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Two wet production lines to be built in sections, Yi Chun seeks to obtain the license by the end of next year.

Yi Chun Huanke*-Sun (6912), which was listed on the Emerging Stock Exchange's Strategic New Board on 10/19/2022, posted August revenues of $94,000, the second-highest since the start of revenue generation, slightly lower than the $96,000 in July of last year, and its revenues for the first eight months of this year have increased by 97% year-on-year. However, the sporadic figures in the early stages of operation, mainly from the existing NG defective diapers dry processing production line, General Manager Qin Xijun (see photo) said, dry is only one of the scope of business, the overall revenue does not help too much, the wet treatment of waste dirty diapers is the bulk of the projected end of this year after the construction of equipment is complete, the middle of tomorrow (2024) should be able to complete the trial run before the end of next year after obtaining the license to the real mass production to amplify the key to revenue. It is expected that after the completion of the equipment by the end of this year, the trial run should be completed by the middle of next year (2024) and the license should be obtained by the end of next year.

Qin Xijun pointed out that can already start the NG defective diapers dry processing production line can handle the maximum daily capacity of about 8 ~ 10 tons of maximum capacity; as for the wet treatment of waste dirty diapers is expected to build two production lines, and to achieve the balance of profit and loss there are a number of conditions to the current market clearing price, if the median price of the general acceptance of the loss of the level of the point of estimation, the approximate utilization of production capacity of 2 ~ 3 achievements can be achieved.

Yi Chun plans to set up two wet treatment production lines in the Luzhu plant but adopts a phased approach to invest in them, waiting for the first one to be fully constructed and licensed for commercialization, and then investing in the second one after confirming that there is no problem with its stability. Qin Xi-Jun pointed out that when only one commercialization, the capacity utilization rate of about 50% to reach the break-even point, when there are two commercialization at the same time, then about 20% of the capacity utilization rate to reach the break-even.

At this stage to see Yi Chun operation significantly increased, Qin Xi-Jun said, because the upstream and downstream support has been relatively complete, the main key to obtain a license, but the progress is determined by the public sector, this part is more difficult to grasp, but even after obtaining the license, the utilization rate of the production capacity will be slowly adjusted upward from 10%, but the company's business is relatively proactive in the continuous contact with customers, in order to obtain the license to get ready for the transfer of the business first.