Mlily has been deeply involved in the memory foam track and has always attached importance to R&D investment and global production capacity layout, thus laying a solid product and cost advantage. Based on ODM/OEM business, revenue in 2019 has reached 3.83 billion yuan, and Mlily has begun to transform to OBM.

In the past two years, the external environment and internal system of Mlily have undergone significant changes. Driven by the implementation of the second round of anti-dumping and the implementation of the company’s management system, overseas sales and independent brands will usher in a new round of outbreaks. In 2021, the company's net profit is expected to grow by 53% year-on-year to 800 million.

The product matrix is continuously enriched to enhance market competitiveness. With memory cotton products as its core, Mlily has continuously increased product categories with strong synergistic effects such as sofas, electric beds, bedding and has maintained a high growth rate.

After the two-wheeled mattress anti-dumping implementation, it will undertake orders for the elimination of production capacity in Southeast Asia

In 2021, due to the second round of anti-dumping in the United States, about 2.42 million memory foam mattresses will no longer be imported from Southeast Asia (accounting for 28% of US memory foam mattress consumption), and the orders will be rapidly concentrated to enterprises with the capacity layout in the United States.

Mlily has a first-mover advantage in the US market layout and the US factory model has run through. At present, the planned production capacity is about 2.7 billion yuan. The market share is expected to increase from 4% in 2019 to double digits in 2021. At the same time, Mlily is expected to use Mor to open up its own brand sales in the United States.

The penetration rate of memory foam mattress is less than 5%, which is 10 times more space than 50% in the United States

Memory cotton mattresses in the current domestic penetration rate of less than 5% , with the improvement of Chinese understanding of mattresses, memory cotton mattresses market is expected to usher in an explosion and a vast space.

In 2021, it is estimated that the revenue of Mlily's domestic self-built distributor channels is expected to exceed 600 million, and the number of stores will exceed 1,300, which will make it one of the top mattress brands.

After overseas localized procurement, raw material fluctuations have been significantly reduced

At present, the company's overseas production capacity adopts localized procurement (accounting for about 55%),  while the price fluctuation of overseas chemicals is relatively small.

In review, the company's gross profit margin showed stronger resilience compared to the large fluctuations in raw materials, partly from the company's inventory management, and on the other hand from the company's bargaining power.

The scarcity of the company's production capacity under this round of anti-dumping has increased bargaining power, which is expected to support the company's profitability.