Successfully acquired Jiangsu Hailun Petrochemical Co., Ltd. (hereinafter referred to as ” After “Hailun Petrochemical”), Sanfangxiang (600370)’s main business changed, and the company also started to expand its new main business.
Investment in the construction of PTA industrial chain project
In the evening of September 28 Sanfangxiang announced that in order to expand the scale of production and operations, enhance the overall competitiveness of the industry, consolidate and expand industry influence, promote industrial upgrading, and develop and improve its own “PTA-bottle grade polyester chips” integrated industrial chain layout, Through the rational use of existing resources, we can achieve energy conservation and emission reduction, cost reduction and efficiency improvement, and technology upgrading to enhance the overall profitability and risk resistance of listed companies. This will also be matched with the company’s proposed bottle-grade polyester chip expansion project to realize industrialization Due to the synergistic effect between the upstream and downstream of the chain, the company’s wholly-owned subsidiary Jiangsu Hailun Petrochemical Co., Ltd. (hereinafter referred to as “Hailun Petrochemical”) plans to invest in the construction of a PTA technological transformation and expansion project with an annual output of 3.2 million tons. The total investment of the project is expected to be 4.515 billion yuan. Funding sources Including but not limited to the company’s own funds, bank borrowings or other financing methods.
After calculation, the financial internal rate of return of the project investment after income tax is 25.71%, the financial net present value after income tax is greater than 0, and the investment recovery period after income tax of the project is 5.58 years (including the construction period 2 years).
Sanfangxiang also announced that night that the company’s wholly-owned subsidiary Jiangsu Xingye Plastics Co., Ltd. (hereinafter referred to as “Xingye Plastics”) plans to invest in the construction of an annual production capacity of 3 million tons of bottles. Grade polyester chip expansion project, the project is expected to have a total investment of 3.861 billion yuan, and the funding sources include but are not limited to the company’s own funds, bank borrowings or other financing methods.
After calculation, the financial internal rate of return of the project investment after income tax is 19.95%, the financial net present value after income tax is greater than 0, and the investment recovery period after income tax of the project is 6.37 years (including the construction period 2 years).
The company stated that according to its development strategy, in order to further enhance the integrated layout of the company’s “PTA-bottle grade polyester chips” industrial chain, it has cooperated with Jiangsu Xingye Plasticizing Co., Ltd. to build a bottle factory Level polyester chip expansion project is supported to achieve synergy between the upstream and downstream of the industrial chain. At the same time, in order to expand the scale of production and operation, enhance the comprehensive competitive advantage of the overall industry, consolidate and expand industry influence, promote industrial upgrading, and further enhance the company’s PTA production capacity advantages and The cost advantage will enhance the company’s overall competitiveness and sustainable profitability. The company plans to invest in the construction of the “3.2 million tons of PTA technical transformation and expansion project with an annual output of 3.2 million tons per year” through its subsidiary Hailun Petrochemical. Expansion project to produce 3 million tons of bottle-grade polyester chips.”
After the company implemented major asset reorganization, PTA became one of the company’s leading products. The implementation of this project will introduce internationally advanced PTA production technology and adopt mature and advanced energy-saving technology and energy-saving equipment, which will help improve the labor productivity and product quality of the project, and can effectively reduce the unit material consumption, energy consumption and other production costs of the company’s PTA products. , expand the profit margin of the company’s PTA products, enhance the overall profitability of listed companies, and promote the company’s sustainable and healthy development.
The main business of the spinning workshop has changed
Sanfangxiang previously With its main business of printing, dyeing and finishing, it is one of the top ten enterprises in the domestic printing and dyeing industry. According to the company’s announcement in June 2020, it plans to issue shares at a price of 7.35 billion yuan to purchase 100% of the equity of Hailun Petrochemical held by Sanfangxiang Group, Sanfangxiang International Trade, Shanghai Youchang, and Shanghai Huma. After this transaction is completed, Hailun Petrochemical will become a wholly-owned subsidiary of the listed company. At the same time, it plans to raise supporting funds of no more than 800 million yuan from a non-public issuance of stocks from no more than 35 investors.
On the evening of September 28, Sanfangxiang issued an announcement on the change of registered capital, company name and business scope, saying that in view of the transfer of the company’s subject company Hailun Petrochemical for this major asset restructuring, And the registration of new shares has been completed. The total number of shares of the company has increased from 797,244,230 shares to 3,657,166,407 shares, and the registered capital has increased from 797,244,230 yuan to 3,657,166,407 yuan. The company plans to change its registered capital.
After the company’s major asset reorganization, Hailun Petrochemical became a wholly-owned subsidiary of the company. The company held 100% of the equity of Hailun Petrochemical, and Hailun Petrochemical and its subsidiaries were included in the scope of the company’s consolidation. The operating income and asset size of Hailun Petrochemical and its subsidiaries account for more than 85% of the company’s overall operating income and asset size. The company’s main business has changed from the production and sales of textiles, printing and dyeing, PBT engineering plastics, and thermoelectricity to bottle-grade polyethylene. The main business is the production and sales of ester chips and PTA, supplemented by the production and sales of textiles, printing and dyeing, PBT engineering plastics, and thermoelectricity.
In order to adapt to the company’s operation and business development needs after this major asset reorganization, so that the company’s business scope can more comprehensively, objectively and accurately match the company’s business scope, the company plans to change Business Scope.
At the same time, in order to cooperate with the company’s strategic planning, to further enhance the company’s brand image and corporate value, promote market expansion, promote the company’s sustainable development and meet the needs of the company’s business development, the company plans to change Company name and English name.
The change in the main business of Sanfang Lane is also in the context of the current development difficulties of textile printing and dyeing.
On August 18, the company announced that��Due to the continued sluggish market demand for textile consumer goods at home and abroad, the textile industry has been greatly impacted. Some upstream and downstream manufacturers have insufficient operating rates. At the same time, textile exports continue to decline. The company’s spinning products are mainly exported directly or indirectly after being made into gray cloth by downstream customers. , downstream orders are difficult to support the normal production of the factory, and the company’s spinning business has been greatly affected. At the same time, the compact spinning production workshop was built early and the production scale is small. After many years of operation, the energy consumption of the equipment is relatively high and the competitiveness is not strong. Affected by the above factors, the production and operation of the compact spinning production workshop has been greatly affected this year. The income of the spinning business has dropped significantly, the profit margin has been further compressed, and losses have occurred. From January to June 2020, the sales volume of cotton yarn in the compact spinning workshop was 1050.22 tons, a year-on-year decrease of 38.63 %, sales revenue was 25.1683 million yuan, a year-on-year decrease of 42.77%, and gross profit was -2.9886 million yuan, a year-on-year decrease of 153.90%. Against this background, if the company’s compact spinning production workshop continues production, losses will further expand. Taking into account the market environment and the company’s operating costs, the company predicts that the compact spinning production workshop will be difficult to resume normal production and turn around losses in a short period of time. In order to avoid further losses, the company decided to suspend production in the compact spinning production workshop. </p
