Stock abbreviation: Jiangsu Yuxing Film Technology Co.Ltd(300305) Stock Code: Jiangsu Yuxing Film Technology Co.Ltd(300305) Jiangsu Yuxing Film Technology Co.Ltd(300305)
JiangSu YuXing Film Technology Co., Ltd.
8-8 Tongzi Economic Development Zone, Zhongzhou City, Jiangsu Province
Summary of prospectus for issuing convertible corporate bonds to unspecified objects on GEM
Sponsor (lead underwriter)
(18 / F, investment Plaza, No. 23, Yanling West Road, Changzhou City, Jiangsu Province)
April, 2002
Statement
The company and all directors, supervisors and senior managers promise that there are no false records, misleading statements or major omissions in the prospectus and other information disclosure materials, and bear corresponding legal liabilities for their authenticity, accuracy and completeness.
The person in charge of the company, the person in charge of accounting and the person in charge of the accounting organization shall ensure that the financial and accounting materials in the prospectus are true and complete.
Any decision or opinion made by the CSRC and the exchange on this issuance does not indicate that they guarantee the authenticity, accuracy and integrity of the application documents and the information disclosed, nor do they indicate that they make substantive judgment or guarantee on the profitability, investment value of the issuer or the income of investors. Any statement to the contrary is a false statement.
According to the provisions of the securities law, the issuer shall be responsible for the changes in the operation and income of the issuer after the securities are issued according to law. Investors independently judge the investment value of the issuer, make investment decisions independently, and bear the investment risks caused by changes in the operation and income of the issuer or changes in the price of securities after the issuance of securities according to law.
Tips on major issues
The company specially reminds investors to pay attention to the following major matters or risk factors, and carefully read the relevant chapters of this prospectus.
1、 Special risk tips
The company urges investors to carefully read the full text of “risk factors” in this prospectus and pay special attention to the following risks.
(I) risks of new capacity digestion
At present, the company’s capacity utilization rate, production and marketing rate and gross profit margin remain at a high level, and the existing capacity can not fully meet the market demand. Considering that the new functional polyester film production capacity construction project involves a series of processes such as design planning, obtaining production land, project filing / approval, plant construction, equipment procurement and commissioning, and the project construction cycle is long, the company has made a forward-looking layout. After the raised investment project is put into operation, it is mainly used to expand the existing capacity scale and reserve capacity construction in advance, which meets the needs of the company’s business development.
This raised investment project is an investment decision made based on the industrial policy, market environment, industry development trend and other factors in recent years, combined with the company’s analysis and judgment on the future development of the industry, its own business situation and product competitive advantage. Although at present, the company’s capacity utilization rate, production and marketing rate and product gross profit margin are maintained at a high level, and has corresponding technical reserves. The products have competitive advantages, and the types of products produced by the production line can also be adjusted and switched according to the changes of market demand, due to the completion and operation of the raised investment project takes a certain time, if there are major adverse changes in subsequent industrial policies, market demand and competition pattern, Or the company’s market development ability is insufficient and the growth rate of market space is lower than expected, which may affect the economic benefits of the raised investment project and the overall operating performance of the company.
The company has a capacity of 120000 tons of functional polyester film. After the completion of the “new high-end functional polyester film project with an annual output of 500 million square meters” and “new polyester film production line project with an annual output of 28000 tons of special Cecep Solar Energy Co.Ltd(000591) backing materials”, the company will add 103000 tons of functional polyester film capacity. During the reporting period, the average annual compound growth rate of the company’s total product sales was 23.56%. According to the sales volume forecast from January to September 2021, the total product sales volume in 2021 was 118000 tons. Assuming that the sales volume increased according to the above average annual compound growth rate, the sales volume forecast from 2022 to 2025 were 146000 tons, 180000 tons, 222000 tons and 274000 tons respectively. The project is expected to be completed by the end of 2022. It will be gradually produced in 2023 and reach full capacity in 2024. In the stage of gradual production, it is expected to release 80% of the new capacity, that is, 82400 tons. After the project is fully completed in 2024, the company’s capacity will increase from 120000 tons to 223000 tons, of which there is a gap between the company’s capacity and the predicted sales volume of 22400 tons in 2023, The company may face the risk that the new capacity cannot be digested.
(II) risk that the project invested with raised funds cannot realize the expected income
The raised investment project is the expansion of existing production capacity and product upgrading. It is the strategic layout of the company in the functional polyester film industry according to the development trend of the polyester film industry. Although the issuer has reserved relevant talents, accumulated relatively mature technology and experience in the functional polyester film business, and conducted careful and sufficient investigation, demonstration and benefit calculation on the industry development and market demand of the raised investment project, since the project analysis and calculation are based on the current market environment, industry development trend and other factors, during the implementation of the raised investment project, The company is still faced with many uncertain factors such as changes in market demand, operating costs and construction investment. After the completion of this raised investment project, if the market price of photovoltaic glass drops sharply and drives the rapid reduction of the cost of double-sided double glass modules in downstream photovoltaic modules, the double-sided double glass modules will form a certain market substitution for the single-sided modules and double-sided single glass modules used in the company’s products, which will affect the sales revenue and profit of the company’s photovoltaic polyester film, and the company may face the risk of benefits not reaching the expected level.
On this basis, the company further conducted sensitivity analysis on the impact of changes in key parameters such as product sales price, operating cost and fixed asset investment on internal rate of return and investment payback period in the raised investment project. The specific situation is shown in the table below:
1. Raised investment project I
Change range of change factors after tax internal income after tax financial net present value after tax investment payback period
Rate (10000 yuan) (year)
Existing scheme 0.00% 24.19% 4312463 5.57
5.00% 28.46% 60,091.33 5.09
selling price
-5.00% 19.66% 26,157.94 6.24
5.00% 20.87% 30,751.60 6.05
Operating costs
-5.00% 27.39% 55,497.67 5.20
Change range of change factors after tax internal income after tax financial net present value after tax investment payback period
Rate (10000 yuan) (year)
5.00% 22.97% 40,133.64 5.72
Investment in fixed assets
-5.00% 25.51% 46,115.63 5.42
2. Investment and raising Project II
Change range of change factors after tax internal income after tax financial net present value after tax investment payback period
Rate (10000 yuan) (year)
Existing scheme 0.00% 31.01% 1973861 4.24
Sales price 5.00% 37.07% 2655135 3.80
-5.00% 24.75% 12,925.87 4.87
Operating cost 5.00% 26.30% 1468045 4.71
-5.00% 35.66% 24,796.77 3.88
Fixed asset investment 5.00% 29.81% 1901456 4.34
-5.00% 32.28% 20,462.66 4.14
It can be seen from the above table that the benefits of the products of this raised investment project are affected by the fluctuations of its sales price, operating cost and fixed asset investment. If there is a sharp decline in sales price, an increase in operating cost and a sharp rise in fixed asset investment in the future, and the company fails to respond in a timely and effective manner, it will have an adverse impact on the financial return of this raised investment project.
(III) risk of decline in the company’s operating performance caused by new depreciation and amortization in the future
The capital expenditure of the project invested by the raised funds of the company is large, mainly including construction engineering, equipment purchase, land use fee, etc. after the construction of the project invested by the raised funds is completed, the company’s fixed assets and intangible assets will increase significantly. The maximum newly added depreciation and amortization amount in one year during the operation period of the raised investment project is 822839 million yuan. Assuming that the raised investment projects are successfully implemented, the comparison between the newly added depreciation and amortization amount of the company and the company’s operating revenue and net profit in the future is as follows:
Project 2021e 2022e 2023e 2024e 2025e
The newly added depreciation and amortization accounts for – 0.33%, 8.23%, 8.23% and 8.23% of the existing operating revenue
The newly added depreciation and amortization accounts for – 2.13%, 52.68%, 52.68% and 52.68% of the existing net profit
The proportion of newly increased depreciation and amortization in – 7.55%, 6.04% and 6.04% of newly increased operating income
The newly increased depreciation and amortization accounts for – 47.29%, 33.67% and 33.67% of the newly increased net profit
The newly added depreciation and amortization amount accounts for – 0.33%, 3.94%, 3.48% and 3.48%
2022e project 2022e
Proportion of estimated operating income
The newly added depreciation and amortization amount accounts for – 2.13%, 24.92%, 20.54% and 20.54% of the estimated net profit. Note 1: the existing operating revenue and net profit are calculated according to the operating revenue and net profit of 2020 respectively, regardless of the income growth and net profit growth of the company’s existing business; Note 2: the new revenue and net profit in the above table are the forecast of this raised investment project. The expected operating revenue is the sum of the existing operating revenue and the new operating revenue, and the expected net profit is the sum of the existing net profit and the new net profit, excluding the relevant forecast of the coating project; Note 3: the above forecast data does not constitute the company’s profit forecast, nor does it constitute a commitment to investors.
With the completion of the construction of the raised investment project and the release of production capacity, the raised investment project will realize the income as expected. The company’s new operating income and net profit can cover the impact of depreciation and amortization brought by the new assets. However, given that it takes a certain time for the project to be completed and generate benefits, the new depreciation and amortization may have an adverse impact on the company’s operating performance. At the same time, if the raised fund investment project cannot achieve the expected benefits as planned, The depreciation and amortization of new assets will also have a certain adverse impact on the company’s performance.
(IV) risk of decline in comprehensive gross profit margin
During the reporting period, the company’s comprehensive gross profit margin was 14.40%, 18.76%, 24.27% and 28.74% respectively. The main reasons for the increase year by year are as follows: (1) the price of polyester chips, the company’s main raw material, showed a downward trend during the reporting period, reducing the unit cost of the company’s products; (2) Most of the company’s products are priced by adding a certain value-added premium to the settlement price of raw materials, and the amount of value-added premium depends on the market supply and demand of the industry in which the product is located and the competitiveness of the product in the market. The company’s main products, polyester film for photovoltaic and polyester film for electrical insulation, have competitive advantages in the industry. Good market reputation has given the company’s products more added value premium. If the price of polyester chips in the future
