Nanjing Chemical Fiber Company Temporarily Suspended Production For Three Months, Only Because Viscose Staple Fiber Sales Too Difficult!

Viscose fiber, tap water production and marketing and real estate development operator, Nanjing chemical fiber Limited by Share Ltd (hereinafter referred to as "Nanjing chemical fiber") recently announced that since the second half of 2018, viscose staple fiber market continued to slump, the company viscose staple products sales difficulties, inventory continued to rise, the company decided to suspend production temporarily from now on to repair inventory.

The company will determine the recovery time according to the viscose staple market situation, and it is expected that the production time will not exceed three months.

Reporters learned here that since the second half of 2018, the domestic viscose staple fiber production enterprises have concentrated the new production capacity, making the viscose staple fiber market appear "oversupply and falling prices" pattern, and the downstream textile products export is not smooth, the viscose staple fiber sales price has dropped from 14 thousand yuan / ton to near 11 thousand and 600 / ton, or more than 17%, viscose staple fiber sales difficulties.

Viscose staple production enterprises continued to rise in product inventories and operating rate declined. The stock of viscose staple fiber in Jiangsu Jinling is now over 15 thousand tons.

It is understood that Jiangsu Jinling Cellulose Fiber Co., Ltd. was established in September 2002 and is a wholly owned subsidiary of the company. Its registered capital is 400 million yuan.

Legal representative: Li Xiang; address: Gangzha, Jiangsu, Dafeng City, south head, main business: differential viscose staple fiber and pulp, paper production and sales.

As of December 31, 2018, the main financial data of the company and Jiangsu golden antelope are as follows (audited):

Reporters learned that Nanjing chemical fiber original viscose filament 80 thousand tons / year, viscose filament 20 thousand tons / year production capacity.

At the same time, the company also set up a joint venture with Austria Lan Jing group to set up Lan Jing (Nanjing) Fiber Co., Ltd., which owns 30% equity interest in Lan Jing (Nanjing), and is the shareholder of the company.

The production capacity of rayon (Nanjing) has a capacity of 160 thousand tons per year.

In October 26, 2018, the company shut down the viscose filament production line, and no longer had viscose filament production capacity.

In December 14, 2018, Nanjing chemical fiber completed the pfer of the 30% stake in Lan Jing (Nanjing) all relevant procedures, no longer holds the stock of Lan Jing (Nanjing).

Based on the above changes, as of the end of 2018, Nanjing chemical fiber has viscose staple fiber production capacity of 80 thousand tons / year.

Nanjing chemical fiber has formulated the development strategy of "main business upgrading and business structure adjustment". Based on the main industry of viscose fiber, we will push ahead with the construction of Lyocell short fiber production project with an annual output of 40 thousand tons, promote the upgrading of the main industry of viscose fiber, and actively explore mergers and acquisitions business, change the single status of the company's production structure, and realize the "two wheel drive" development as soon as possible.

The reporter learned that, in 2018, Nanjing chemical fiber company completed the "non public development bank stock scheme of 2016", and issued 59276727 shares to 5 specific investors, including the controlling shareholder, the new industrial group, the subscriber was subscribed in cash, the issue price was 6.36 yuan / share, and the total fund raised was 377 million yuan, and the fund-raising fund was all in place in early April 2018.

In accordance with the relevant resolutions of the company's first provisional shareholders' meeting in 2019, the fund-raising fund is intended to be used in the first stage project of the new solvent method cellulose fiber (Lesel) project with a total investment of 2 billion yuan and an annual output of 100 thousand tons (40 thousand tons / year) of the Lesel fiber project.

The announcement shows that the total investment of the 40 thousand ton / year project of the project is 876 million yuan (source of funds: raise funds, and some enterprises raise their own funds), including 800 million yuan of fixed assets investment.

The project was commissioned by the Jiangsu textile industry design and Research Institute to complete the feasibility analysis report. After thorough investigation and investigation and evaluation by third party organizations, the construction address was located in the factory of Farber ear company located in the new material industry park of Liuhe District, Nanjing. The main body is Nanjing Farber ear Textile Co., Ltd.

The project is scheduled to start construction in February 2019 with a construction period of 2 years and is expected to be completed and put into operation in January 2021.

According to the financial report, in 2018, Nanjing chemical fiber realized total revenue of 991 million yuan, down 38.36% from the same period last year, and realized net profit of 6 million 207 thousand and 200 yuan attributable to shareholders of listed companies, a net loss of 303 million yuan in the same period last year, and a net profit of 95 million 729 thousand and 200 yuan attributable to shareholders of listed companies after deducting non recurring gains and losses. The same period last year was 48 million 847 thousand and 900 yuan in net profit; the basic earnings per share was 0.02 yuan, and each 10 shares were offered a cash dividend of 0.10 yuan (including tax).

In 2019, the main business objectives of Nanjing chemical fiber were: 1 billion 134 million yuan in operating income, 1 billion 69 million yuan in operating costs and 119 million 600 thousand yuan in the period.