Securities code: 002593 securities abbreviation: Xiamen Sunrise Wheel Group Co.Ltd(002593) Announcement No.: 2022-012 Xiamen Sunrise Wheel Group Co.Ltd(002593)
Announcement on the holding subsidiary's proposed investment in the new heavy steel structure production project
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
Based on the strategic development needs of the company to strengthen and expand its main business, Xiamen Sunrise Wheel Group Co.Ltd(002593) (hereinafter referred to as "the company") plans to invest in the production project of heavy steel structure with an annual output of 100000 tons in Shunqing District, Nanchong City, Sichuan Province (hereinafter referred to as "the project") by Xiamen xinchangcheng Steel Structure Engineering Co., Ltd. (hereinafter referred to as "the company"). The total investment of the project is estimated to be 500 million yuan, which is promoted by means of overall planning and phased implementation. The source of funds of the project is the company's own funds, bank loans or other financing methods. After the project is put into operation, it will further optimize the company's steel structure product structure, improve the market share of the company's main business of steel structure, and improve the overall profitability of listed companies.
The project has been deliberated and adopted at the 24th Meeting of the Fourth Board of directors on January 26, 2022. According to the company law, the Listing Rules of Shenzhen Stock Exchange, the articles of association and other relevant provisions, this matter needs to be submitted to the first extraordinary general meeting of shareholders of the company in 2022 for deliberation.
This investment does not constitute a connected transaction, nor does it constitute a major asset reorganization as stipulated in the administrative measures for major asset reorganization of listed companies.
2、 Basic information of the project
1. Project Name: heavy steel structure production project with an annual output of 100000 tons
2. Project implementation subject: Xiamen xinchangcheng Steel Structure Engineering Co., Ltd. plans to be implemented in a new wholly-owned subsidiary in Shunqing District, Nanchong City.
3. Project location: Shunqing District, Nanchong City, Sichuan Province
4. Project land: about 350 mu (estimated) of industrial land, subject to the actual amount of land transferred by the government at the place of project implementation.
5. Project construction content: the construction is mainly used to produce heavy steel structure products such as high-end industrial plants, bridge steel structures, large venues and petrochemical equipment steel structures. It is expected that the annual output of 100000 tons of steel structures can be achieved after the project is completed.
6. Project investment amount and capital source: the investment amount is estimated to be no more than 500 million yuan, and the capital sources are self owned funds, bank loans or other financing methods.
7. Project construction period: the project construction period is 3 years (excluding project application).
3、 Necessity and feasibility of this investment and its impact on Listed Companies
With the deepening of the national "steel structure prefabricated building" policy, the steel structure prefabricated building industry has entered a period of rapid development with the support of the national industrial policy and the help of the favorable market environment. The holding subsidiary xinchangcheng has complete steel structure engineering qualification and system certification in steel structure business, covering the scope of steel structure and related housing construction. The company's steel structure business focuses on the regional market. Relying on the layout of three production bases in Xiamen, Hua'an and Nanchong, the company focuses on the steel structure business in the subdivided fields of petrochemical equipment steel structure, municipal bridge and rail transit, large-scale high-end industrial plant and high-rise steel structure building. After more than 20 years of development, The company has established the brand influence of "xinchangcheng" and "NCC" in the field of steel structure. At present, the company's steel structure production capacity has nearly reached full capacity. This investment is of great strategic significance for the company to expand and strengthen the main business of steel structure. After the project is put into operation, it can further optimize the company's steel structure product structure, expand the market share of the company's steel structure segments, and improve the overall profitability of Listed Companies in the future.
The project is still in the preparatory stage. Although the company has reached a preliminary cooperation intention with the Shunqing district government of Nanchong City, the project implementation still needs to set up subsidiaries, sign formal investment agreements, land bidding, auction and listing and other approval matters. It is expected that it will not have a significant impact on the profitability of this year, but it is of positive significance to the long-term development of the company. Based on the consideration of prudence, the project will be carried out in the way of overall planning and phased implementation. The company will flexibly adjust the investment progress in combination with the company's capital situation, market demand and other factors.
4、 Risk tips
1. Although the investment company has reached a preliminary cooperation intention with Shunqing district government of Nanchong City, it has not signed a formal investment agreement, so there is some uncertainty.
2. The capital source of the project is self raised by the company. Due to the large amount of investment, the cash flow of the company may be reduced in the future. At the same time, the changes of capital raising, credit policies and financing channels in the process of investment and construction may make the company bear certain financial risks.
3. This investment is based on the company's strategic development needs and the judgment of market prospects. However, there are certain uncertainties in the development trend of the industry, the changes of market conditions and the business expansion ability of the management team, which will have an uncertain impact on the realization of future business benefits.
4. The project construction involves land use, project approval, environmental protection, planning, construction and other approval matters, which also need to be approved by relevant competent departments, so there is a certain approval risk.
5. The output value and other terms of this Agreement do not represent the company's prediction of future performance, nor do they constitute a performance commitment to investors.
The company will pay close attention to the progress of the project and perform the obligation of information disclosure in strict accordance with the requirements of relevant laws and regulations. Please pay attention to the investment risks.
5、 Deliberations
The independent directors of the company believe that the company's investment in the construction of heavy steel structure production project is conducive to promoting the company to expand and strengthen the main business of steel structure and expand the market share of the company's steel structure segments. Considering that the company's existing steel structure production capacity is nearly full, the new production capacity that can be added by this investment is necessary for the development of the company. The company has focused on the main business of steel structure for more than 20 years, with rich experience in steel structure project construction and stable customers. The new project is in line with the development trend of the national steel structure fabricated construction industry. The project adopts the cautious measures of overall planning and phased implementation, which is feasible.
The investment proposal was reviewed and approved at the 24th Meeting of the 4th board of directors and the 24th Meeting of the 4th board of supervisors of the company, and it was agreed to submit the proposal to the first extraordinary general meeting of shareholders of the company in 2022 for deliberation.
Considering the needs of the subsequent development of the project, the general meeting of shareholders is requested to authorize the chairman to deal with the subsequent matters of the investment, including but not limited to: (1) negotiate and sign the project investment agreement with Shunqing district government according to the project content; (2) Handle the industrial and commercial registration of the newly established company and the land bidding, auction and listing of the project; (3) Other work related to the project.
6、 Documents for future reference
1. Resolution of the 24th Meeting of the 4th board of directors of the company
2. Resolution of the 24th Meeting of the 4th board of supervisors of the company
Xiamen Sunrise Wheel Group Co.Ltd(002593)
Board of directors
January 27, 2022
