New Australia Textile Faces Main Predicament: Business Oriented Single Preferential Policy Is Not In Place.

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Xiaobian of the network to introduce the new Australian textile is facing the main predicament: business oriented single preferential policy is not.

With the goal of expanding production capacity and paying debts, the Zhejiang new Australia textile Limited by Share Ltd (new Australia textile) intends to make public offering of new shares and the company's public offering shares to no more than 26 million 680 thousand shares, raising a total of 430 million 570 thousand yuan, respectively, to invest in the company's "20000 spindles high-grade wool worsted ecological yarn project" and "repay 100 million yuan bank loan project".

New Australian textile said that the use of fund-raising will focus on the main industry, expand the production capacity of high-end wool spinning products, enhance the competitiveness of the company in the high-end market, and repay some bank loans, reduce financial costs and enhance profitability.

This expansion plan will not only increase the capacity of the company, but also make the main business of the company more concentrated and increase the market risk faced by the company.

Business orientation is single

Main research and development, production and marketing of worsted yarn.

The main products are wool worsted yarn and intermediate wool top, and the market depends on the downstream textile and garment industry.

The main revenue of the company is almost entirely completed by the wool spinning and wool top business. From 2011 to 2013 and the first half of this year, the total sales revenue accounted for 95.74%, 98.04%, 97.81% and 98.05% of the main business revenue respectively.

In 2013, the sales revenue of wool spinning finished 937 million 444 thousand and 300 yuan, accounting for 66.49% of the main revenue of the company, and the sales income of wool top was 441 million 497 thousand and 400 yuan, accounting for 31.32%.

The expansion project is the expansion of the capacity of the company's original 44000 spinning capacity, which will further increase the scale of the worsted production.

The original spinning capacity of the company can produce 5600 tons of worsted yarn per year, and has 7000 tons of bar and 10000 tons of modified processing capacity and 8000 tons of wool yarn dyeing ability.

With the increase of the fund-raising project, the annual production capacity of 2280 tons of high-grade worsted yarn will be increased.

The new capacity of the investment projects will mainly focus on the wool spinning business of the company, which will make the main business of new Australia textile more concentrated. With the release of some investment and output capacity, the proportion of the business has increased significantly, and sales in the first half of this year rose to 72.10%.

With the promotion of investment projects, this proportion is likely to rise to more than 80%.

New Australia textile believes that the company has not extended to the downstream fabric and clothing production in the development, and has highlighted the main business, and insists on doing the fine and strong spinning intermediate industry. It can concentrate on building its own competitive edge in the spinning field.

However, the concentration of main business will also increase the market risks.

This has been highlighted in the company's existing business operations.

The wool top business of the company also accounted for half of the company's main business in 2011, with sales revenue of 607 million 883 thousand and 300 yuan, accounting for 41.70%.

However, during the reporting period, due to the decline in downstream market demand and the decline in raw wool prices, the business revenue fell sharply. In 2012, it was 571 million 980 thousand and 600 yuan and 441 million 497 thousand and 400 yuan in 2013. The income in the first half of this year was 219 million 477 thousand and 100 yuan, accounting for only 25.95% of the company's revenue.

Meanwhile, the price of wool tops also dropped sharply, from 112 thousand and 700 yuan per ton in 2011 to 87 thousand and 200 yuan / ton in the first half of this year.

The shortage of market demand resulted in a lot of idle production of new wool wool in new Australia. The output in the first half of this year was 2589.34 tons, which only utilized 30% of the final production capacity.

During the reporting period, the income of new Australian textile based on two businesses was not stable. In 2011, the company's revenue increased by 390 million 455 thousand yuan, an increase of 36.27%. In 2012, it was only 21 million 889 thousand and 700 yuan, a slight increase of 1.49%. In 2013, it fell to 60 million 195 thousand and 800 yuan, a decrease of 4.04%. The increase in the first half of this year was 8 million 338 thousand and 400 yuan, an increase of 0.98%.

New Australian textile is in the wool spinning industry, and the main revenue also has obvious seasonal fluctuation risk.

Every year from March to November is the peak demand season, resulting in the company's performance fluctuating and high inventory.

As the company's main business tends to be concentrated, the new Australian textile will also face greater market volatility risks, which will bring great instability to the growth of performance.

Preferential policies are not in place.

The growth of New Zealand's textile industry has been accompanied by uncertainties and preferential tax policies.

Prospectus shows that from 2011 to 2013, new Australian textile achieved operating income of 1 billion 467 million yuan, 1 billion 489 million yuan and 1 billion 429 million yuan respectively, with net profit of 101 million yuan, 80 million 410 thousand yuan and 101 million yuan respectively.

As a new textile in the wool textile industry, it was reexamined by high and new technology enterprises in 2011. The eligibility period is 3 years, and the preferential rate of enterprise income tax is 15% from 2011 to 2013.

From 2011 to 2013, the new Australian textile company earned 6 million 921 thousand and 800 yuan, 5 million 879 thousand and 700 yuan and 6 million 680 thousand and 700 yuan income tax deduction respectively, accounting for 6.84%, 7.31% and 6.60% of the current consolidated net income respectively.

But from the first half of this year, the advantage of new Australian textile will no longer contribute to profits. In the prospectus, the company said that because of the expiry of the qualification of high and new technology enterprises, the first half of 2014, the company made a prepayment of the declaration income tax at 25% of the corporate income tax rate, and did not enjoy the preferential policies of the high and new technology enterprise income tax rate, which would have some influence on the performance of the company in the first half of the year.

In the first half of this year, the income tax paid by New Zealand textile was 18 million 98 thousand and 500 yuan, almost equal to the income of 19 million 729 thousand and 100 yuan in 2013.

Judging from the current qualifications, New Zealand textile will no longer enjoy the tax qualification of high-tech enterprises or will become the norm.

According to the requirements for the management of high-tech enterprises in 2008, the requirements for personnel and R & D input of high and new technology enterprises must meet the requirements of "over 30% of the total number of workers and staff members who have a college degree or above. The R & D personnel account for more than 10% of the total number of workers employed in the enterprise. The enterprises with sales income of more than 200 million yuan in the past year and the total research and development expenses in the past three fiscal years accounted for no less than 3% of the total sales revenue" can apply for the qualification of high-tech enterprises.

As of June 30, 2014, there were only 276 employees in the 2162 new Australian textile workers, accounting for 12.77%, and the proportion of R & D personnel was lower.

At the same time, there are 308 employees with a college degree or above, accounting for 14.25%, which is far below the 30% required by high-tech enterprises.

That is to say, the new Australian textile has no standard to apply for the qualification of high-tech enterprises. The company will have to pay corporate income tax at 25% tax rate in the future, which will reduce the profit margins of enterprises.

During the reporting period, new Australian textiles also enjoyed a number of government grants. From 2011 to 2013 and the first half of this year, the operating income was 1 million 459 thousand yuan, 1 million 408 thousand and 200 yuan, 6 million 621 thousand and 100 yuan, and 543 thousand and 300 yuan respectively.

The fluctuation of government subsidy policy also results in the instability of corporate net profit.

At the same time, the new half Australian textile, which relies on export markets for the most part, enjoys the "exemption, offset and refund" export tax rebate policy. At the same time, it faces not only the risk of the export tax rebate policy changes, but also the foreign market textile import policy and product quality barrier test.

New Australia textile said frankly, if the relevant policies and regulations or import and export related policies of the industry have undergone significant changes, the company's business performance will be adversely affected.

Recruitment and display of "Oolong"

What is more surprising to the market is that as an active IPO company, the new Australian textile company did appear on the stock investment project.

The new Australian textile prospectus shows that the "20000 spindles high-grade wool worsted ecological yarn project", which has invested 330 million 570 thousand yuan in new Australia textile industry, has been approved by the Environmental Protection Bureau of Tongxiang for environmental protection in 2011 and has embarked on construction for a period of two years.

The value added tax rate of the project product is 17%, the urban maintenance and construction tax and the education surcharge are paid by 7% and 5% of the value added tax respectively, and the income tax is paid by 25% of the total profit. After the project is expected to be released, the average annual operating income of the company is 555 million yuan, and the total profit is 88 million 260 thousand yuan.

As of June 30, 2014, the project has invested 130 million 616 thousand and 800 yuan in the initial stage, and has reached 8080 tons of spinning production capacity, initially forming an annual production capacity of nearly 1000 tons.

According to this calculation, the progress of new Australian textile fund-raising project construction has been completed nearly 40% before June 30th this year.

However, as early as January 2013, according to the Jiaxing Daily reported, the new Australian textile "20000 spindles high-grade wool worsted ecological yarn project" has already completed the total plan.

60% of the 350 million yuan will be put into operation before October 2013, when the sales revenue will be increased to 500 million yuan and 100 million yuan will be realized.

Is there a deviation in media reports or a lack of rigour in the new Australian textile industry? There are obvious fighting in the two data. The media pointed out that the construction of the new Australian textile and investment project has "regressed". After more than a year of construction, the new Australian textile investment project has achieved "crossing".

But the difference in information disclosure will be a stumbling block for the company to go public.