceutical have added new mask production lines, with new production capacity reaching 5 million disposable medical masks per day, 2 million per day, 1 million per day and 200000 per day respectively. In addition, listed companies or subsidiaries such as Shanghai Nursing Industry, Mercury Home Textiles, Huafang Stock, Qingsong Stock, Three Guns Underwear, Red Bean Clothing and Baoxiniao also indicated that they would temporarily change their lines to produce masks and medical protective suit. From January 1 to February 7, 2020, more than 3000 enterprises in China have added "masks, protective suit, disinfectants, thermometers, medical devices" and other businesses to further increase domestic production of masks and alleviate the contradiction between supply and demand. (6) Export to domestic sales can further increase the supply of mask products in China China's annual production of masks accounts for about 50% of the world's total, making it the largest producer and exporter of masks. According to the data of the Ministry of Industry and Information Technology, China's existing mask production capacity is about 20 million per day, combined with recent new capacity initiatives, mask production capacity is expected to increase to 35-40 million per day by the end of February. After reaching the production capacity, the domestic supply of masks will be guaranteed. In addition, the provinces actively promote the export of masks to domestic sales, which will further increase the supply of masks in the domestic market. Among them, the Market Supervision Bureau of Hubei Province and the Food and Drug Administration of Hubei Province jointly issued a document to allow the sale of masks for export to domestic sales that are not listed in the domestic market in the province. The relevant government departments of Guangdong Province also said that if the masks for export to domestic sales meet foreign standards, they can be transferred to domestic sales on the basis of additional Chinese for licensing; In order to speed up the domestic sale of goods, Shenzhen Longgang Customs actively strives for the policy of "registration and release, direct lifting of the factory area" and subsequent supplementary procedures for customs clearance to ensure the rapid delivery of epidemic prevention materials to the front line. In addition, there are also upstream material manufacturers such as non-woven fabrics that will transfer their export products to domestic sales to supply domestic mask manufacturers and increase the production of masks. 3.4 Industry risk analysis and risk management Table Common Industry Risk Factors Source: Qianji Investment Bank of Asset Information Network Common risks in this industry are as follows: (1) High threshold for raw material production The production process of melt-blown fabric is complex, the requirement of production equipment is high, and the investment in the early stage is large. It involves polymer science, fluid mechanics, airflow, spinning and so on, and has high requirements for technicians. (2) Industry concentration is not high There are many enterprises producing masks in China, but most of them are small in scale, and there are less than 400 enterprises with medical mask production licenses, mostly in Henan, Jiangxi, Jiangsu, Hubei and Guangdong. The production standards of civil protective masks and medical masks are also different. The civil protective mask standards GB/T32610-2016 and GB2626-2006 are applicable to particulate matter protection; the medical field standards GB19083-2010, YY0469-2011 and YY/T0969-2013 are applicable to medical institutions. In order to meet the demand for masks in the epidemic situation, on March 11, the Middle Class Association officially issued the T/CNITA 09104-2020 Standard for Civil Health Masks. Mask manufacturers have played an important role in the epidemic, but it may cause overcapacity. In 2019, the maximum production capacity of masks in China is about 20 million per day, which can meet the market demand. In 2021, China may face the problem of overcapacity, which may face a relatively large industry adjustment, and the output will be greatly reduced. (3) Low profit margin Mask industry has low technical threshold, fierce competition, single product structure and low added value, which leads to low profit margin. Only Zhende Medical and Ogilvy Medical are listed companies whose main business is masks. Chart 1 lists the ratio of profit to operating income of the two companies, which has shown a downward trend in the past three years. N95 mask with high added value and weak local brand advantage are dominated by international brands such as 3m, Honeywell, Kimberly and Gardeno. Figure 2016-2018 Ratio of total profit to operating income Source: Asset Information Network, Qianji Investment Bank, Health Sector 3.5 Competitive Analysis Market Competition Environment — — Based on Porter's Five Forces Model (1) The threat of competitors in the same industry At present, China's mask industry has a large number of brands, and there are few influential mask brand enterprises. The brand market share of enterprises in the industry is relatively low, and the brand share of the top three enterprises does not exceed 25%. Major domestic enterprises and brands: leading shares (Sanqiang, Conch), Tianjin Teda (Teda), Shanghai Meike Nonwoven Products Co., Ltd. (Yishu, Jike, Gangkai), Dongguan Rongxin Anti-static Technology Co., Ltd. (Rongxin), etc. (2) Threat Analysis of Substitutes The so-called substitute refers to other products that replace another product in function. Its threat to the original replaced product mainly comes from the competition for the market and consumers, that is, whether the other party has profitability, how satisfied users are with the quality and function of its products, and how easy it is for users to turn to the substitute. In the current mask market, there are not many products that can replace masks, and the threat of substitutes is small. (3) Demand-side threat analysis With the spread of the COVID-19 epidemic, the demand for masks in China has exploded, and people across the country have begun to wear surgical mask. The daily demand for masks is hundreds of millions, and there is a serious shortage of masks. On the other hand, due to the validity period of masks, the inventory cycle is 1-2 weeks, generally do not hoard a large number of goods, mask enterprises have almost emptied the inventory. Therefore, there is little threat from the demand side. (4) Supply-side threat analysis Hubei Province is the main production area of non-woven fabrics for mask production in China. Pengchang Town under the jurisdiction of Xiantao City in Hubei Province is known as the "Capital of Non-woven Fabrics". The output of non-woven fabrics accounts for 60% of the total national output and a quarter of the global market share. Affected by the epidemic, it is difficult for enterprises in Hubei Province to start work. Many production lines of non-woven fabric production enterprises in Xiantao City are in a state of shutdown because workers are not on duty, which has caused great pressure on the supply of domestic high melt index melt-blown non-woven products. At the same time, the manufacturers of high-melt polypropylene fibers used in the production of non-woven products, mainly enterprises in Liaoning, Henan and Shandong provinces, have been affected by the epidemic. The efficiency of road transportation has been reduced, and the production machines for urgently purchased medical materials have also been delayed due to the slow logistics speed, which has affected the production of mask-related products to varying degrees. In order to meet the inspection and quarantine standards of medical masks, according to the production process of medical masks, after the masks are formed, the manufacturers need to put the masks in 400 mg/L ethylene oxide (EO) environment for disinfection, so as to inactivate microbial macromolecules and achieve the purpose of sterilization. However, ethylene oxide is flammable and explosive, and is a carcinogen, so masks need to stand for 7 days after disinfection for analysis, and can be packaged and delivered to medical staff only after the EO residue is lower than the required value. Under the premise of production shortage, the product listing still needs to face a lag period of 7 days, and the short-term emergency rescue is more difficult. (5) Potential entrant threat Potential entrants are another key factor affecting the intensity of competition and profitability of the industry. They will bring new production capacity and require a certain market share. In today's mask market, the entry of any new organization will pose a threat to the original, which is mainly reflected in the competition for downstream market demand and the diversion of upstream market resources. The huge demand of the market has attracted many manufacturers to enter the market, and the miscellaneous brand army has been fighting in Jianghu. Searching for the words "PM2.5 masks" on e-commerce websites such as Jingdong, Tianmao and Taobao, we found that there are many brands, including Miaobishu, RZ MASK, Westinghouse, Zhou Spectrum, Jiabai and Ito Liangpin, besides 3m and Green Shield. In the army of these miscellaneous brands, there is no lack of shoddy products that steal the concept. Some brands imitate or even copy well-known brands in terms of appearance design and product introduction; some have "concepts" that their products do not have the function of protecting PM2.5 at all; what is more, they produce fake and inferior products. The mask market, which is divided into "three parts of the world", is not stable; counterfeit and counterfeit products are still rampant in the market, and the introduction of industry standards is imminent. Analysis base on SWOT model Source: Qianji Investment Bank of Asset Information Network 3.6 Important participants of Chinese enterprises Figure China's Listed Participating Enterprises Source: Qianji Investment Bank of Asset Information Network Blue Sail Medical [002382. SZ] The main business of Blue Sail Medical Co., Ltd. is the production and sale of health protective gloves. The company's main products include disposable medical gloves, household gloves, etc., mainly used in medical examination and protection, food processing, electronics industry. Blue Sail Medical is the leading enterprise in the global PVC health protective gloves industry, and the annual production, sales and market share of PVC health protective gloves are the first in the world. Steady Healthcare [300888. SZ] Steady Medical Supplies Co., Ltd. is mainly engaged in the research and development, production and sales of cotton products, covering medical and health care, personal care, family care, maternal and child care, home textile apparel and other fields. The company's main products include high-end wound dressing products, traditional wound care and dressing products, operating room infection control products, disease control and protection products, body surface cleaning and disinfection products, pure cotton soft towels, cotton surface sanitary napkins, pure cotton wet wipes, baby products, baby clothing, adult clothing and so on. According to the statistics of China Medical Insurance Chamber of Commerce, the company has been in the top three of China's medical dressing exports for many years. Yangpu Medical [300030] Established in 1996, Guangzhou Yangpu Medical Technology Co., Ltd. was listed on Shenzhen GEM in 2009 with the stock code of 300030. Since its establishment, Yangpu Medical has been moving towards a collectivized and internationalized company combining medical device product platform and medical service through continuous technological innovation and management innovation. Up to now, the company's business areas have covered platforms such as "Clinical Laboratory Specimen Solution", "Clinical Laboratory Diagnosis", "Imaging Diagnosis", "Clinical Nursing and Anesthesia" and "Health Management" and "Hospital Digital Overall Solution". The company has nearly 20 subsidiaries and branches in mainland China, Hong Kong, the United States and Germany, and its products and services have covered nearly 10,000 medical institutions in more than 90 countries and regions around the world. 3.7 Global Key Competitor Figure Global Major Listed Participating Companies Source: Qianji Investment Bank of Asset Information Network United Health Group [UNH. N] UnitedHealth Group, Inc. is a diversified company dedicated to helping people lead healthy lives and better jobs. The company offers its products and services through two distinct platforms: health insurance and benefits services, and information and technology-enabled health services. The company has four reportable segments through two business platforms: United Healthcare, Including United Healthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, United Healthcare Community & State and United Healthcare International; OptumHealth; OptumIn sight and OptumRx. Johnson & Johnson [JNJ. N] Johnson & Johnson was founded in New Jersey in 1887. Johnson & Johnson, together with its subsidiaries, has approximately 134,000 employees worldwide engaged in the development, manufacture and sale of a wide range of products in the healthcare field. Johnson & Johnson is a holding company with more than 260 operating companies in nearly every country in the world. The main focus of the company is on products related to human health and well-being. Johnson & Johnson executive board is the main management team responsible for the company's strategic operations and resource allocation. The committee is responsible for overseeing and coordinating the activities of the company's three business units: Consumer, Pharmaceutical and Medical Devices. AbbVie [ABBV. N] Incorporated on April 10, 2012, AbbVie is a global, research-based biopharmaceutical company. Abbvie develops and markets advanced therapies to address some of the world's most complex and severe diseases. Abbvie's products are focused in the areas of chronic autoimmune diseases, including rheumatoid arthritis, psoriasis and Crohn's disease, psoriasis and Crohn's disease; low testosterone, HIV, endometriosis; thyroid disease; Parkinson's disease; and complications of chronic kidney disease and cystic fibrosis-related or other health problems. Chapter IV Future Outlook At present, due to the outbreak of the new coronavirus, the price of masks and raw materials has risen rapidly, and the whole industry chain has been driven up. At this time, it is certainly profitable to enter this industry. As a result, some manufacturers are eager to expand their production capacity, and some large manufacturers, such as BYD and SAIC Wuling, have transformed their production equipment to produce masks to meet the current demand for epidemic prevention and profit from it. However, the high demand caused by the epidemic can not remain stable for a long time. In the current situation of unusually high buying enthusiasm, many manufacturing giants are rapidly changing production. Global overcapacity will be the inevitable trend of future development. At that time, the price will be lower than the level before the outbreak of the epidemic crisis and return to its real value. In the field of masks, only by continuously developing and improving high-tech products and core raw materials (such as multi-functional long-life masks, ultra-fine melt-blown materials, nano-materials), not only the well-known N95 type masks, but also the brand and channel, can an enterprise be guaranteed to be prosperous forever. We can try to cooperate with the clothing industry for diversification, and make the special functional filter materials (such as waterproof breathable membrane) into clothes such as assault clothes; we can also improve the existing shortcomings of masks, for example, the current use of FFP3 masks has high respiratory resistance, which is more difficult than the use of FFP1 or FFP2, and can only be compensated by increasing the filter area. While ensuring the protective effect, it will also be a good trend in the mask market to reduce the air resistance of FFP3 and FFP2 masks. The future function of masks will not only prevent respiratory diseases, but also other kinds of functional masks, and the market structure will also change. This will certainly bring manufacturing opportunities to China, the world's largest producer and exporter of masks. Today, China has entered the journey from a big manufacturing country to a powerful manufacturing country. Consumption upgrading and industrial upgrading are bringing new demands. The research and development of core materials and core technologies are urgent. Otherwise, it will be a flash in the pan just like when Green Shield masks surpassed 3m in marketing and channels. However, with the continuous investment of the country and the whole society in R & D,3 Ply Disposable Protective Face Mask, more and more entrepreneurs with their own awareness of innovation and intellectual property rights, the R & D and innovation capabilities of Chinese enterprises will be improved day by day. Given time, we will have manufacturing giants like 3m and Honeywell. Cover Photo by engin on Unsplash back to Sohu to see more Responsible Editor:. zjyuan-group.com

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