The Leader Of The World'S Color Spinning Industry -- Baron East

2012

Limited by Share Ltd initial public offering A shares online roadshow wonderful playback

Issue article

Q: what is the price range of the company's issue?

Answer: the price range of this issue is 13.60 yuan / share -15 yuan / share (including upper and lower limit). Since the issue price has not yet been determined online, investors who participate in online fund purchase must purchase according to the upper limit of the issuing price interval (15 yuan / share).

If the final issue price is lower than the upper limit of the issuing price range, the difference will be returned to the online investor at the same time on June 5th (T+3).

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Q: what is the scale of this issue?

A: the 150 million shares of Baron East issued 750 million shares and 20% issued.

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Q: how long does the company stock issue online?

A: the online issue date is May 31, 2012 (T), the time of purchase is the normal trading time of the Shanghai Stock Exchange (9:30 a.m. to 11:30 p.m. to afternoon).

The purchase is called "Bailong" purchase, and the purchase code is 780339.

Q: please introduce the necessity of raising funds for production and operation of the company.

Answer:

Because of its unique fashion, technology, environmental protection and other characteristics, it has extensive market prospects.

As a leading color spinning manufacturer in China, the company has persisted in implementing brand strategy for many years and attached importance to R & D investment in new technologies and products.

With the continuous development of market at home and abroad, the scale of company business has maintained rapid and steady development in recent years.

The implementation of the fund-raising investment project will not only help the company grasp the opportunities brought by the future growth of the market, but also help to improve the overall production and operation level of the company.

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Q: how will the company raise funds?

A: according to the business development goals of the company, the proceeds from this issue will be applied to the following aspects in the order of priorities, after deducting the issue cost: the annual production of 25000 tons of colored cotton textiles in Zoucheng, Shandong, the production of high-grade textiles in Jiangsu Huaian, and other working capital related to the main business.

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Q: does the company have a medium and long-term investment value? Is it worth my investment?

Answer: I am convinced that the company's stock has medium and long-term investment value.

After a long period of operation, the company already has the core competitiveness of products and technology, and has a steady style in business and finance, which greatly reduces the investment risk of investors.

In the future, as the company expands its existing capacity and implements branding and other business strategies, the company will also make rapid progress.

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Q: the stock price is affected by many factors. From the perspective of the company, how will the company reduce the risk of stock market as much as possible and bring satisfactory returns to the majority of investors?

A: after this issue, the company will follow prudent business rules and make prudent use of fund-raising funds in accordance with the purposes disclosed in the prospectus, and strive to maintain the company's sound asset quality and the steady growth of its performance.

The company will strictly operate in accordance with the requirements of laws and regulations such as the company law and the securities law, and fulfill the obligation of information disclosure in a timely, accurate and complete manner in accordance with the relevant provisions of the China Securities Regulatory Commission and the Shanghai stock exchange, so as to serve investors' investment decisions.

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Industry articles

Q: after the economic crisis, trade protectionism between the US and Europe is right.

What are the effects of import and export?

A: the trade frictions between China and the US and European countries in textile import and export trade increase with the economic crisis, which is mainly reflected by the restrictions imposed by developed countries on special safeguard, quantity management, intellectual property, green barrier, anti-dumping, countervailing, and technical standard of textiles in China.

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Q: cotton prices fluctuate risk. Does the company buy futures to hedge the risk of price fluctuation?

Answer: cotton is the main raw material needed for the production of the company. The company's investment in futures is limited to cotton. Combined with the cotton market situation and futures trading experience in recent years, the company has formed a certain concept of futures use, and the company will use the futures to buffer the operating effect of cotton price fluctuation to a certain extent.

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Q: in January 2012, the Ministry of industry and information technology released the "12th Five-Year" development plan for the textile industry. Can you introduce it?

A: according to the plan, the industrial added value of textile enterprises above designated size increased by an average annual growth rate of 8% during the "12th Five-Year" period. The total export volume of the whole industry increased by 7.5% annually. The product quality level was further improved, the brand building ability was significantly enhanced, 5-10 brands with international influence were formed, 100 famous brands with high awareness in the domestic market, 50 brands with annual sales income exceeding ten billion, and the proportion of brand products exports reached 25%.

At the same time, the plan also puts forward that in the traditional textile sub sectors, the utilization level of natural fiber resources such as cotton, wool, linen and silk should be improved, and the research and development of new spinning and weaving technologies with high efficiency and energy saving should be strengthened, and the diversification and upgrading of textile products should be realized.

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Q: what policy support does the country have for the textile industry this year?

A: in recent years, the state has given a series of policy support to the textile industry, such as the "12th Five-Year development plan" of the textile industry, the outline of the scientific and technological progress of the textile industry in 12th Five-Year, the guidance catalogue for the adjustment of industrial structure, the notice on accelerating the structural adjustment of textile industry to promote industrial upgrading, and the policy guidance document of the textile industry adjustment and revitalization plan.

It is clearly pointed out that "we should speed up the structural adjustment of the textile industry, pform the traditional labor intensive industry into a technology intensive and capital intensive industry, advocate the application of new and high technology to pform traditional industries, further rely on technological innovation to raise the level of textile science and technology, rely on technological innovation to increase the technological content and added value of products, and raise the international competitiveness in an all-round way."

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Management section

Q: what is the main business of the company?

A: the company is mainly engaged in R & D, production and sales of colored spun yarn, including pure cotton colored spun yarn, blended yarn and so on.

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Q: would you please explain the company's recent liabilities?

Answer: the total liabilities of the company at the end of the reporting period are 2 billion 742 million 818 thousand and 200 yuan, 3 billion 155 million 105 thousand and 100 yuan and 3 billion 35 million 316 thousand and 300 yuan respectively.

From the scale of liabilities, the company's debt scale remained at around 3 billion yuan, and remained stable overall.

At the end of 2009, the total liabilities of the company decreased by 501 million 233 thousand and 100 yuan, a decrease of 15.45%, and the total liabilities at the end of 2010 increased by 412 million 286 thousand and 900 yuan, an increase of 15.03%. At the end of 2011, the total liabilities decreased by 119 million 788 thousand and 800 yuan at the end of 2010, with a decrease of 3.80%.

The decrease in total liabilities at the end of 2009 and the end of 2011 was mainly due to the decrease in current liabilities. At the end of 2009, the current liabilities decreased by 448 million 973 thousand and 900 yuan, a decrease of 19.26%. At the end of 2011, the current liabilities decreased by 496 million 756 thousand and 200 yuan at the end of 2010, with a decrease of 18.68%.

The increase in total liabilities in 2010 was mainly due to increased short-term borrowing to prepare cotton purchase funds and the investment of Bailong investment for short-term loans to acquire subsidiaries.

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Q: at the end of 2010, there was a sharp rise in Monetary Fund. Could you explain the specific reasons?

A: the reason for the sharp rise in the company's monetary fund at the end of 2010 was that the increase in cotton prices in the year made the company increase short-term loans to prepare for the purchase of raw materials. The company introduced new shareholders in September 2010, and invested 420 million yuan in late September.

The company has established good cooperative relationship with banks based on brand advantage and scale advantage. Under the situation of macroeconomic fluctuation and bank credit strategy adjustment, the company can maintain an appropriate scale of funds to ensure the daily operation of the company and lay the foundation for long-term development strategy.

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Q: is there any competition among shareholders?

A: in order to ensure the integrity of assets of listed entities, improve their business structure and eliminate competition in the same industry, the company reorganized the related assets and brought them into the listing system before restructuring, so there is no competition between shareholders and listed companies.

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Q: what are the technical advantages of the company?

A: the main technical advantages of the company are as follows:

1) compared with the traditional textile industry, the company breaks through the defects of traditional yarn single color and innovatively develops a unique mixed color and single yarn style with the method of "pre disperse fiber dyeing and post mixed colored spinning". The product has high technology content and processing additional value, and the unit output energy consumption and pollutant emissions are significantly reduced.

2) as the industry leader, the company pioneered a number of colored spinning industries in China, such as the first colored spinning enterprise with the Chinese invention patent of disperse fiber dyeing and fiber blended yarn spinning technology, and the first colored spinning enterprise rated by the national textile product development center as the "national cotton colored spinning development base".

3) the new product development and innovation mechanism of the company has matured and achieved fruitful research and development results, such as the successful introduction of new style yarn such as segmented yarn, imitation point yarn, spun yarn and so on, and deep chemical modification of natural fibers and regular launching of popular color cards.

Q: what is the purchasing pattern of the company?

Answer: cotton is the most important raw material purchase material of the company. It mainly adopts three modes: centralized procurement of producing areas, sporadic purchase of origin and purchase of imported cotton.

The company has set up cotton purchase and processing base in Xinjiang Akesu area, Kashi region and Bayinguoleng Mongolian Autonomous Prefecture and so on. During the new cotton marketing period, it concentrates on purchasing and processing high quality cotton to local cotton growers. The sporadic purchase is directly oriented to the cotton price producers in the vicinity of the production plant to adopt the parity principle and the payment method after the goods arrive and check, and select cotton suitable for the company's products to produce.

At the same time, according to the market situation, the company uses the auction of national cotton reserves and the use of futures cotton to control the procurement cost of cotton. Besides, the company also imports some lint from abroad to make up for the vacancies in domestic procurement.

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Q: is the company's procurement channel single? Can you introduce it to us?

A: at present, the company has set up a cotton purchase and processing base in Akesu, Xinjiang, Kashi and Bayinguoleng Autonomous Prefecture to purchase and process high quality seed cotton to local cotton farmers.

The company has also actively expanded the purchase scale of overseas cotton and other fibers, and ensured the stable and sufficient supply of raw materials through various channels.

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Question: how does the company guarantee the quality of the spinning link?

Answer: the quality is the guarantee of the product and the vitality of the company. Our company has always paid attention to the management of the quality of the product.

The company now has nearly one million spindles, most of which are equipped with domestic advanced equipment suitable for small batch and multiple yarn processing. Some key processes are imported from Switzerland, Italy, Japan and Germany.

The company has a large central laboratory specially equipped with USTERHVI, SPETRUM full-automatic cotton tester, Swiss USTER TESTERIV IV automatic sliver tester and so on, to monitor the production of colored spun yarn before, during and after delivery to ensure product quality.

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Q: innovative enterprises have the prospect of development. What are the new products developed by Baron east?

Answer: the company, as the "national cotton colored spinning development base", which is awarded by the national textile product development center and the "national cotton colored spinning base" awarded by the Chinese cotton spinning and weaving industry association, will take this opportunity to focus on strengthening the development and innovation ability of new products.

The company's new product research and development is guided by market demand, and has successfully developed SUPIMA natural products, such as cotton, linen, spun silk, cashmere, shrinkproof wool and other natural dyed fabrics. Modal dyed products such as modal fiber, bamboo fiber, Tencel fiber, soybean protein fiber, alginate fiber, milk protein fiber, corn fiber and other functional dyed yarn dyed products, such as UV resistant polyester, antibacterial fiber, air conditioning fiber, fast drying polyester, heat preservation fiber, moisture absorption and sweat perspiration fiber, have recently been introduced, such as cationic yarn, satin colored yarn and innovative yarn series. The strength of new product development has always been the leading position in the color spinning industry.

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Q: can you tell us what you think of the brand?

A: with the further escalation of consumption in China, China's textile industry has entered the brand era from upstream yarn manufacturing to terminal retail.

A famous brand is often the result of entrepreneurs who invest a lot of manpower and material resources in many aspects such as product quality, product design, brand image building, technology level, production efficiency and marketing network. It is the most important intangible asset of an enterprise.

The BROS brand owned by the company is also through the joint efforts of the company's entrepreneurial team and many employees. Its brand value has now been fully recognized by customers. The new entrants of the industry can hardly compete with the company in a short time in terms of brand.

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Q: what is the governance structure of the company? Is it standardized and in line with the requirements of the listed companies?

A: in accordance with the requirements of relevant laws, administrative regulations and normative documents, such as the company law, the securities law, the guidelines for the articles of association of listed companies, the company has revised the articles of association, established and improved the system of shareholders' meeting, board of directors, board of supervisors, independent directors and Secretary of the board of directors, and gradually formed a standardized corporate governance structure.

Since the establishment of the company, the shareholders' meeting, board of directors and board of supervisors and other institutions and personnel can operate independently and effectively in accordance with relevant laws, regulations, articles of association and relevant rules of procedure, and fulfill their duties and obligations.

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Development chapter

Q: Chairman, what is the development strategy of the company in the future?

A: with the goal of "the leader of the global colored spinning industry" as the vision of the company, the company deepens its business structure reform under the guidance of the national industrial policy, strengthens product innovation research and development, and develops business at home and abroad, optimizes the service process, enhances the efficiency system and the rapid reaction mechanism of the market, and actively promotes the Chinese textile and garment industry. Based on mutual benefit, taking bold and daring as the benchmark, pragmatic and rigorous as the creed, it striving to win more opportunities for cooperation and development and make greater contributions to the reform and development of the textile industry.

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Q: will the company increase its future?

A: we will consider the financing and financing methods in view of the demand for funds in the course of the development of the company.

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Q: can the company explain the general policy of dividend distribution?

A: on the basis of fully considering the requirements and wishes of shareholders, the company will balance the relationship between shareholder dividends and the company's cash retention, adhere to the consistency and consistency of dividend distribution policy, and establish a more scientific and reasonable investor return mechanism, so as to ensure the maximization of long-term interests of shareholders while giving consideration to shareholders' return and enterprise development.

Considering all the factors, the company has formulated the following dividend return plan: the company will distribute dividends in cash, and the profit allocated in cash is no less than fifteen percent of the distributive profit realized in that year.

The annual dividend growth is no less than the net profit growth of that year.

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Q: what is the market development and network marketing plan of Baron east?

A: the company will make full use of the influence of its own brand, take this listing issue as an opportunity to strengthen the publicity of the brand, continue to stabilize and expand the overseas market, at the same time, increase the cultivation of the domestic market, increase the intensity of brand promotion, and make use of modern network information technology, deepen cooperation with e-commerce network companies, and gradually establish a perfect network marketing platform.

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Attending guests

Mr. Yang Weixin, chairman of Bailong Oriental Limited by Share Ltd

Mr. Han Gongjin, general manager of Limited by Share Ltd, Baron East.

Ms. Hong Pan, director and deputy general manager and Secretary of the board of directors of Limited by Share Ltd

Mr. Zhong Zhengyuan, chief financial officer of Limited by Share Ltd

Mr. Ye Xinjiang, managing director of CITIC Securities Limited by Share Ltd

Mr. Liu Shunming, senior representative of CITIC Securities Limited by Share Ltd vice president

Mr. Li Haosheng, vice president of Limited by Share Ltd, CITIC Securities.

Mr. Lei Chen, senior manager of CITIC Securities Limited by Share Ltd