Joint Venture Shares To Be Invested In 600 Million Xinjiang Weaving

　　 Xinjiang cotton Advantage, let all Chinese textile enterprises all take heart. Joint venture shares (002394) today announced that in order to make full use of the advantages of cotton resources in Akesu, Xinjiang, a wholly owned subsidiary, Haian Lian FA Cotton Textile Co., Ltd. signed the cooperation agreement of Haian Lian FA cotton spinning Co., Ltd. in Akesu city for investment in cotton spinning projects in November 24th with the Akesu Municipal People's Government of Xinjiang. According to the framework agreement, the joint venture cotton spinning intends to invest 200 thousand yuan in cotton spinning project in Xinjiang Akesu City Textile Industrial Park, with a total investment of 600 million yuan.

Cotton is the blood of textile enterprises. Cotton prices have hit record highs this year. Cotton price The increase was over 100%, and cotton futures in October reached a maximum of 28 thousand yuan per ton. Xinjiang's cotton shares and new shares have soared, and chemical fiber stocks have been linked up. This is a bitter textile business. With the state bidding for the national cotton reserves, the continued high cotton prices have dropped sharply. Cotton share prices also fell sharply. Textile enterprises have been slow.

Jiangsu Lian FA shares were listed on the small and medium sized boards in April this year. The issue price was 45 yuan, which closed at 49.42 yuan yesterday. The company has an integrated industrial chain from spinning, weaving to shirt production. The joint venture said that the investment is to make full use of the scale advantages of Xinjiang's cotton resources, speed up the extension of the cotton textile industry chain, give full play to the advantages of our brand, technology and management, and more than 80% of the products produced by the investment projects are necessary for supporting the company's production, so as to achieve the win-win goal of cooperation. This investment is implemented step by step. The first phase is 50 thousand spindles, the two period is 50 thousand spindles, and the three phase is 100 thousand ingots. The plan is to complete all the projects in 5 years. The planned land for the project is 350 mu. The people's Government of Akesu city of Xinjiang promised to provide preferential policies and measures for land, taxation and project approval for the new cotton textile new project.

　　 The joint venture said that the investment is in the stage of intentionality. The company did not hold a board of directors to consider this investment. According to the articles of association of this company, this investment shall be submitted to the board of directors and shareholders' general meeting for approval.