Company code: Jiangsu Etern Company Limited(600105) company abbreviation: Jiangsu Etern Company Limited(600105) bond Code: 110058 bond abbreviation: Yongding convertible bond Jiangsu Etern Company Limited(600105)
Non public offering of shares in 2021
Feasibility analysis report on the use of raised funds
(Revised Version)
March, 2002
1、 The use plan of the funds raised in this non-public offering
After deducting the newly invested and proposed financial investment from the six months before the resolution date of the board of directors to the issuance, the total amount of funds raised from the non-public offering of shares shall not exceed 1005 million yuan (including this amount). The net amount of funds raised after deducting relevant issuance expenses is intended to be used for the following items:
Unit: 10000 yuan
No. project name total investment amount of the project proposed amount of raised funds
1. High end submarine cable, land cable and system supporting project 12541161 Shanghai Pudong Development Bank Co.Ltd(600000) 0
2 5g carrier network core optical chips, devices, modules 69015463050000, subsystem R & D and industrialization project
2.1 the project with an annual output of 15 million laser chips and 250, 375, 403 and 205 million devices
2.2 project with annual output of 160000 AWG chips and modules 2135005500000
2.3 data center interconnection transmission system construction project 1012538500000 (DCI equipment)
3. Repayment of bank loan 10 Ping An Bank Co.Ltd(000001) 000000
Total 2044270710050000
The board of directors may adjust the investment amount of the raised funds of the above investment projects with the authorization of the general meeting of shareholders without changing the projects to be invested by the raised funds. If the actual raised funds after deducting the issuance expenses in this non-public offering are less than the total amount of the raised funds of the above projects, the insufficient part of the raised funds of the above projects shall be raised by the company itself. Before the funds raised from this non-public offering are in place, the company can invest with its own funds or self raised funds according to the actual progress of the raised investment project, and replace them according to the relevant procedures after the raised funds are in place.
2、 Feasibility and necessity analysis of the project invested by the raised funds
(I) high end submarine and land cables and system supporting projects
1. Basic information of the project
This project is a high-end submarine cable, land cable and system supporting project. Through the construction of this project, the company plans to further strengthen the technical research and development of marine cables and form the industrialization capacity of 10-35kV and 110500kv marine cables (including ± 80kv-420kv flexible DC marine cables) by relying on years of rich technical accumulation and product development experience in the field of optical cables and cables, Expand the company’s business scope and enhance the company’s comprehensive strength. In addition, the company will also increase the R & D investment in 110500kv high-voltage land cable, further enrich and optimize the existing cable product system and improve the overall profitability of the company.
The total investment amount of the project is 1254116100 yuan, and it is planned to use the funds raised by this non-public offering to invest 600 million yuan.
2. Project implementation subject
The main body of the project is Yongding submarine cable (Nantong) Co., Ltd., a wholly-owned subsidiary of Jiangsu Etern Company Limited(600105) company.
3. Project investment estimate
The estimated total investment of the project is 1254116100 yuan. The specific investment arrangement is as follows:
Unit: 10000 yuan
No. investment category investment scale (%)
1. Land purchase 1000000 7.97
2 construction works 4650000 37.08
3 equipment purchase and installation 3218800 25.67
4. Basic reserve fund 393440 3.14
5 initial working capital 3278921 26.15
Total 12541161 100.00
4. Necessity of project implementation
(1) Enrich and improve the company’s product structure and strengthen the company’s comprehensive strength
As one of the earliest enterprises engaged in the R & D and production of optical fiber and cable products in China, the company has been deeply engaged in the optical fiber and cable industry for many years, paid great attention to the industrial technology development trend and market development opportunities, and constantly enriched and expanded the application fields of products. At present, it has gradually developed from the initial single communication cable manufacturing to covering special electrical connecting wires, water blocking cables Professional cable suppliers in many fields such as sensor cable with air duct and special high-temperature automobile harness.
At present, with the continuous improvement of the strategic position of the marine economy in China’s economic development, offshore wind power, as an important part of the marine economy, is developing rapidly driven by the dual factors of policy and market, and the installed capacity and investment scale show a sustained and stable growth trend. The vigorous development of offshore wind power industry has laid a good market environment for the development of submarine cable and other upstream related industries, and the industry has ushered in important development opportunities. In this context, through the implementation of this project, the company plans to increase the R & D investment in cable and high-voltage land cable related technologies, introduce advanced test and production equipment, establish an independent and controllable R & D and production system of submarine cable and high-voltage land cable technologies, further enrich and improve the company’s product structure, grasp market development opportunities and expand the company’s business field, Consolidate and strengthen the comprehensive strength of the company.
(2) Optimize the company’s resource allocation and improve the company’s profitability
At present, the company’s power transmission industry has formed an industrial pattern of coordinated development in many fields. After years of continuous development and innovation and experience summary, the company has accumulated rich technical reserves and extensive customer resources in the above fields. The implementation of this high-end submarine cable, land cable and system supporting project can give full play to the resource advantages of the company in the power transmission industry, carry out the R & D and industrialization promotion and application of submarine cable and high-voltage land cable related technologies on the basis of existing technologies and customers, maximize the value of the company’s core resources, increase profit growth points and improve the overall profitability of the company. At the same time, the implementation of the project will further enrich the company’s technical reserves, provide technical support for other businesses, realize the coordinated development between different businesses and promote the healthy and sustainable development of the company.
5. Feasibility of project implementation
(1) National policies encourage and support offshore wind power and submarine cable industries
As an important part of the marine economy, offshore wind power and its related industries are of great significance in promoting China’s Shanxi Guoxin Energy Corporation Limited(600617) transformation and promoting the development of marine economy. The state has issued a series of policies to encourage the industry to become bigger and stronger. In 2015, the State Council issued made in China 2025, which clearly proposed to take marine equipment as one of the key areas and listed it as an important part of China’s strategic emerging industries, the key direction of high-end equipment manufacturing industry and an important foundation and support for the country’s implementation of the marine power strategy.
In 2021, the State Council issued the guiding opinions on accelerating the establishment and improvement of a green and low-carbon circular development economic system, emphasizing the need to increase the proportion of renewable energy utilization, vigorously promote the development of wind power and photovoltaic power generation, and develop hydropower, geothermal energy, marine energy, hydrogen energy, biomass energy and photothermal power generation according to local conditions.
The above policy documents have laid a good policy environment for the development of China’s offshore wind power and submarine cable industry, and pointed out a clear direction for the technical development of the industry, which is conducive to promoting the healthy, sustainable and rapid development of China’s offshore power equipment industry, and will also lay a good policy foundation for the smooth implementation of the project.
(2) Rich technology R & D reserves and talent reserves can support the smooth implementation of the project
The company has always regarded technology R & D as the core driving force of enterprise development. As a national technological innovation demonstration enterprise and a national intellectual property advantage enterprise, the company has innovation platforms such as national enterprise technology center, National Postdoctoral research workstation and national CNAs recognized laboratory. The continuous high-level R & D investment ensures the company’s sustainable innovation ability, It is the key for the company to obtain market competitive advantage.
After years of technology research and development accumulation, the company has rich technical reserves in the preparation of cables, special cables, superconducting power and other products, and has 31 patents and a number of non patented technologies, which has laid a solid technical foundation for the development of submarine cables and high-voltage land cables of the project. In addition, the company has rich talent reserves, has a mature and stable project R & D team, and has rich experience in R & D and industrial application of special cable technology. At the same time, in order to ensure the smooth implementation of the project, the company will also expand the project team by combining introduction and training. While increasing the number of talents in the existing professional direction, the company will also introduce talents in other professional directions such as process, material structure analysis and testing. Therefore, the rich technology R & D reserves and talent reserves have laid a solid foundation for the smooth implementation of the project.
(3) The company’s good brand reputation and rich customer resources provide market guarantee for the project construction
The company has been deeply engaged in the field of optical fiber and cable for many years, has rich industry experience, adheres to the enterprise spirit of “carrying faith in good faith, never-ending”, constantly changes and innovates the business philosophy, and adheres to the integrity attitude of being responsible for society, enterprises, customers and employees. It has created a good corporate image. With large production scale and stable product quality The perfect after-sales system has been rated as “top 10 enterprises with the most comprehensive competitiveness in China’s optical communication” and “top 10 enterprises with the most competitiveness in China’s optical fiber and optical cable” by the Asia Pacific Optical Communication Commission and the Network Telecommunications Information Research Institute for 11 consecutive sessions. It has a certain scale advantage and is in a leading position in the industry.
In addition, the company also maintains good cooperative relations with many large wind power investment enterprises. Its main customers include China Huaneng Group Corporation, China Datang Group Corporation, China Huadian Group Corporation, China Guangdong Nuclear Power Corporation, national energy group Guohua Power Company, China Resources Power Holding Co., Ltd. Xinjiang Goldwind Science And Technology Co.Ltd(002202) , Chongqing haizhuang CNOOC, PetroChina, State Grid, China Southern Power Grid, etc. The above customers have good reputation, large assets and business scale and strong strength, which has played an important role in promoting the development and growth of the company. At the same time, it has also strengthened the brand influence of the company in the industry and laid a good market foundation for the promotion and application of submarine cable and high-voltage land cable products. To sum up, the company’s high-quality and stable customer resources and good brand reputation will become an important guarantee for the smooth implementation of future projects.
6. Project construction cycle
The planned construction period of the project is 2 years. The company will dynamically adjust the implementation progress of the project according to the actual situation.
7. Economic benefit evaluation of the project
Through calculation, the payback period (including construction period and after tax) of the project is 7.64 years, and the internal rate of return (after tax) is 21.48%, which has good economic benefits.
8. Items involved in the project for approval
As of the date of issuance of this report, the relevant procedures related to the filing and environmental impact assessment of the project are being handled.
(II) research and development and industrialization of 5g bearer network core optical chips, devices, modules and subsystems
1. Basic information of the project
The R & D and industrialization project of 5g carrier network core optical chips, devices, modules and subsystems is divided into three subprojects: the project with an annual output of 15 million laser chips and 2.5 million devices, and the project with an annual output of AWG
160000 chips and modules project and data center interconnection transmission system construction project (DCI equipment). Through the construction of this project, the company plans to improve its comprehensive strength in the research and development of 5g bearer network core chips, devices, modules and subsystems, improve the layout of the company’s optical communication industry chain, and meet the needs of the company’s future development.
The total investment amount of the project is 690154600 yuan, and it is planned to use the funds raised from this non-public offering to invest 305 million yuan.
2. Project implementation subject
The three subprojects of the project are implemented by the company’s holding subsidiaries respectively, as shown in the table below:
Serial number
