Stock Code: 000301 stock abbreviation: Jiangsu Eastern Shenghong Co.Ltd(000301) Announcement No.: 2022-010 bond Code: 127030 bond abbreviation: Shenghong convertible bond
Bond Code: 114578 bond abbreviation: 19 Shenghong G1
Jiangsu Eastern Shenghong Co.Ltd(000301)
Announcement on the subsidiary’s investment in the construction of phase II super simulated functional fiber project with an annual output of 500000 tons
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 foreign investment
1. Basic information of foreign investment
Jiangsu Eastern Shenghong Co.Ltd(000301) (hereinafter referred to as “the company”) in order to meet the growing objective demand of the market for various differentiated and functional polyester fibers with excellent properties and further enhance the market competitiveness of polyester filaments, Guowang high tech fiber (Suqian) Co., Ltd. (hereinafter referred to as “Guowang Suqian”), a secondary wholly-owned subsidiary of the company, will invest in the construction of phase II super simulated functional fiber project with an annual output of 500000 tons (hereinafter referred to as “the project”). The total investment of the project is expected to be 3.612 billion yuan and the construction period is 2 years.
2. On January 12, 2022, the company held the 42nd meeting of the 8th board of directors by means of communication voting, deliberated and unanimously adopted the proposal on the investment and construction of phase II super simulated functional fiber project with an annual output of 500000 tons by subsidiaries.
3. According to the Listing Rules of Shenzhen Stock Exchange, the articles of association and other relevant provisions, this foreign investment does not need to be submitted to the general meeting of shareholders for deliberation.
4. This transaction does not constitute a connected transaction.
5. This transaction does not constitute a major asset restructuring stipulated in the administrative measures for major asset restructuring of listed companies, and does not need to be approved by relevant departments.
2、 Introduction to foreign investors
The project is implemented by Guowang high tech fiber (Suqian) Co., Ltd. as the investor.
1. Basic information
Guowang Suqian was founded on November 15, 2019, legal representative: Kong Wenlong, unified social credit Code: 91321323ma20ea2749, registered capital: 1250 million yuan only, type: limited liability company (sole proprietorship of legal person invested or controlled by non natural person), domicile: East of provincial road 343, economic development zone, Siyang County, Suqian City, south of Yiyang Avenue, Business scope: R & D, production and sales of differentiated chemical fibers. (for projects subject to approval according to law, business activities can be carried out only with the approval of relevant departments) licensed projects: import and export of goods; Technology import and export; Import and export agency (for projects subject to approval according to law, business activities can be carried out only after approval by relevant departments, and the specific business projects shall be subject to the approval results) general projects: thermal power production and supply (except for projects subject to approval according to law, business activities shall be carried out independently according to law with business license)
Major shareholder: Shenghong new material (Suqian) Co., Ltd., a wholly-owned subsidiary of the company, holds 100% of its equity. 2. Relationship with listed companies: Guowang Suqian is a secondary wholly-owned subsidiary of the company.
3. Guowang Suqian is not a dishonest person to be executed.
3、 Basic information of the investment project
1. Project Name: phase II super simulated functional fiber project with an annual output of 500000 tons of Guowang high tech fiber (Suqian) Co., Ltd.
2. Construction site: East of provincial highway 343 and south of Yiyang Avenue, Siyang County Economic Development Zone, Suqian City, Jiangsu Province. The project covers an area of about 418.1 mu.
3. Construction content and scale: the project plans to build a phase II super simulated functional fiber project with an annual output of 500000 tons to produce polyester filament POY (pre oriented yarn) and FDY (fully drawn yarn). The production plants and supporting projects under construction include: polyester unit cp3cp4, spinning unit 2, PTA warehouse 2, finished product warehouse 3, three-dimensional warehouse 1, three-dimensional warehouse 2, etc.
4. Investment amount: the total investment of the project is 3.612 billion yuan, including 3.415 billion yuan of construction investment and 74 million yuan of initial working capital.
5. Source of funds: self owned funds and bank loans.
6. Project progress: the construction period of the project is expected to be 2 years. At present, the preliminary approval has been completed.
7. Other notes: this foreign investment does not involve entering new fields.
4、 Main contents of foreign investment contract
Guowang Suqian will sign relevant engineering projects, equipment procurement and other contracts according to the construction progress of the project.
5、 Purpose of foreign investment, existing risks and impact on the company
1. Feasibility analysis of the project
The construction of the project accelerates the pace of transforming traditional industries with high-tech equipment, meets the requirements of relevant national industrial policies and energy conservation, environmental protection, safety and health, and has good economic and social benefits. The project plans to introduce international advanced technology and equipment, and adopt mature and advanced energy-saving technology and equipment, which meets the industrial and local requirements for energy conservation and emission reduction.
The 16 million ton refining and chemical integration project of Shenghong refining and chemical ( Jiangsu Lianyungang Port Co.Ltd(601008) ) Co., Ltd. constructed by the project and the company’s secondary subsidiary is a key supporting project of the upstream and downstream industrial chain, which can not only ensure the short-distance supply of raw materials and meet the demand of surrounding functional fibers, but also reduce the operation cost of the textile industry, and further enhance the competitiveness and comprehensive benefits of the enterprise.
2. Market prospect analysis of the project
With the increasing improvement of consumers’ living standards, people are not satisfied with the basic functions of garment fabrics, and put forward higher requirements in appearance, feel, comfort, functionality and so on. The project is mainly aimed at civil products such as clothing decoration. Relying on the strong technical R & D capacity of the company, the project produces super simulated differentiated and functional chemical fibers such as flame retardant polyester fiber, radiation proof and far-infrared polyester filament, cationic fiber and special-shaped fiber, so as to realize the transformation of products from conventional varieties to high-performance and high-tech varieties. The super simulated functional fiber developed by the project can not only achieve the characteristics of natural fiber in terms of appearance health and comfort, but also achieve functionality, safety and environmental protection. The project products have broad market prospects.
3. Investment purpose and impact on the company
The products of the project are mainly targeted at civil products such as clothing decoration, which can meet the growing objective demand of the market for various differentiated and functional polyester fibers with excellent performance. The implementation of this project can improve the production capacity of the company’s polyester filament, enrich the product varieties of polyester filament, improve the super simulation functionality and differentiation rate of products, enhance the added value of products, further enhance the market competitiveness of the company’s polyester filament, enhance the core competitiveness of the enterprise under the background of fierce industry competition, and realize the sustainable development of the enterprise.
It is estimated that the annual sales revenue of the project is 3.365 billion yuan and the total annual profit is 796 million yuan. After the project is completed, it will have a positive effect on the company’s business performance.
4. Existing risks and Countermeasures
The project is mainly faced with market risks such as changes in market demand and product price fluctuations. Guowang Suqian will rely on the company’s deep R & D, production and sales experience and inside information in the civil polyester filament market, establish brand awareness, strengthen brand advantages, strengthen market position, continue to strengthen technical R & D, continuously improve product technical level, timely adapt to market demand and actively improve product risk resistance.
6、 Documents for future reference
1. Resolutions of the 42nd session of the 8th board of directors of the company.
It is hereby announced.
Jiangsu Eastern Shenghong Co.Ltd(000301) board of directors
January 13, 2022
