With the spread of the Coronavirus and the efforts to contain the same we understand that you may have a lot of questions as well as concerns regarding the current situation in China and how it affects production and deliveries.
We hope the following can help to explain what the current situation is.
The help contain the spread of the Coronavirus, the authorities in Hangzhou and Yuhang pushed back the end of CNY holiday to February 10th.
Although we are now open, per current regulation, everybody back to Hangzhou needs to be quarantined an additional 14 days before back to work. This means that the vast majority of our employees will not be allowed back to the factory until February 24th if they came back to Hangzhou on our around the 10th. In general the requirement is the same all over the China.
The real unknown issue is how many laborers will come back now or wait to come back until the quarantine restrictions are removed or shortened. Everyone is in the same boat and on a whole the Chinese economy is very limited at this time.
The bottom line at this time is that there is no labor not just for production but also for the entire supply chain. While we may able to produce there is limited labor and material. As of today most of the subcontractors are still closed and transportation services will not open until February 17th.
We believe that it will take 2-3 weeks to start to see some progress in the movement of people and goods.
As mentioned, our offices reopened on February 10th. Vendors will fully reopen on the 15th. Transportation services will resume on the 17th.
We hope you can understand that most pressing issue is the future availability of labor. Under normal circumstances we would see roughly an immediate return of 70-80% (700-800 people) of our production after CNY. Again, unfortunately, due to this unprecedented situation no one knows how the labor force will react. Again, this affects not only production but also the entire supply chain.
Thanks for your kind understanding and support.
Hangzhou Sejoy Electronics &Instruments Co., ltd.
Joytech healthcare Co.,Ltd
February 15, 2020