Following the forecast that the performance of 2021 increased significantly year-on-year, Jiangsu Eastern Shenghong Co.Ltd(000301) ( Jiangsu Eastern Shenghong Co.Ltd(000301) ) made another big move, announced the employee stock ownership plan on March 11, and disclosed that the controlling shareholders and employees of affiliated enterprises planned to increase their holdings. According to the announcement, the total amount of the two will reach 4.7 billion yuan.
The annual rate of return of large-scale equity incentive employees shall not be less than 8%
On March 11, Jiangsu Eastern Shenghong Co.Ltd(000301) announced the second phase of the employee stock ownership plan (Draft). The initial total amount of funds to be raised by the employee stock ownership plan shall not exceed 3.26 billion yuan, of which the self raised funds of employees shall not exceed 1.63 billion yuan. It is planned to be implemented by establishing special financial products, securities margin trading of securities companies, asset management / trust products and other ways permitted by laws and regulations, The ratio of financing funds to self raised funds shall not exceed 1:1, that is, the financing amount of financial institutions shall not exceed 1.63 billion yuan.
Based on the closing price of Jiangsu Eastern Shenghong Co.Ltd(000301) shares of 15.84 yuan / share on March 10, 2022, the maximum number of Jiangsu Eastern Shenghong Co.Ltd(000301) shares that can be purchased and held by the ESOP is 2058081 million shares, accounting for 3.46% of the total existing share capital of the company.
It is worth noting that Jiangsu Eastern Shenghong Co.Ltd(000301) said in the announcement that Shenghong technology, the controlling shareholder of the company, or its parent company, intends to provide joint and several guarantees for the financing principal and interest of securities companies, banks and other financial institutions, and provide a guarantee for employees’ self raised funds and expected income. After deducting relevant taxes, Ensure that the annual rate of return of the part invested by employees is not less than 8% based on simple interest.
The release of this ESOP is conducive to Jiangsu Eastern Shenghong Co.Ltd(000301) attracting and retaining excellent management talents and business backbone, improving employee cohesion and company competitiveness, improving the company’s long-term and effective incentive and restraint mechanism, and highlighting the company’s confidence in future development.
In addition, some employees of Shenghong technology, the controlling shareholder of the company, and its affiliated enterprises (except listed companies and holding subsidiaries of listed companies) plan to increase their holdings of shares of listed companies through secondary market purchase. The shareholding increase is planned to be implemented through the establishment of special financial products, margin trading of securities companies, asset management / trust products and other ways permitted by laws and regulations. The proportion of financing funds to self raised funds shall not exceed 1:1, and the total amount of funds raised shall not exceed 1.468 billion yuan.
The net profit in 2021 is expected to increase significantly, and the two wheel drive ensures the momentum of long-term development
In fact, Jiangsu Eastern Shenghong Co.Ltd(000301) has been on the fast track of development through the acquisition of sierbang petrochemical and the investment and construction of large-scale refining and chemical projects. According to the performance forecast for 2021, Jiangsu Eastern Shenghong Co.Ltd(000301) is expected to realize a net profit attributable to the parent company of 4.1-5 billion yuan in 2021, with a year-on-year increase of 435% – 552%, of which the non recurring profit and loss attributable to the shareholders of the listed company is expected to increase by 2.7-3.4 billion yuan.
According to the announcement, the production capacity of EVA photovoltaic resin produced by sierbang was stable at more than 200000 tons / year, the differentiated functional chemical fiber project with an annual output of 200000 tons of ganghong fiber and the pet regenerated fiber project with an annual output of 60000 tons of China perch technology were completed and put into operation in the second half of 2020, increasing the profit contribution year-on-year.
The market is also optimistic about the long-term growth of Jiangsu Eastern Shenghong Co.Ltd(000301) performance. The Guosen Securities Co.Ltd(002736) research report points out that the large-scale refining project will be put into operation soon, which will be the core of the performance growth of Jiangsu Eastern Shenghong Co.Ltd(000301) in the next two years. In addition, three “million ton” projects will also lead the long-term development of the company.
At present, Jiangsu Eastern Shenghong Co.Ltd(000301) is stepping up the construction of a world-class large platform for raw material guarantee of new energy and new material industrial base based on the 16 million T / a refining and chemical integration project under construction. As the production capacity of Shenghong refining and chemical 16 million tons refining and chemical integration project climbs steadily in 2022, Jiangsu Eastern Shenghong Co.Ltd(000301) will take the polyester chemical fiber industry as the starting point, improve the business model of the whole industry chain from “one drop of oil” to “one silk”, and continue to plan the downstream production capacity of refining and chemical industry, layout the subdivision track of fine chemicals, with full growth momentum.
On the other hand, Shenghong group has started to build three “megaton” projects, namely, megaton EVA photovoltaic new energy material project, megaton acrylonitrile new material project and megaton green degradable material project, in order to build a world-class new energy and new material industry cluster. Among them, the 260000 T / a acrylonitrile (III) production line in Sri Lanka has been put into operation in December 2021, and its overall acrylonitrile production capacity has increased from 520000 T / A to 780000 T / A, ranking first in China, further consolidating Sri Lanka’s leading position in acrylonitrile industry. The propane industrial chain project will also become the first comprehensive implementation project in the “three megaton industrial projects” plan of Shenghong group, which is of great significance to promote the follow-up “chain extension” to develop new energy, new materials, electronic chemistry, biotechnology and other strategic emerging industries and help achieve the “double carbon” goal.
At present, Jiangsu Eastern Shenghong Co.Ltd(000301) has held the dual power engine of large refining and chemical + million ton project, and is standing at a new starting point of strategic transformation. 2022 is not only the year when the large-scale refining and chemical project is put into operation, but also the first year of coordinated development after Jiangsu Eastern Shenghong Co.Ltd(000301) merger with Sri Lanka. The synergy between the two will accelerate Jiangsu Eastern Shenghong Co.Ltd(000301) to form a “1 + n” new pattern of low-cost core raw material platform + diversified industrial chains such as new energy and new materials, and is also expected to help Jiangsu Eastern Shenghong Co.Ltd(000301) performance continue to grow at a high speed.
