New Feng Ming 3 Billion 200 Million Investment In Dushan Energy PTA Two Phase Start, East Of The Picturesque Hangzhou Bay!

The local polyester filament giant new Feng Ming Group Limited by Share Ltd (hereinafter referred to as "Xin Feng Ming") announced in March 5th that the company decided to start construction of the green intelligent PTA project with an annual output of 2 million 200 thousand tons in the two phase of Dushan energy. The project is located in the Pinghu Dushan Port Economic Development Zone in Jiaxing, Zhejiang. It plans to build 357.58 mu of new land, and build 132 thousand and 600 square meters of new PTA installations, product warehouses, R & D buildings and so on.

It is planned to be put into operation in the three quarter of 2020.

The total annual investment of the green intelligent PTA item in the two phase of the Dushan energy phase is 2 million 200 thousand yuan. The total investment is 3 billion 200 million yuan, of which 2 billion 960 million yuan is invested in construction (including 80 million 400 thousand US dollars in foreign exchange) and 240 million yuan in the bottom floor. The funds needed for the project investment are raised by the enterprises themselves or partly applied for bank loans.

The project management period can provide the society with about 260 long-term employment opportunities.

At the same time, after the project is completed and put into operation, it will indirectly bring employment opportunities to downstream industries such as chemical fiber, packaging, pportation and so on. The employment multiplier effect of the project is obvious.

New Feng Ming said that the new material of chemical industry is the key development industry of Jiaxing Binhai New Area and Pinghu Dushan port area. The operation of the project can not only increase the concentration of local PTA industry, improve the productivity and efficiency of PTA, optimize the structure of petrochemical industry, but also make full use of the local petrochemical industry technical management personnel, solve the employment problem of local labor force, and improve the living standard of local people.

At the same time, enterprises should increase environmental protection investment in the production process and improve the recycling rate of resources and energy. Therefore, they can basically eliminate the adverse effects on the surrounding environment.

New Feng Ming said that the sales price of the above items was determined according to market conditions, and the estimated annual operating income was 12 billion 102 million yuan.

The value added tax of the year of production is 210 million yuan, and the business tax and the additional estimate are 21 million 15 thousand yuan. After calculating, the total profit of the normal year is 6.45 yuan, and the profit after tax is 480 million yuan.

Reporters learned here that at present, the new Feng Ming has formed 3 million 700 thousand tons of polyester filament production capacity, with the company's subsequent filament production capacity gradually put into operation, PTA demand will further increase.

The construction of the green intelligent PTA project in the two phase of Dushan energy phase 2 million 200 thousand tons per year is mainly to meet the needs of the company's own production to PTA. After the completion of the construction, it can meet the PTA supply of the new growth silk production capacity and further enhance the comprehensive competitiveness.

Public information shows that the new Feng Ming is China's leading civilian filament filament enterprise. Currently, it has a capacity of about 3 million 300 thousand tons of polyester filament, ranking second in the domestic filament industry, of which 2 million 500 thousand tons of POY (pre oriented yarn), 600 thousand tons of FDY (full stretch wire), and 200 thousand tons of DTY (stretch textured yarn).

At the same time, the company is building 600 thousand tons of polyester filament, mainly differentiated products. It will optimize the product structure of the company and further enhance the company's market share in the industry.

In addition, the new capacity of 2 million 200 thousand metric tons of PTA under construction is expected to be put into operation in the three quarter of 2019, when the company's industrial chain will extend to the upstream to enhance the company's comprehensive competitive advantage in the industry.

Overall, the company as a professional polyester filament industry leader, the scale of production continues to expand, the comprehensive strength continues to grow.

The total capacity of new Feng Ming in the civilian filament industry ranks second in the country, of which more than 75% are POY varieties.

In 2017 and 2018, the company raised funds through IPO and issuing convertible bonds respectively, to build new capacity and pform existing capacity, and optimize the product structure of the company.

Huang Lili, an analyst with CITIC Securities, said there are two main reasons for the new production capacity of polyester filament in the first tier enterprises. First, the production capacity of new polyester filament needs larger investment in fixed assets. The investment volume of a production line with a scale of tens of thousands of tons often varies from several hundred billion to more than one hundred million. The cost of financing for Non-listed Company is higher. Two, polyester filament is a typical chemical production process with obvious scale effect.

At present, the polyester filament monomer relates to the capacity of 200 thousand tons and 400 thousand tons. Taking the POY device as an example, 400 thousand tons of capacity investment is about 3500 yuan / ton, compared with the 200 thousand ton single ton capacity investment cost of about 1500 yuan, according to the 10 year time limit depreciation, the single ton cost reduced 150 yuan or so.

At present, there are still parts of the scale below 200 thousand tons or even tens of thousands of tons. The depreciation cost is even higher, and the production capacity of 400 thousand tons of polyester is considered to be the optimal monomer capacity scale in the industry.

Huang Lili believes that the new Fung Ming fund-raising investment project is progressing smoothly. It is expected that about 800 thousand tons of civilian filament production will be released by the end of 2018. The 2 million 200 thousand ton PTA project is expected to be put into operation in the three quarter of 2019. In the first quarter of 2020, there will be another 280 thousand tons of civilian filament production. The gradual release of production capacity will provide support for the growth of new Feng Ming in the next few years.

New Feng Ming announced its annual report on March 1st evening. In 2018, the company achieved operating income of 32 billion 659 million, an increase of 42.22% over the same period last year. Net profit was 1 billion 423 million, down 4.91% compared to the same period last year, and the earnings per share were 1.69 yuan.

The company intends to increase 4 shares in every 10 shares and distribute dividends of 1.8 yuan (including tax).