Rongsheng Petrochemical To Build A Complete Industrial Chain And Establish PET Polyester Leading Position

Rongsheng Petrochemical issued a letter of intent to issue the prospectus in October 12th.

The company's main business is PTA and polyester polyester related products, the company has the advantages of industrial chain integration, scale advantages and geographical advantages, and promote the company to achieve the leading position of cost and customer base.

Insiders pointed out that after the investment in Rongsheng Petrochemical's listing fund was implemented, the company will develop environmentally friendly and healthy multi-functional Fiber Varieties on the basis of consolidating the advantages of polyester polyester variety integration.

At the same time, the company's industrial chain extends to the upstream PTA industry, thereby strengthening.

Broad prospects for products

Rongsheng Petrochemical is a large PTA and polyester filament production enterprise in China. Its main products include PTA, PET chips, polyester drafting yarn (FDY), polyester preoriented yarn (POY), polyester and elastic wire (DTY) three series.

The company's predecessor, Rongsheng textile, was founded in 1995. Its main business is manufacturing, processing chemical fibre cloth and polyester filament.

In 1997, Rongsheng textile imported advanced PET chip spinning polyester filament and projectile equipment from Japan. At the same time, it voluntarily gave up the weaving business and realized the pformation from the traditional textile industry to the upstream chemical fiber industry.

In 2002, the company's predecessor, Zhejiang Rongsheng Chemical Fiber Co., Ltd. completed its annual production of 200 thousand tons polyester and direct spinning filament yarn project, and marked the pformation of the main business structure of the company from PET sliced spun yarn to the production of polyester, melt direct spinning filament and projectile. By the end of 2004, the annual output of Rongxiang chemical fiber two sets of 200 thousand tons polyester and melt direct spinning polyester filament project was put into operation, at the same time, a large number of advanced equipment was introduced, and the technology level and production capacity were greatly improved.

In April 2009, the company's holding subsidiary was Yanda.

Market share stability

It is understood that China's polyester polyester industry is in the stage of adjustment and upgrading. On the one hand, the industry is fiercely competitive, and the dominant enterprises in the industry have been perfecting the industrial chain by investing in upstream industries to achieve economies of scale and reduce paction costs; backward production capacity of disadvantaged enterprises has gradually dropped out of the market, and the concentration of industries has gradually increased, and production resources are gradually concentrated to dominant enterprises.

On the other hand, fierce competition in the industry has prompted enterprises in the industry to intensify technological pformation, strive to develop new products, increase value-added products, and accelerate the upgrading of the industrial structure.

The company will make use of the existing technology, management and brand advantages to strengthen market development, and intend to complete the expansion of the industrial chain and value chain through the capital market, so as to stabilize and improve the market share of PTA and polyester filament products.

With the commissioning of PTA project of Rongsheng Petrochemical holding subsidiary company, the market share of PTA products will increase greatly and profitability will be greatly improved.

At the same time, the total sales volume of the polyester filament products basically remained stable, but the product structure had been greatly adjusted. With the gradual expansion of the company's bomb production capacity, the sales volume of DTY products with higher gross profit margins gradually increased, while the sales of POY products gradually decreased.

The company's current development focuses on the integration of upstream and downstream industry chains and product structure adjustment. During the reporting period, the market share of polyester filament products remained stable.

Rongsheng Petrochemical said that the fund will be used for the development and construction of two projects of PTA, environmental health and multifunctional fiber.

In terms of finance, after the fund is raised, the net assets and liquidity of the company will increase substantially, and the asset liability ratio and cash flow will be improved. It can further optimize the company's assets and liabilities structure, effectively improve the company's financial situation and enhance its ability to resist risks.

At the same time, after raising funds, the introduction of multiple investment entities, the company's ownership structure will also be further optimized.

Net assets and net assets per share will increase substantially.

With the gradual increase of investment projects and the gradual improvement of project profitability, the profitability of the company will continue to rise, thereby contributing to a steady increase in net assets yield.

Insiders pointed out that after the implementation of this project, the company will develop environmentally friendly, healthy and versatile Fiber Varieties on the basis of consolidating the advantages of polyester polyester variety integration.

At the same time, the company's industrial chain extends to the upstream PTA industry, thereby strengthening the overall competitiveness of the industry chain, and further expanding the leading edge of the company in the industry.