Zhejiang Taitan Co.Ltd(003036)
Zhejiang Taitan Co.,Ltd.
(No. 99 Titan Avenue, Qixing street, Xinchang County, Zhejiang Province)
Feasibility analysis report on the use of funds raised by public issuance of convertible corporate bonds
January 2002
The total amount of funds raised from the public offering of convertible corporate bonds is no more than RMB 295.5 million (including this amount). The raised funds are planned to be fully invested in the following projects after deducting relevant issuance expenses:
Unit: 10000 yuan
No. project name total investment amount amount of raised funds to be used
1. Construction project of intelligent textile machinery equipment manufacturing base 39810.00 16000.00
2 construction project of Hangzhou R & D center 6105.00 5550.00
3. Supplementary working capital 8000.00 8000.00
Total 53915.00 29550.00
After the issuance is reviewed and approved by the board of directors, if the company invests in the above projects with its own funds before the raised funds are in place, the raised funds will be replaced after they are in place.
If the net amount of funds actually raised in this offering is less than the required amount of funds raised, the board of directors of the company will arrange the specific use of the raised funds according to the importance and urgency of the purpose of the raised funds, and the insufficient part shall be solved by the company with its own funds or through other financing methods. On the premise of not changing the investment project of the raised funds, the board of directors of the company may appropriately adjust the investment sequence and amount of the raised funds of the above projects according to the actual needs of the project. 2、 Background and purpose of the project invested by the raised funds
(I) structural adjustment of textile machinery products
In recent years, China’s textile machinery product structure has been continuously adjusted. Automatic and intelligent textile machinery equipment to improve yarn quality and save labor has become the first choice for new projects of Chinese textile enterprises. With the continuous improvement of China’s labor cost, the advantage of China’s labor cost is gradually weakened, and the operating pressure forces enterprises to eliminate backward production capacity. It is a general trend to introduce automatic and intelligent textile machinery and equipment. The automation of textile machinery can not only improve the production efficiency of textile enterprises and increase their profit space, but also improve the level of information and integrated application, so as to achieve the purpose of “reducing staff, increasing efficiency, improving quality and ensuring safety”. The textile machinery industry will continue to move forward on the high-end and intelligent development route of high reliability, high technology and high added value. Under the above industry background, the company can better adapt to the industry trend of automation and intelligence by implementing the construction project of intelligent textile machinery equipment manufacturing base and the construction of Hangzhou R & D center.
(II) the state vigorously promotes the development of intelligent manufacturing
In recent years, the continuous development of artificial intelligence, Internet of things and other technologies has promoted the transformation of traditional equipment manufacturing industry to intelligent manufacturing. Its interactive integration with textile equipment manufacturing has also led to new changes in the industry. The intelligent attribute of textile equipment based on artificial intelligence, Internet of things, big data and cloud computing is becoming increasingly prominent. In April 2021, the Ministry of industry and information technology and relevant departments drafted the “14th five year plan” for intelligent manufacturing development (Draft for comments), solicited opinions from the public, and put forward the development path and goal of Intelligent Manufacturing: by 2025, manufacturing enterprises above Designated Size will basically popularize digitization, and key enterprises in key industries will initially realize intelligent transformation. By 2035, manufacturing enterprises above Designated Size will fully popularize digitization, and backbone enterprises will basically realize intelligent transformation. Therefore, the company plans to further adapt to the development direction of intelligent manufacturing through this fund-raising investment project.
(III) it is conducive to optimizing the capital structure of the company and reducing the financing cost
At present, the company’s liabilities are mainly current liabilities, which is difficult to support the company’s long-term capital expenditure plan. After the issuance, it can increase the proportion of long-term liabilities in the company’s liabilities, further optimize the company’s capital structure, improve the company’s indirect financing ability, reduce the company’s financial risk, enhance the company’s comprehensive competitiveness, sustainable profitability and anti risk ability, and lay a solid foundation for the company’s long-term sustainable development. After the issuance, the proportion of the company’s non current liabilities in the total liabilities will be increased, the company’s capital structure will be further optimized, and the financial risk will be further reduced.
3、 Basic information of the project invested by the raised funds
(I) construction project of intelligent textile machinery equipment manufacturing base
1. Basic information of the project
The project is an intelligent textile machinery equipment manufacturing base project with a construction period of 24 months. The total investment of the project is 398.1 million yuan. It is planned to use the public issuance of convertible corporate bonds to raise 160 million yuan. 2. Necessity of project construction
(1) Adapt to the development trend of the industry, optimize the product structure and enhance the core competitiveness
In recent years, under the background of rising costs, improving the digital and intelligent technology level of textile equipment has become an important means for the textile industry to improve productivity and product quality stability. Developed economies such as Germany, Japan and Italy are traditional manufacturing powers in the global textile machinery industry. They have most of the core technologies of the industry, lead the world in technology, quality and brand, and occupy the main share of the medium and high-end market of global textile machinery and equipment. By implementing the intelligent spinning machine equipment manufacturing base project, the company produces K-90 full-automatic rotor spinning machine, c-50 tray automatic winder, tt-868 special high-speed rapier loom and intelligent control system, which can make the company’s product quality and technical performance reach or close to the international advanced level, further optimize the company’s product structure and enhance its core competitiveness.
(2) Seize market opportunities and realize rapid development
With the support of national policies, the industrial structure of the textile industry has been continuously optimized and the technical level has been continuously enhanced. China’s textile industry is changing from traditional production factors and investment drive to innovation drive, and from traditional labor-intensive industry to science and technology industry. Under this industry background, the company keeps up with the pace of the times, seizes market opportunities and realizes rapid development through the implementation of the project.
3. Feasibility of project construction
(1) The project is a policy encouraged industry and has policy feasibility
The project complies with the provisions of “development and manufacturing of intelligent, high-efficiency and low-energy textile machinery, key special basic parts, measuring and testing instruments and test equipment” in paragraph 9 of Article 20 “textile” of the encouraged category, and is a national encouraged industry; Meet the requirements of promoting independent investment in textile industry in the plan for the adjustment and revitalization of equipment manufacturing industry; It meets the requirements of “promoting high-end manufacturing capacity” in the outline of scientific and technological progress in the 14th five year plan of textile industry.
The implementation of the project will help to apply China’s advanced production technology, improve the independent production capacity and automation, digitization and intelligence level of China’s high-end light textile machinery and equipment, strengthen the competitive advantage of Zhejiang’s equipment manufacturing industry, accelerate the transformation and upgrading of the province’s textile industry, optimize the enterprise product structure and improve production capacity, and save cost and energy, So as to enhance the comprehensive competitiveness of the textile industry.
(2) Rich production experience and strict quality control provide guarantee for project construction
Since its establishment, the company has always firmly grasped the development trend of the industry, focused on the cutting-edge technology of textile machinery manufacturing, and carried out R & D and innovation of new products and processes. After years of operation and development, in terms of production and manufacturing, the company has systematically mastered a number of production processes and technologies, which can provide strong soft power support and experience reference for intelligent textile machinery manufacturing. In terms of quality control, the company has established a strict quality management system according to the requirements of iso9001:2015 quality management system standard, and prepared the quality manual and the compilation of quality management system procedure documents as the standard and action guide of the company’s quality control work. Adhere to strict internal control, and continuously improve the quality management level in combination with external mechanisms such as management review, so as to ensure the normal and effective operation of the quality system.
(3) The stable customer base provides good support for the project construction
After years of operation and development, the company has accumulated a large number of customer resources in the industry. At the same time, the company always pays close attention to the development trend of the industry, carries out automatic, digital and intelligent design, development and production manufacturing based on the needs of downstream customers, and continuously develops the market and obtains new customers on the basis of maintaining existing customers with the advantages of strong design and development strength, stable and good product quality and sound after-sales service, Provide sufficient customer protection for the company to expand production capacity. The customer resources accumulated by the company after years of development are conducive to the company’s continuous acquisition of new businesses of existing customers and the development of new customer related businesses. Provide stable product demand for the implementation of the project and ensure the sales realization of new capacity.
4. Project approval
The filing and environmental impact assessment procedures of the project have been completed, and the filing (code assignment) information form of enterprise investment projects in Zhejiang Province (No. 2019-330624-35-03-021862-000) and the approval document of xhgby [2019] No. 34 have been obtained.
5. Benefit analysis of the project
After the project is completed, the average annual operating income is 604 million yuan, the average annual after tax profit is 57.4055 million yuan, and the investment payback period (after tax) is 5.85 years. The main economic indicators are as follows:
No. item amount (10000 yuan) remarks
1. The average annual operating income (10000 yuan) is 60400.00, reaching the average of production period
2. The average annual after tax profit (10000 yuan) is 5740.55, reaching the average of production period
3. Investment payback period (after tax, year) 5.85 excluding construction period
4. Internal rate of return (before tax,%) 15.66%-
(II) Hangzhou R & D center construction project
1. Basic information of the project
The project is a construction project of Hangzhou R & D center, with a construction period of 24 months and a total investment of 61.05 million yuan. It is planned to use the public issuance of convertible corporate bonds to raise 55.5 million yuan.
2. Necessity of project construction
(1) It is the need of intelligent and green transformation and improvement of enterprise products
With the wide adoption of numerical control technology, the textile machinery industry has put its development goal on the intellectualization of products and equipment manufacturing. Intellectualization will significantly improve production efficiency, simplify production process, reduce labor cost, and improve product quality and stability. In addition, the state strongly advocates an environment-friendly production mode and encourages enterprises to pay attention to and develop green manufacturing technology with little impact on the environment and high resource utilization. Therefore, the application of new manufacturing and assembly technologies, new processes and lightweight new materials will become the focus of R & D in the textile machinery industry in the future. Whether it is intelligent transformation and upgrading or green technology development, it is inseparable from scientific and technological research and development. The establishment of the R & D center will further enhance the company’s innovation ability and provide a strong guarantee for the intelligent and green development of enterprises.
(2) It is the need to enhance the independent innovation ability of enterprises and enhance their comprehensive competitiveness
After years of technological innovation and accumulation, the company has more than 150 patents with independent intellectual property rights, and has mastered many key technologies such as “loom transmission mechanism”, “AC servo motor control circuit of electronic planetary edging device”, “high torque weft seeking device”, “loom variable speed weaving technology” and “groove barrel manufacturing technology”. The technical advantages of independent innovation are obvious, The performance indicators of the main equipment of the product have also reached the international advanced level of similar equipment, but the innovation ability in the development of original technology and leading technology and equipment needs to be improved. The establishment of the R & D center will further enhance the company’s R & D strength, promote product innovation and technological innovation, improve the enterprise’s comprehensive competitiveness, and occupy more market share.
(3) It is the need to introduce excellent talents, expand the R & D team and improve the R & D strength of enterprises
Technology R & D and innovation capability is the source of the company’s sustainable development, and high-quality R & D team is the basic support of technology R & D and innovation. The project chooses to set up a R & D center in Hangzhou, the provincial capital. First, create more superior R & D conditions and means to facilitate the in-depth development of technology R & D and stimulate the innovation enthusiasm of scientific and technological personnel; Second, make use of the location advantages of the provincial capital city to attract outstanding talents, expand the R & D team, increase the talent reserve, maintain the leading edge of technology and realize the sustainable development of the company; Third, through the establishment of R & D center, the company’s brand is launched, the company’s popularity is improved, and the company’s business is promoted to grow continuously.
3. Feasibility of project construction
(1) The project construction complies with industrial policies, special planning and industry guidance
The project complies with the provisions of “development and manufacturing of intelligent, high-efficiency and low-energy textile machinery, key special basic parts, measuring and testing instruments and test equipment” in paragraph 9 of Article 20 “textile” of the encouraged category, and is a national encouraged industry; Comply with the task requirements of “taking the transformation of innovation achievements as the guide and implementing the Innovation Ecosystem Optimization Project” in the 14th five year plan for scientific and technological innovation of Shaoxing City; It meets the requirements of “focusing on the development of textile green production equipment, textile intelligent processing equipment and high-tech textile production and application equipment” in the guiding opinions on the development of textile machinery industry in the 14th five year plan.
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