Securities code: Hubei Yihua Chemical Industry Co.Ltd(000422) securities abbreviation: Hubei Yihua Chemical Industry Co.Ltd(000422) Announcement No.: 2022022 Hubei Yihua Chemical Industry Co.Ltd(000422)
Announcement on the investment and construction of 550000 tons / year ammonia alcohol project the company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
1、 Overview of investment projects
Hubei Yihua Chemical Industry Co.Ltd(000422) (hereinafter referred to as “the company”) deliberated and adopted the proposal on investment and construction of 550000 tons / year ammonia alcohol project at the third meeting of the 10th board of directors. In order to strengthen the industrial foundation of synthetic ammonia, accelerate technological upgrading and transformation, and implement the national requirements for energy conservation and environmental protection, the company plans to take Hubei Xinyi Chemical Co., Ltd. (hereinafter referred to as “Xinyi chemical”) as the main project and invest 356786 million yuan to build a 550000 t / a ammonia alcohol project in tianjiahe area of yaojiagang chemical park, Yichang City (hereinafter referred to as “the project”). The proposal still needs to be submitted to the general meeting of shareholders of the company for deliberation. This investment does not constitute a connected transaction, nor does it constitute a major asset reorganization as stipulated in the administrative measures for major asset reorganization of listed companies.
2、 Basic information of investment projects
1. Project construction background:
The company has a synthetic ammonia production unit with an annual output of 550000 tons in Yiting chemical park, Yichang City, Hubei Province. The unit is a supporting unit for the production of chemical fertilizer and chemical products in Yichang factory of the company. The synthetic ammonia and methanol produced are used for the production of diammonium phosphate, pentaerythritol and other products in Yichang factory of the company. In response to the national Yangtze River protection policy, the company shut down 220000 tons of synthetic ammonia (capacity reserved, to be relocated) from 2016 to 2017, and the 330000 tons of synthetic ammonia plant still in operation must be relocated before the end of 2025. The above ammonia synthesis units that have been shut down for relocation and are in operation have backward process technology and high energy and material consumption, which are the main factors affecting the manufacturing cost of chemical fertilizer and fine chemical products in the past and now. It is necessary to take advantage of the relocation opportunity and use the advanced technology of the industry for transformation and upgrading.
According to the relevant requirements of the superior competent department, the company’s annual output of 660000 tons of diammonium phosphate and 100000 tons of insurance powder located in Yichang Yiting chemical park must be relocated to tianjiahe area of yaojiagang chemical park, Yichang City by the end of 2025. Meanwhile, the company has built trimethylolpropane unit, photoinitiator and supporting raw material projects in the above-mentioned Park, is building biodegradable material projects, plans to build iron phosphate, nickel sulfate and other projects, and needs to build large-scale ammonia alcohol units. In order to ensure the supply of synthetic ammonia, methanol and other products and heat required for the production of chemical fertilizer and chemical plants in yaojiagang Park, the company plans to build a technical transformation and relocation project with an annual output of 550000 tons of ammonia and alcohol.
2. Project name: clean coal pressurized gasification polygeneration technology transformation, relocation and upgrading project
3. Basic information of the project subject: the project is proposed to be undertaken by Hubei Xinyi Chemical Co., Ltd., a wholly-owned subsidiary of the company. The legal representative of the company is Zhu Yue, with a registered capital of 10 million yuan. Its domicile is No. 5030, No. 57-5, development avenue, Yichang District, China (Hubei) free trade zone. Its business scope includes: chemical products, fine chemical products Production and sales of new chemical materials (excluding dangerous explosive chemicals and varieties restricted by the state); Import and export of goods and technologies (except for import and export projects prohibited, restricted and designated by laws and administrative regulations) (for projects that must be approved according to law, business activities can be carried out only with the approval of relevant departments) + +.
4. Project construction content: the main products of the project are 460000 T / a liquid ammonia and 90000 T / a methanol, and the by-product is about 20000 t / a sulfuric acid.
5. Investment amount and income of the project: the total investment of the project is 356786 million yuan, the sales revenue is expected to be 210441 million yuan / year, the total profit is expected to be 352.8 million yuan / year, and the internal rate of return of the project is 15.19% (before tax) and 11.16% (after tax).
6. Project construction period: expected to be 24 months.
7. Source of funds: self raised by the company.
8. Project feasibility analysis:
(1) Industrial policy and process: the project complies with the provisions of “3. Development and application of briquette and coal water slurry technology” in the encouraged “III. coal” in the Guiding Catalogue for industrial structure adjustment (2019 version). The energy consumption level of synthetic ammonia and methanol of the project products can reach the benchmark level value in the benchmark level and benchmark level of energy efficiency in key areas of high energy consuming industries (2021 version) (fgy [2021] No. 1609) issued by the national development and Reform Commission and other departments, which belongs to the advanced level of the industry. The project adopts advanced, mature and reliable process technology, with easy availability of raw materials, low energy consumption, perfect safety, health, environmental protection and other measures, which meets the conditions for the promotion and implementation of advanced coal gasification energy-saving technology, national industrial policy, national industrial planning and energy conservation and emission reduction requirements. (2) Supporting facilities of land and public works: the proposed construction project is located in tianjiahe area of yaojiagang chemical park, Yichang. This area is a professional chemical industry base with the chemical industry as the main body. The supporting facilities of public works such as water and electricity are fully guaranteed and the construction conditions are good.
(3) Raw materials, product market and transportation: raw coal, fuel coal and auxiliary materials required by the project need to be purchased; The project site has developed water and land transportation and convenient transportation.
(4) Personnel, technology and management: the company has been engaged in the chemical industry for a long time, and has a group of personnel with rich management and technical experience, which can meet the requirements of the project.
9. Market prospect of the project: the main products of the project, methanol and synthetic ammonia, are all for the company’s own use, without external sales, and the product consumption is stable and reliable. Among them, methanol is used in the downstream pentaerythritol and trimethylolpropane projects of the company; Liquid ammonia is used in the downstream ammonium phosphate project of the company.
3、 Purpose of project investment, existing risks and impact on the company
1. Investment purpose and impact on the company: the project is conducive to the technical transformation and upgrading of the company’s synthetic ammonia industry, ensure the supply of raw materials for the company’s end products, and implement the national requirements for energy conservation and environmental protection. The project conforms to the company’s industrial planning and development strategy. After completion and operation, it will have a positive impact on the company’s future financial situation and operating results.
2. Possible risks of the project: the price change of main raw materials of the project may lead to the uncertainty of project benefits.
4、 Documents for future reference
Resolution of the third meeting of the 10th board of directors of the company.
It is hereby announced.
Hubei Yihua Chemical Industry Co.Ltd(000422) board of directors
March 11, 2022
