Jihua Group, Which Has 2 Billion Spare Cash In Hand, Smashed 600 Million To Rebuild 100 Mu Old Factory Area.

Zhejiang Jihua Group Limited by Share Ltd (hereinafter referred to as "Jihua Group") issued a notice on March 13th that the company and its subsidiaries would increase the use of 800 million yuan of idle private funds to carry out cash management, that is, the amount of cash management used by the company to use its own funds would be no more than 1 billion 200 million yuan (including 1 billion 200 million yuan), and the total amount of funds invested in stocks and funds should not exceed 100 million. Yuan (including 100 million yuan) is adjusted to no more than 2 billion yuan, of which the total amount of funds invested in stocks and funds is not more than 100 million yuan, and investment scope is designed for stocks, funds, bonds, financial products, etc.


Ji Hua group said that the company increased its use of its own funds for cash management purposes to improve the efficiency of the use of funds, is expected to bring relevant benefits.


On the same day, Kyrgyzstan group also announced that the company's production line in Hongshan farm, Xiaoshan District, Hangzhou, was relocated to Linjiang Industrial Park in 2007. The company plans to invest 652 million yuan to transform the idle land and old factory area of the Hongshan farm into "Jihua Innovation Industry Park", with "manufacturing + office" mode of "building factory", serving high-end manufacturing, biomedicine and other emerging industries. Industry based enterprises, and through the way of collecting rent to create economic benefits.


It is understood that the total investment of the above projects is 652 million yuan, covering an area of 74306.13 square meters (about 111.5 acres). The total construction area of the project is 1 billion 947 million 499 thousand square meters, with a floor area of 139693.2 square meters and an underground area of 55056.7 square meters. The construction period of the project is 3-5 years, and is divided into two phases. One phase (2020 -2022) mainly built high-end manufacturing areas, financial platform areas, and R & D area, part of life supporting area and underground parking lot; the two phase (2023 -2024) is the main construction of the intelligent Wulian area, airport service area, cultural and creative area, part of life supporting facilities and underground parking lots.


It is estimated that in normal years (eighth years), the expected operating income is 179 million yuan, net profit is 88 million 208 thousand and 900 yuan, the after tax internal rate of return is 11.75%, the net financial value after tax is 193 million yuan, the pre tax investment recovery period is 11.84 years, the after tax investment recovery period is 13.42 years (including construction period), and the breakeven point is 23.1%. The specific economic and technical indicators of the project are as follows:


Kyrgyzstan group said that the above projects can revitalize the company's idle assets, create new economic growth points, and make new contributions to the regional economic development.


Insiders said that since 2018, Kyrgyzstan group's cross-border investment has been closely related to the increasingly stringent environmental policy, especially when the Tian Jia Yi incident directly impacts the dye industry pattern. At that time, the accident caused the surrounding River to be permanently shut down, and the intermediate capacity of the enterprises such as Ru Tu, Ji Hua and anothem were limited. The production of the azo disperse dyes has been reduced by 6-7 tons. Moreover, the withdrawal of related enterprises has made the synergy of the industry easier. It is expected that the industry concentration will continue to improve in the future with the government's more stringent environmental policies and local governments such as Zhejiang, Guangdong and Jiangsu.


Affected by the accident in Xiangshui, Yancheng in March 2019, the trend of dye price rising is obvious. However, the price of products in the three quarter began to decline after the weaker demand in the lower reaches. The results showed that Ji Hua Group achieved a business income of 2 billion 60 million yuan in the first three quarters of 2019, down 5.66% compared to the same period last year. The net profit attributable to shareholders of listed companies was 410 million yuan, down 25.38% from the same period last year.


Soochow securities analyst Chai Qin Hu has said that for the plate sector, the supply side reform has been going on for more than 4 years, and many products are at a high price. At the same time, due to a slight difference in the enforcement of supply side reforms in different regions of the country, the environmental regulation of individual chemical industry provinces is coming to an end. The impulse to expand industries is difficult to contain and the bulk chemicals are under pressure. As far as the external environment is concerned, China is an important manufacturing center for chemical products in the world. However, the foundation of global economic recovery is not reliable, and the trade frictions between China and the United States remain unresolved. The external demand of many products is not clear.


Up to now, the supply side reform of most of the economically developed coastal areas has entered the second half, and environmental remediation in some areas has come to an end. Many bulk chemicals are facing pressure from expansion of production capacity, insufficient demand and downward price.


Nationwide, the supply side reform is steadily deepening, and the opportunity is nurtured in some fine chemical products. Due to the different scales of environmental enforcement in different regions, the domestic fine chemical enterprises seldom choose an integrated development mode. In the current industrial environment, the investment threshold of intermediate enterprises has been greatly enhanced. On the one hand, the production and operation of enterprises are continuously impacted because they belong to small and scattered enterprises. In this process, enterprises that adhere to integrated and coordinated development are likely to be stronger and bigger.


Moreover, the current global economic situation is complicated, showing that the foundation of the global economic recovery is not reliable, and the trade frictions of major economies are intensifying. China is the world's most important chemical manufacturing center. Many products also have uncertain demand. As a result, Chai Qin Hu judged that due to the complexity of the external situation, the future system arbitrage and mode innovation, the difficulty of achieving rapid counterattack on platform dividends is becoming more and more serious. Big capital and big innovation have become the new direction of the industry development.


According to public information, Kyrgyzstan group is mainly engaged in R & D, production and marketing of dyes, dyestuff intermediates and other chemical products. Dyes include disperse dyes, reactive dyes and other products. The company has 70 thousand tons of disperse dyes, 15 thousand tons of reactive dyes, 10 thousand tons of other dyes, 20 thousand tons of HIC, 330 thousand tons of sulphuric acid, 2500 tons of paint, 6000 of polyurethane foam. Tons.