Securities code: 000703 securities abbreviation: Hengyi Petrochemical Co.Ltd(000703) Announcement No.: 2022-016 Hengyi Petrochemical Co.Ltd(000703)
About the investment of the subsidiary in the construction of an annual output of 1.2 million tons of caprolactam polyamide integration
Announcement of and supporting projects
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.
Special tips:
1. The construction investment of the project does not constitute related party transactions.
2. The construction investment of this project does not constitute a major asset reorganization as stipulated in the administrative measures for major asset reorganization of listed companies.
3. The construction investment of the project has been deliberated and approved at the 16th meeting of the 11th board of directors and needs to be submitted to the general meeting of shareholders of the company for deliberation.
1、 Overview of investment projects
According to the planning guidance of the company’s strategic development, in order to further increase the company’s influence in the field of caprolactam (CPL) and polyamide (PA6) and promote the high-quality development of manufacturing industry, The company’s subsidiary Guangxi Hengyi new materials Co., Ltd. (hereinafter referred to as “Guangxi Hengyi new materials”) plans to invest in the construction of “industrial integration and supporting engineering project of caprolactam polyamide with an annual output of 1.2 million tons”. The total investment of the project is expected to be 19.723 billion yuan, which will be implemented in two phases. The project funds come from the company’s own funds, bank loans or other financing methods. According to the high standard requirements of “industry 4.0 system”, the project will build a large-scale automatic and intelligent petrochemical and chemical fiber industrial park, and plan to build a set of modern caprolactam polyamide integrated device with an annual output of 1.2 million tons. After the project is put into operation, it can effectively extend the downstream industrial chain of aromatics, enhance the competitive strength of enterprises and improve the overall profitability of listed companies.
The company held the 16th meeting of the 11th board of directors on January 21, 2022, and considered and adopted the announcement proposal on the investment and construction of 1.2 million tons of caprolactam polyamide integration and supporting projects by subsidiaries with 9 votes in favor, 0 against and 0 abstention.
According to the Listing Rules of Shenzhen Stock Exchange, the articles of association and other relevant provisions, the investment and construction project must be submitted to the general meeting of shareholders for deliberation and approval.
This foreign investment does not constitute a connected transaction, nor does it constitute a major asset reorganization stipulated in the administrative measures for major asset reorganization of listed companies.
2、 Project implementation subject
The project is implemented by Guangxi Hengyi new materials Co., Ltd. as the main investor. The basic information is as follows:
1. Date of establishment: July 16, 2019
2. Unified social credit Code: 91450700ma5nxy1h52
3. Registered capital: 500 million yuan
4. Address: 4th floor, China Merchants Building, No. 8, Haijing 2nd Street, Qinzhou Port Economic and Technological Development Zone, Qinzhou City
5. Nature of enterprise: limited liability company (sole proprietorship of legal person invested or controlled by non natural person)
6. Legal representative: Shen Fei
7. Main business: artificial fiber (cellulose fiber) manufacturing; Production and sales of chemical products (excluding hazardous chemicals); Sales of instruments and meters, mechanical equipment and import and export of Technology (except those prohibited or restricted by the state). 8. Major shareholder: Zhejiang Hengyi Petrochemical Co.Ltd(000703) Co., Ltd. holds 100% of the shares.
9. Upon inquiry, Guangxi Hengyi new material is neither the subject of breach of faith nor the person to be executed
3、 Basic information of the investment project
1. Project Name: 1.2 million tons / year caprolactam polyamide industrial integration and supporting project of Guangxi Hengyi new materials Co., Ltd
2. Project construction location: in Qinzhou Port Petrochemical Park, south of Gangwan street, east of Nangang Avenue and west of Linhai Avenue
3. Project construction content: the project is implemented in two phases, with an annual output of 600000 tons of polyamide. The construction land for phase I is 1717 mu, and the construction land for phase II is 802 mu. Phase I construction includes production units such as 2 * 300000 t / a cyclohexanone, 2 * 400000 T / a hydrogen peroxide, 200000 t / a synthetic ammonia, 100000 standard m3 / h hydrogen production, 2 * 300000 t / a caprolactam and 600000 T / a polyamide polymerization, as well as supporting intelligent warehouse, public works, heating facilities and service projects; On the basis of phase I, phase II will build production units such as 2 * 300000 t / a cyclohexanone, 400000 T / a hydrogen peroxide, 2 * 300000 t / a caprolactam and 600000 T / a polyamide polymerization, as well as supporting intelligent warehouse, utilities and heating facilities.
4. Product scheme:
Unit: 10000 tons
Serial number product / by-product name design capability
600000 T / a 1.2 million T / A
1 nylon 6 slice (semi extinction) 20 40
2 nylon 6 slice (full extinction) 13.3 27
3 nylon 6 chips (engineering plastics) 13.3 27
4 nylon 6 chips (film grade, conventional spinning) 6.7 13
5 nylon 6 chip (large optical spinning grade) 6.7 13
4. Project investment: the estimated total investment of the project is 19.723 billion yuan
5. Benefits of the project: after preliminary calculation, the average annual operating income is about 15945.79 million yuan.
4、 Purpose of project implementation and impact on the company
1. The construction of the project is in line with the company’s strategic thinking of adhering to the development of main business and consolidating and improving the core competitiveness of main business. Therefore, it will increase the interests of the company’s shareholders and meet the requirements of maximizing the interests of the company.
2. According to the high standard requirements of “industry 4.0 system”, the project plans to build a large-scale automatic and intelligent petrochemical and chemical fiber industrial park, and plans to build a modern device integrating caprolactam and polyamide with an annual output of 1.2 million tons, so as to enhance the competitive strength of the enterprise. The caprolactam gas phase rearrangement process adopted in the project is an environment-friendly new process without by-product ammonium sulfate. Its atomic economy has reached 100%, and has been listed in the list of petrochemical green processes (2020 Edition) by the national development and Reform Commission.
3. The project funds come from the company’s own funds, bank loans or other financing methods. The sources of funds are rich and will not have a significant impact on the company’s financial situation.
4. The implementation of the project is conducive to optimizing the product structure of the enterprise, innovating the production and operation mode of the enterprise, stabilizing the leading position of the industry, improving the market share, optimizing the industrial chain structure, enhancing the core competitiveness of the enterprise, improving the profitability of the company and realizing rapid and healthy development.
5、 Decision making procedure and subsequent main matters
In view of the large amount of investment involved in the project, the company has communicated with the members of the board of directors on the project in the early stage. After the proposal is approved by the shareholders’ meeting of the company, the company will pay close attention to various design and construction preparations of the project and start construction as soon as possible. 6、 Risk tips
After the project is completed, it will face market risks such as changes in market demand and product price fluctuations. At the same time, there may also be risks of uncertain impact of future market changes on the realization of economic benefits. In order to cope with market risks, Guangxi Hengyi new materials has actively made scientific planning, steady construction and high-quality operation, and continuously improved the competitiveness and market share of products. The company cooperates internally, strives for excellence, constantly improves the product grade, timely adapts to the market demand, and actively improves the anti risk ability of products.
The company will timely perform its continuous information disclosure obligations on the progress of the project in accordance with relevant laws, regulations, normative documents and the articles of association. Please pay attention to the investment risk.
7、 Independent opinions of independent directors
The independent directors of the company expressed independent opinions on the investment of the project and believed that the project is conducive to the integrated strategic development of the company, the national industrial development orientation and the promotion of high-quality development; Enhance product competitiveness, enhance the company’s overall profitability and increase the interests of the company’s shareholders, which is in line with the needs of maximizing the interests of the company and shareholders. The voting procedures of the board of directors for this project investment comply with the relevant provisions of China Securities Regulatory Commission, Shenzhen Stock Exchange and the articles of association.
8、 Documents for future reference
1. Resolutions of the 16th meeting of the 11th board of directors of the company;
2. Independent opinions of independent directors on matters related to the 16th meeting of the 11th board of directors;
3. Feasibility study report
It is hereby announced.
Hengyi Petrochemical Co.Ltd(000703) board of directors January 21, 2002
