Stock Code: 000301 stock abbreviation: Jiangsu Eastern Shenghong Co.Ltd(000301) Announcement No.: 2022-011 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 renewable differentiated and functional polyester filament and supporting texturing project with an annual output of 250000 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 performance, reflect the sustainable development concept of “green, low carbon and recycling”, and further enhance the market competitiveness of polyester filament, Jiangsu Ruibang Technology Co., Ltd. (hereinafter referred to as “Ruibang technology”), a secondary wholly-owned subsidiary of the company, will invest in the construction of phase II renewable differentiated and functional polyester filament and supporting texturing project with an annual output of 250000 tons (hereinafter referred to as “the project”). The estimated total investment of the project is RMB 2.838 billion 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 renewable differentiated and functional polyester filament and supporting texturing project with an annual output of 250000 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 Jiangsu Ruibang Technology Co., Ltd. as the investor.
1. Ruibang technology was established on January 9, 2020, legal representative: Kong Wenlong, unified social credit Code: 91321323ma20t02h0u, registered capital: 110 million yuan, type: limited liability company (sole proprietorship of legal person invested or controlled by non natural person), domicile: East of provincial highway 343, economic development zone, Siyang County, Suqian City, south of Yiyang Avenue, Business scope: R & D, production and sales of recycled fiber. (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: Ruibang technology is a secondary wholly-owned subsidiary of the company.
3. Ruibang technology is not a dishonest person.
3、 Basic information of the investment project
1. Project Name: Jiangsu Ruibang Technology Co., Ltd. phase II annual output of 250000 tons of recycled differentiated and functional polyester filament project, and Jiangsu Ruibang Technology Co., Ltd. phase II annual output of 250000 tons of recycled differentiated and functional textured polyester filament project
2. Construction site: the project is located in the east of provincial highway 343 and the south of Yiyang Avenue, Siyang County Economic Development Zone, Suqian City, Jiangsu Province. The total newly added land area of the project is about 157.16 mu.
3. Construction content and scale: the second phase of the project is proposed to produce 250000 tons of recycled differentiated and functional polyester filament (polyester pre oriented yarn / full draft yarn POY / FDY) and 108 supporting texturing machines (POY is used as the precursor and processed into polyester low elastic yarn DTY). In the project, the first and second phase regeneration production lines and public equipment are newly built in the original phase I regeneration spinning workshop and comprehensive power station, mainly including comprehensive water supply station, ammunition adding workshop, three-dimensional warehouse, finished product warehouse and other buildings and relevant auxiliary supporting facilities.
4. Investment amount: the total investment of the project is 2.838 billion yuan, including 2.579 billion yuan of construction investment and 181 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, it is being submitted for approval in the early stage.
7. Other notes: this foreign investment does not involve entering new fields.
4、 Main contents of foreign investment contract
Ruibang technology will sign relevant engineering projects, equipment procurement and other contracts according to the approval and 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 raw material of the project is waste bottle chips, which achieves the green environmental protection of bottle chips, primary silk and then elastic silk, and the utilization of renewable resources for circular development, and realizes the circular economy model of industrial chain development.
2. Market prospect analysis of the project
In recent years, with the improvement of production level and equipment conditions, especially the market demand brought by the improvement of people’s living standards, the demand for differentiated functional fiber varieties in China and the international market has increased year by year. The product of the project belongs to recycled intelligent super simulation functional chemical fiber, which is mainly located in civil products such as clothing decoration. The product has good quality and reasonable price, which can meet the needs of various clothing decoration products market. The project product has 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, and embody the sustainable development concept of “green, low-carbon and recycling”. After the implementation of the project, it can enrich the company’s product varieties, improve the 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 3.983 billion yuan and the total annual profit is 670 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. Relying on the company’s deep experience in R & D, production and sales in the civil polyester filament market, Ruibang technology will establish brand awareness, strengthen brand advantages and firm market position. At the same time, Ruibang technology will continue to strengthen technology R & D, continuously improve product technical level, timely adapt to market demand and actively improve the anti risk ability of products.
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
