On February 3, China Red Medical disclosed the record of investor relations, which showed that affected by the change of supply and demand relationship after the stabilization of the epidemic, the glove price had dropped significantly in the early stage, making some glove manufacturers who lacked technical, cost, R&D, customer and market advantages gradually withdraw from the industry. The price of nitrile, PVC and other gloves fell sharply in the early stage, in addition to the release of a large number of new production capacity, there is an important reason for the early stock up dealers destocking behavior. Recently, glove makers have come to their senses and kept pace with capacity expansion.

According to the feedback from the Marketing Department, the dealers who hoarded goods in the early stage achieved obvious destocking effect. The production and sales volume of Nitrile Gloves with high gross profit rate of the company increased significantly in 2022 compared with 2021. The growth in production and sales also reflects changes in supply and demand in the market. According to the feedback from the sales department, glove prices have bottomed out and are beginning to show signs of recovery. Based on the current trend, the company believes that with the steady increase of global demand for disposable health protective gloves, the disposable health protective gloves market will gradually return to a normal state, and the price will gradually return to a rational range.