Sinoma Technology: Investment Project (Chemical Fiber Felt Filter Material Production Line) Announcement

Securities code: 002080 securities short: Sinoma technical bulletin number: 2014-053

Announcement of Sinoma Polytron Technologies Inc investment project (chemical fiber felt filter material production line)

All members of the company and the board of directors guarantee the authenticity, accuracy and completeness of the information disclosure, without any false record, misleading statement or major omission.

I. investment projects

According to the industrial development strategy of Sinoma Polytron Technologies Inc (hereinafter referred to as "company" or "our company"), in order to better explore the application of filter materials in the electricity market, the company intends to set up a wholly owned subsidiary of Sinoma technology membrane material (Shandong) Limited (hereinafter referred to as "membrane material Shandong") in Tengzhou, Shandong, to invest 8989.44 yuan to build an annual output of 5 million square meters of chemical fiber felt filtering material production line project.

The first temporary meeting of the Fifth Board of directors of the company adopted 9 votes in favour, 0 votes against and 0 abstentions, and voted on the project of investing in the construction of "annual output of 5 million square meters of chemical fiber felt filter material production line".

According to the provisions of the articles of association, the above matters need not be submitted to the shareholders' meeting for approval.

This investment does not constitute related pactions, nor does it constitute a major asset reorganization.

Two, the basic situation of investment projects

(1) basic contents of the project

Project Name: annual production of 5 million square meters chemical fiber felt filter material production line project.

Contents of the project: the acquisition of two German AUTEFA (original nmagg) imported felt production line and auxiliary equipment of Shandong state one cable Co., Ltd. (hereinafter referred to as "Guo Yi cable"), through the technical pformation to achieve the annual production capacity of 500 yuan million square meters of chemical fiber felt filter material.

Beijing Tianjian Xingye Asset Appraisal Co., Ltd. evaluated the two felt production lines and related ancillary equipment on the basis of September 30, 2014, and issued the asset evaluation report of two filter product lines and related auxiliary equipment project of Sinoma Polytron Technologies Inc, which was purchased by Shandong state one cable Co., Ltd. (Tianxing Commentary (2014) No. 0999), and the value of equipment assets evaluation was 33 million 360 thousand and 900 yuan.

After consulting with the national cable, the company intends to purchase the two German AUTEFA imported felt production line and auxiliary production equipment for RMB 25 million yuan.

Main body: Sinoma technology membrane materials (Shandong) Co., Ltd.

Project location: the north side of Tengfei Road, Tengzhou Economic Development Zone, Shandong.

(two) total investment and progress

Investment amount: the total investment of the project is 89 million 894 thousand and 400 yuan, including 39 million 416 thousand yuan for construction investment, 50 million yuan for mobile capital and 478 thousand and 400 yuan for construction period.

Source of funds: 27 million 161 thousand and 300 yuan in its own capital and 62 million 733 thousand and 100 yuan in bank loans.

Construction progress: the construction period of the project is 6 months, construction started in October 2014 and completed and put into operation in March 2015.

(three) according to the feasibility study report compiled by Sinoma Polytron Technologies Inc Engineering Department, the project is expected to achieve an annual average sales income of 281 million 842 thousand and 100 yuan, an annual average profit of 17 million 229 thousand yuan, a total investment yield of 22.15%, and the project has better economic benefits.

(four) feasibility analysis of the project

1, in line with national industrial policy

The state has decided to focus on promoting the development of seven emerging strategic industries, such as energy conservation and environmental protection. With the increasing investment in China's environmental protection industry, environmental protection will become a pillar industry of the national economy by the year 2020.

China's economy will be in the industrial layout of coal dominated energy structure and heavy chemical industry for a long time, and air pollution is becoming increasingly severe.

With the attention of the state to environmental protection, the emission standards of air pollutants are becoming more stringent, and the superiority of bag filters will make them more widely used.

This project is in line with the national environmental protection industry policy and development direction, and will play a positive role in promoting the technological progress and industrial development of China's filter products.

2, from market driven and demand.

In 2013, the total installed capacity of the country increased by 94 million kilowatts.

Among them, thermal power increased by 36 million 500 thousand kilowatts, with a growth rate of 4.2%.

In the power industry, the demand for filter materials is generated by coal electricity and biomass power generation in thermal power plants, and the total amount of filter material is about 22 million square meters.

According to the average 4 years calculation of the service life of the electric power industry, according to the demand of the filter material and the industry development in the power industry in 2013 (the annual growth rate of thermal power installed capacity is about 5% in recent years, the proportion of bag dust removal is increased year by year in thermal power, including the demand of new projects to filter bag and the demand of old project electric bag modification), it is expected that the demand of the filter material in the domestic electricity market will reach 16 million square meters in 2016, so the application of filter material has a better market development trend in the power market.

3, meet the needs of environmental protection, energy conservation and emission reduction.

The product will be put into use in the field of advanced chemical fiber needle punched felt filter, which is urgently needed in the power industry. It can realize energy saving, emission reduction, dust control and investment in related industries, and contribute to environmental protection and sustainable development.

4. The main conclusions of expert evaluation meeting of feasibility study report

The feasibility study report is complete; the target market positioning is accurate; the investment scale is basically reasonable; the technical scheme and equipment scheme are advanced and mature; the overall construction plan of the project is feasible; the economic analysis of the project is detailed and has good economic benefits.

The project conforms to the relevant provisions in environmental protection, safety measures, occupational health and energy conservation, and the measures are reasonable; the allocation of development organization and personnel is basically reasonable.

In terms of market, the company has achieved certain results in the development of the electricity market in 2014. However, there is still lack of experience in the application of large-scale electric power projects, and the advantages of product brand and comprehensive service have not been established, so there is a risk that market development can not be achieved on schedule in a certain period.

The company will strengthen the marketing team building, increase market development efforts, and strive to increase technological innovation and product quality control, and build up the core competitiveness of products with high quality product performance, improve product market share, and ensure the realization of project revenue on schedule.

In terms of technology, the imported production line equipment has a good overall level, but it needs further upgrading and technical optimization.

The company has accumulated many years of experience in the manufacture of filter materials, and will actively organize technical forces to implement the technical pformation plan.

The implementation of this project can rapidly expand the production capacity of high-end chemical fiber felt filter materials, improve the quality of chemical fiber felt filter products, meet the demand of filter material power market and other markets for chemical fiber felt filter, further expand market share, enhance core competitiveness, and promote the development of membrane material industry.

Four, for reference

1. Resolution of the first provisional meeting of the Fifth Board of directors of Sinoma Polytron Technologies Inc

Notice hereby.

Sinoma Polytron Technologies Inc board of directors

Two October 23rd 14