China And Thailand Chemistry Received 156 Million Textile Special Subsidy Funds, Just Because Viscose, Yarn Production Capacity Is Rising.

Xinjiang Zhongtai chemical Limited by Share Ltd (hereinafter referred to as "Zhongtai chemical") announced in the evening of February 12th that the company's alarfa Fulda, Bazhou Jinfu and Fuli Zhen Lun received special subsidy funds totaling 156 million yuan recently.

The above government subsidies will have a positive impact on the company's operating performance in 2019.

Reporters read the announcement to understand that the above specific subsidy funds are as follows:

(1) Bazhou Jinfu has received a total of 64 million 640 thousand yuan of textile and clothing special subsidies in 2019 from the Finance Bureau of Korla economic and Technological Development Zone, Xinjiang.

(two) Fuli Zhen received a total of 53 million 700 thousand yuan of textile and clothing special subsidies from Xinjiang Finance Bureau of Korla economic and Technological Development Zone in 2019.

(three) alar rich received the special appropriation fund for textile and clothing in 2019, which was prepaid by the Financial Bureau of the Aral economic and Technological Development Zone, 27 million 170 thousand yuan, 6 million yuan for the standardized factory building subsidy, 1 million 626 thousand and 100 yuan for the electricity subsidy fund, and 3 million 305 thousand and 700 yuan for the sewage subsidy fund, totaling 38 million 101 thousand and 800 yuan.

Public information shows that China and Thailand are located in Urumqi, Xinjiang.

In December 2001, it was established by launching the main products including PVC, ion-exchange membrane caustic soda, hydrochloric acid and other chlor alkali chemical products, and viscose fiber and spinning and other chemical fiber products, and engaged in related material circulation and import and export business.

The products are widely used in more than 20 major industries, such as oil, chemical industry, light industry, textile, building materials, national defense and so on. It is one of the large enterprises in the country's large chlor alkali chemical industry.

Analysts believe that China and Thailand as the industry leader in chemistry, in Xinjiang, which has the advantage of natural resources, found a suitable industry for its own development conditions: caustic soda, PVC and viscose textile, after rapid development in recent years, has become the industry leader.

As a local SASAC, the expansion of capacity and assets is in line with the state's policies. At the same time, along with the trend of the development of the industry and the westward advance of the chemical industry, we expect that the assets of the company will still maintain a relatively fast growth rate in the future.

It was learned that in August 30, 2018, a production line of alar's 200 thousand tons annual cellulose fiber production project was successfully launched at one time, output products and another production line were expected to be trial production in September 2018. At that time, alar will have an annual production capacity of 340 thousand tons of viscose fiber, and the company will complete the industrial layout of viscose fiber in southern Xinjiang.

At the same time, Jinfu yarn industry 1 million 300 thousand spindles two phase 650 thousand spindles, three stage 200 thousand spindles spinning projects and Fuli Zhen Lun 2 million spindles spinning first phase 1 million spindles spinning project all completed and put into operation. Insiders believe that this capacity growth will play a positive role in Promoting Sino Thai Chemical profitability and core competitiveness.

XinDa securities analyst Guo Jingpu believes that the textile industry is a labor-intensive and market fully competitive traditional industry. China's textile industry has strong competitive advantages in the international market, with low labor cost advantages and a complete upstream and downstream industry chain in the middle and low end market.

In 2015, the State Council promulgated the "guiding opinions on supporting the development of Xinjiang's textile and garment industry to promote employment", so as to attract local enterprises and talents to build Xinjiang according to local conditions.

Since 2014, various departments of the Xinjiang Autonomous Region government have formulated many preferential policies in terms of freight subsidy, raw material subsidy, loan interest discount and tax revenue in the textile and garment industry. In 2017, only 198 million 684 thousand and 500 tons of freight subsidy were granted to China and Thailand, and 198 million 919 thousand and 100 yuan of interest was paid on working capital loans.

Data obtained show that in 2017, China and Thailand achieved 41 billion 60 million yuan in business revenue, an increase of 75.75% over the same period, and a net profit attributable to the parent company of 2 billion 402 million yuan, an increase of 30.31% over the same period last year.

In the first three quarters of 2018, China and Thailand achieved 45 billion 183 million yuan in business revenue, up 68.04% over the same period last year. Net profit attributable to parent companies was 2 billion 10 million yuan, down 1.69% from the same period last year.

The cost of the company increased by 8.46% over the same period last year, and sales expenses rose much more, mainly due to the rapid rise in the scale of the company's trade in commodities, while the financial expenses and management expenses remained stable. In the first three quarters, the company produced PVC133.17 million tons, 927 thousand and 600 tons of caustic soda, 378 thousand and 100 tons of viscose fiber, 1 million 961 thousand and 200 tons of calcium carbide, and 9 billion 522 million degrees of electricity generation.

The output of chlor alkali business has increased slightly. During the reporting period, the production of viscose fiber in Alar's lilda has increased, and the production of viscose business has increased.

According to the supply and demand situation of the industry and the company's current business and future development plans, without considering the financing of the Sino Thai chemical industry, Guo Jingpu predicted that China's Thai chemical business revenue will reach 612.34, 643.54 and 67 billion 589 million yuan in the past 2018-20 years, up 49.14%, 5.10% and 5.03%, respectively. The net profit attributable to the shareholders of the company is 27.68, 31.72 and 3 billion 741 million yuan respectively, representing an increase of 15.22%, 15.22% and 15.22% over the same period.

Guo Jingpu said that China and Thailand found a suitable industry for their own development conditions in Xinjiang, a region with innate resource advantages: caustic soda, PVC and viscose textile.

As a local SASAC, the expansion of production capacity and assets is in line with the national policy. At the same time, with the development trend of the industry and the westward development of the chemical industry, it is expected that the chemical assets of China and Thailand will still maintain a relatively fast growth rate in the future.