Stock abbreviation: Shanying International Holdings Co.Ltd(600567) Stock Code: Shanying International Holdings Co.Ltd(600567) Announcement No.: pro 2022032 bond abbreviation: Shanying convertible bond bond Code: 110047
Bond abbreviation: ying19 convertible bond Code: 110063
Shanying International Holdings Co.Ltd(600567)
Announcement on investment and construction of Suzhou paper project
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. Important content tips:
Investment project name: Anhui Zhongying pulp and Paper Co., Ltd. annual output of 700000 tons of hot grinding fiber and 1.8 million tons of packaging paper cogeneration project (hereinafter referred to as “Suzhou project”).
Investment amount: the total investment of Suzhou project is about RMB 11.4 billion, and the specific amount shall be subject to the actual investment amount.
Special risk tip: there are risks in the implementation of the project, such as construction, industrial policies and market. There is still some uncertainty whether the project can be successfully implemented and achieve the expected objectives. Please pay attention to investment risks.
1、 Overview of foreign investment
In order to further strengthen the regional competitive advantage, enhance the market share and implement the strategic goal of 10 million ton capacity layout, Shanying International Holdings Co.Ltd(600567) (hereinafter referred to as “the company”) plans to invest in the construction of paper project in Suzhou City, Anhui Province through its wholly-owned subsidiary Anhui Zhongying pulp and paper Co., Ltd. (hereinafter referred to as “Anhui Zhongying”). The phase I of Suzhou project plans to have a capacity of 700000 T / a hot grinding fiber and 1.8 million T / a packaging paper, And supporting the implementation of cogeneration.
On April 15, 2022, the 15th meeting of the 8th board of directors held by the company considered and approved the proposal on investing in the construction of Suzhou paper project, and agreed that the company would implement the project with its own funds and self raised funds. The investment of its own funds would be carried out by means of cash capital increase for Anhui Zhongying, a wholly-owned subsidiary of the project implementation main company, The chairman of the board of directors shall request the general meeting of shareholders to perform the relevant investment procedures within the scope of the company’s own capital increase. All independent directors of the company expressed their independent opinions on the proposal. According to the relevant provisions of the Listing Rules of Shanghai Stock Exchange and the articles of association, this investment needs to be submitted to the general meeting of shareholders for deliberation and approval.
This foreign investment does not involve related party transactions and does not constitute a major asset reorganization as stipulated in the administrative measures for major asset reorganization of listed companies.
2、 Basic information of project implementation subject
Company name: Anhui Zhongying pulp and Paper Co., Ltd
Company type: limited liability company (sole proprietorship of legal person invested or controlled by natural person)
Date of establishment: December 9, 2020
Registered capital: 500 million yuan
Legal representative: Chen Yinjing
Address: Suma Park, Suzhou City, Anhui Province (500m west of Suzhou East Expressway)
Business scope: production and sales of pulp, paper products, paperboard and cellulose fiber, sales of building materials, chemical raw materials and products (excluding hazardous chemicals) and plastic products, technology development, technology transfer, technical consultation, technical service and training in the field of pulping, import and export wholesale business of mechanical equipment, instruments and accessories, pulp, dissolved pulp, paper, paperboard and paper products, production and supply of electricity and heat, Recycling and processing of renewable resources (excluding productive waste metals and hazardous wastes), solid waste treatment (excluding hazardous waste treatment). (for projects subject to approval according to law, business activities can be carried out only after approval by relevant departments)
Shareholders and shareholding: the company holds 100% equity of Anhui Zhongying, which is a wholly-owned subsidiary of the company.
Main financial data: audited by ShineWing Certified Public Accountants (special general partnership), as of December 31, 2021, Anhui Zhongying had total assets of RMB 811615 million and net assets of RMB -878400; In 2021, the company realized an operating income of RMB 0 and a net profit of RMB -878400.
3、 Basic information of construction project
Project Name: heat and power cogeneration project with an annual output of 700000 tons of hot grinding fiber and 1.8 million tons of packaging paper
Project implementation subject: Anhui Zhongying
Project location: Suzhou Ma’anshan modern industrial park, Yongqiao District, Suzhou City, Anhui Province
Project construction content: three 100000 t / a straw hot grinding fiber production lines, one 400000 T / a wood chip hot grinding fiber production line and supporting resource recovery and waste heat utilization, two 400000 T / a corrugated paper production lines, one 500000 T / a corrugated paper production line, one 500000 T / a box board paper production line, supporting thermal power plant and solid waste
Doors and other auxiliary facilities. The first phase of the 900000 T / a packaging paper cogeneration project includes a 400000 T / a corrugated paper production line and a 500000 T / a corrugated paper production line, supporting thermal power plants (three boilers and two machines), comprehensive utilization of solid waste resources for power generation (one boiler and one machine), biomass power plants (two boilers and two machines), etc.
Project investment scale: the total investment of the project is 11445133000 yuan. In the first stage, the total investment of 900000 tons of packaging paper cogeneration project is 685441 million yuan (including foreign exchange of 90.39 million euros), including 623393 million yuan of construction investment, 214.08 million yuan of interest during construction and 406.4 million yuan of working capital.
Source of funds: self owned funds, self raised funds or funds from other legal sources.
Project construction period: the overall project construction period is 30 months, implemented in stages, and the construction period of the first stage is 24 months.
Market positioning and feasibility analysis: as an important part of the national economy, industrial papermaking and packaging products are widely used in industrial products, food and beverage, electronic appliances, e-commerce logistics and other fields. With the steady development of China’s economy and the continuous improvement of residents’ consumption level, the new demand for paper and paperboard brought by the “plastic restriction order” policy is expected to continue to rise in the demand for paper packaging materials in the Chinese market, driving the continuous expansion of the scale of China’s paper packaging industry. Suzhou project is a regional collaborative project of the company based on Anhui MAANSHAN papermaking base. The region has developed economy, dense population, active market and high customer concentration. It is China’s main manufacturing base and export base. The new papermaking project can make full use of the company’s existing technical reserves, R & D achievements, large-scale production organization capacity and existing market foundation, and continuously optimize the unit cost through the scale effect brought by the capacity advantage, so as to enhance the company’s industry competitiveness.
In 2021, the output of box board paper and corrugated paper in Anhui paper base was 1.77 million tons and 130000 tons respectively. Downstream customers generally purchased box board paper and corrugated paper in the ratio of 1:1 to meet the production demand. The corrugated paper capacity gap is large. The Suzhou project plans to have a corrugated paper capacity of 1.3 million tons / year, which increases the proportion of low gram weight and high-strength corrugated paper, further improves the company’s product structure and optimizes the product portfolio, So as to better meet the different needs of customers, enhance customer stickiness and improve customers’ comprehensive satisfaction.
Anhui Province is one of the major grain producing areas and wheat straw producing areas in China, with rich straw resources. The Suzhou project plans to produce 300000 tons of straw hot grinding fiber, promote the comprehensive utilization of straw resources, effectively absorb the local agricultural waste resources, and provide an effective solution to the shortage of fiber raw materials in China’s paper industry under the prohibition of the import of waste paper, which is in line with the guiding direction of improving the structure of fiber raw materials and increasing China’s effective supply in the opinions of China Paper Association on the development of paper industry in the 13th five year plan.
The company has hired a professional organization to prepare the feasibility study report. According to the calculation of the report, the annual average profit of the 900000 ton packaging paper cogeneration project is expected to be 613.85 million yuan in the production period, the total return on investment is 9.73%, the financial internal rate of return before income tax of the project is 12.81%, and the static investment payback period (including 2 years of construction period) is 8.18 years.
Approval procedures: the project has been filed or approved by relevant departments, and the EIA reply has been obtained.
4、 Impact of this investment project on the company
The company continued to focus on the development of its main business and orderly promoted the layout of regional capacity advantages. This investment is an expansion project planned by the company on the basis of the original Anhui paper base, which will bring a total of 1.8 million tons / year of new production capacity to the company, further consolidate and enhance the company’s market position in East China, strengthen the company’s core business, optimize the company’s product structure, improve the company’s profitability and core competitiveness, and meet the requirements of relevant national and local industrial policies, In line with the company’s strategic plan to build a 10 million ton capacity layout.
The implementation period of this investment is long and has no significant impact on the current operating performance of the company. After the project is put into operation, it will further improve the market share, have a positive impact on the development of the company and meet the interests of all shareholders. The company will arrange capital expenditure in an orderly manner, reasonably plan the project construction process, and promote the completion of the project on schedule and with high quality.
5、 Risk tips for this foreign investment
(I) construction risk
The investment and construction period is long and the investment amount is large, which has high requirements on the company’s ability of fund coordination, construction planning and construction management, and there are uncertainties in the construction progress and implementation process.
(II) industry policies and market risks
The papermaking and paper products industry of the company is greatly affected by macroeconomic fluctuations and industrial policies. After the project is completed and put into operation, it may face many uncertainties such as macroeconomic fluctuations outside China, industrial policies and market environment, and there is a risk of not meeting expectations.
The company is a leading enterprise of box board corrugated paper in China, with rich experience in project construction, production operation and equipment management. At the same time, it has national postdoctoral scientific research workstation, provincial enterprise technology center, recycled fiber papermaking engineering technology research center and other R & D platforms at all levels, with sufficient technical and talent reserves. The company’s Guangdong Shanying 1 million ton papermaking project is expected to be completed and put into operation in mid-2022. Zhejiang Shanying 770000 ton papermaking project and Jilin Shanying phase I 300000 ton corrugated paper and 100000 ton straw pulp project are expected to be completed and put into operation at the end of 2022 and 2023 respectively. The new capacity will quickly become a new profit growth point of the company and contribute to the steady growth of cash flow.
The company will make overall planning, reasonably arrange the construction progress, continuously improve the fund management level, strengthen the capital operation, and effectively ensure the smooth implementation of the project. Please pay attention to investment risks.
6、 Documents for future reference
1. Resolutions of the 15th meeting of the 8th board of directors of the company;
2. Independent opinions of independent directors on matters related to the 15th meeting of the eighth board of directors. It is hereby announced.
Shanying International Holdings Co.Ltd(600567) board of directors April 16, 2002
