Blue Sail Medical: Both Glove Business Categories Achieve Full Production and Full Sales At 25 Billion Units of Annual Production Capacity Each, Glove Prices Significantly Rise Compared With End-2025

Blue Sail MedicalOn June 1st, in response on the investor interaction platform, the company stated that its glove business has undergone unprecedented and significant industry fluctuations since 2020. Currently, the company’s two major categories of gloves—nitrile gloves and PVC gloves—each have an annual production capacity of 25 billion units, operating at full capacity with full sales. Glove prices have also significantly increased compared to the end of 2025. The market supply and demand relationship has undergone a significant positive change, which is favorable to leading Chinese manufacturers, and historical inventory pressure has been significantly alleviated. The increase in inventory write-downs in 2025 was mainly due to two reasons. First, the company, based on the prudence principle of the Accounting Standards for Business Enterprises, regularly conducts impairment tests on inventories. Although prices have rebounded from their lowest point, there remains a difference between the historical cost and the net realizable value of some inventory items, necessitating the recognition of corresponding inventory write-downs based on accounting estimates. Second, in 2025, the company conducted reasonable impairment tests and scrapped certain fixed assets of the Health Protection Division, and the impairment losses from these assets were also reflected in the financial statements. These accounting treatments are normal measures for the company’s continuous optimization of its asset structure, aiming to more truthfully and fairly reflect the company’s asset status and operating results. From 2025 to date, the company has taken a series of substantive measures to improve the profitability of its glove segment, including introducing Thai industrial investors to address upstream energy shortages, implementing multiple technical improvements, and strategically locking in raw material costs through advance procurement. Currently, the company’s glove business costs have returned to a leading industry level, and it is foreseeable that the glove business will become the segment with the greatest performance recovery potential for the company in 2026.