Two Production Lines Were Eliminated, Jilin Chemical Fiber Lost 25% Of Revenue

Jilin

The company's announcement today shows that as the overall equipment of the two 7500 ton production lines is aging, it will be eliminated by the end of this year.

Statistics show that two production lines were purchased in the 50s and 60s of last century, the original value was 14 million 847 thousand and 400 yuan, and the net value was 1 million 492 thousand and 700 yuan.

Therefore, elimination will not cause significant asset losses to the company.

However, after consulting the information, the reporter found that the elimination of capacity is probably the main business income of viscose staple fiber.

Jilin chemical fiber 2010 annual report shows that the annual revenue of viscose staple products is 565 million 95 thousand and 400 yuan.

At the same time, according to China chemical network data, as of April 1st, the price of viscose staple fiber was 28 thousand and 400 -2.93 yuan per ton.

The average annual production capacity of viscose staple fiber is about 19550 tons.

Therefore, the elimination of 15 thousand tons of capacity is almost all.

Viscose filament is one of its main businesses, accounting for 24.21% of the main revenue.

"Before the end of the year, if there is no other production line to make up for the vacancy of the eliminated capacity, Jilin chemical fiber will face the risk of losing part of its revenue."

Some analysts pointed out.

As early as in the early July, the media reported that Jilin chemical fiber lost nearly three yuan in the past 400 million years, and wanted to increase its stock by 50% to raise 1 billion 300 million yuan.

And the fundraising project will be the integration of bamboo pulp and bamboo fiber.

The purpose of the investment is to further improve the existing bamboo fiber production system and industrial chain, and further improve the company's operating income structure.

It is worth mentioning that this is a new round of financing plan following the failure of the company's announcement of the refinancing plan in April 2010.

But the main obstacle to this addition is that the issuance of more than 50% of present equity means that the earnings per share of Jilin chemical fiber will be greatly diluted, which is one of the main reasons for institutional investors to stop.