Cotton Prices Rose To Become The Fuse &Nbsp; Lian FA Intends To Spend 1 Billion 18 Million To Improve The Industrial Chain.

This year

The joint venture shares (002394) with raw cotton and raw yarn as raw materials are also frequently recruits. Following the disclosure of the futures set value in early November, the company plans to spend 1 billion 18 million yuan on the construction of the Xinjiang cotton textile base, expanding its main capacity to expand the marketing network system, and comprehensively improving the industrial chain.

In an interview with reporters, Wang Yi Xin, deputy director of the joint stock company, talked about the idea that the company had invested in Xinjiang. The rise in cotton prices has prompted the company to make up its mind to invest in Xinjiang.

Rise to build factories and self-sufficiency

Cotton prices have hit record highs this year. Cotton prices have risen by more than 100%. Cotton futures in October reached a maximum of 28 thousand yuan per ton.

After a period of high price cotton and no cotton can be bought, cotton resources undoubtedly affect the nerves of cotton spinning enterprises, and the battle for cotton is also growing.

Until the state sold the national reserve cotton, the cotton prices continued to rise sharply.

Cotton share prices have also dropped sharply, and textile companies have been slow.

The cotton fight has brought profound memories to the public textile enterprises.

Wang Yi Xin, deputy director of the joint stock company, told reporters that the raw materials of the company were purchased in the cotton producing areas throughout the country, including Xinjiang and some imports.

The price is on the market.

Wang Yixin said: "the rise in cotton prices has a certain impact on the cost of the company.

As a result of various measures, the impact on the company's performance is not large.

Up to the estimated increase.

The joint stock issue was listed on the small and medium-sized board in April this year, issuing price is 45 yuan.

The company has an integrated industrial chain from spinning, weaving to shirt production.

According to Wang Yixin, Lian FA shares had thought of investing in Xinjiang a few years ago.

Mainly from two points: 1., establish a stable supply base for raw materials, and 2. countries and Xinjiang's preferential policies for investment.

In November 26th, the announcement of the announcement of the joint venture shares announced that in order to speed up the pace of extending the upstream industry chain to the cotton textile industry, the company plans to invest 600 million yuan to invest in the construction of 200 thousand spindles of cotton spinning projects in the textile industrial park of Akesu, Xinjiang.

The announcement said that in order to make full use of the advantages of cotton resources in Akesu, Xinjiang, a wholly owned subsidiary, Haian Lian FA cotton spinning 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 people's Government of Xinjiang. According to the framework agreement, the joint venture cotton spinning intends to invest 200 thousand yuan of cotton spinning project in Xinjiang Akesu City Textile Industrial Park, with a total investment of 600 million yuan.

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 industrial chain, give full play to the advantages of the brand, technology and management of the company. More than 80% of the products processed by the investment project are necessary to match the raw materials needed by the company, so as to achieve the goal of win-win 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.

Wang Yixin said that although Xinjiang has high investment in cotton prices, it is mainly to improve the industrial chain and establish its own raw material base.

"Because this project is compatible with the company's capacity and combined with the preferential policies of Xinjiang, this project can achieve the desired results.

Whether to increase investment to see the needs of market and enterprise development.

In this investment, 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 to make full use of the scale advantages of cotton resources in Akesu, Xinjiang, to speed up the extension of the cotton textile industry chain, and to bring into play the advantages of the company's brand, technology and management, so as to achieve the win-win goal of cooperation.

Raise funds to expand capacity

Build independent brand

In addition to investing in Xinjiang, the joint stock issue is also disclosed. After deliberation by the board of directors, the company intends to use 418 million yuan to raise funds to expand production capacity, improve marketing network, supplement liquidity and repay bank loans.

Specifically, the joint venture company decided to use the over raised fund of 215 million yuan to implement the technical pformation project of high-grade yarn dyed fabric and eventually form an annual production capacity of 105 million meters.

The joint stock company also plans to implement the marketing network system construction project with 200 million yuan of over raised funds to help it realize its pformation from OEM mode to OBM mode (independent brand enterprise).

The construction period of the former is expected to be 13 months, and the project capital is 215 million 358 thousand yuan, of which 201 million 466 thousand yuan for construction investment, and 13 million 892 thousand yuan for the bottom up liquidity.

All the funds of the project will be invested by the listed super fund with the progress of the project.

According to the company's forecast, the total profit of the project in the normal year is 66 million 29 thousand yuan, and the profit after tax is 49 million 522 thousand yuan.

After tax, the financial internal rate of return is 24.56%, the total investment yield is 27.34%, and the investment recovery period has a construction period of 4.96 years.

The construction period of the latter is expected to be 36 months, and will be put into use at the same time.

In the first year of the construction period, 105 million 600 thousand yuan will be invested. It will be invested by the company's over raised capital in the form of an additional registered capital. The investment in the second year will be 43 million 600 thousand yuan, and the investment in the third years will be 49 million 840 thousand yuan, and the investment in fourth years will be 3 million 120 thousand yuan, and the three year will be raised by 1:1.

It is predicted that the total sales revenue of the project will be 466 million 128 thousand yuan (including tax) after the completion of the project. The total profit in the first year of the project will be 9 million 12 thousand yuan, second yuan 18 million 625 thousand yuan, 32 million 481 thousand yuan for third years, 35 million 192 thousand yuan for the fourth to six years, 37 million 447 thousand yuan for seventh years, and the total annual profit for each year after eighth years is 37 million 447 thousand yuan.

After tax, the financial internal rate of return is 17.50%, the total investment yield is 21.13%, and the investment recovery period has a construction period of 6.96 years.