The Most Cotton Textile Giant Lu Tai Voted 2 Million To Invest In This Company, Only To Improve Its Own Printing And Dyeing Technology.

Lu Tai textile Limited by Share Ltd (hereinafter referred to as "Lu Tai A") announced today (April 6th) that in April 3rd, the company signed a "share transfer agreement" with Shandong Zhong Kang Guo advanced printing and Dyeing Technology Research Institute Co., Ltd. (hereinafter referred to as "Tai'an Kang Guo Chuang"), the Tai'an public opinion energy saving equipment Co., Ltd. (hereinafter referred to as "public opinion energy saving"). China holds a 2% stake in China, which pays 0 yuan for Tai'an's public opinion energy saving.

Founded in August 22, 2019, China has registered capital of 100 million yuan, of which 29 million yuan has been subscribed to Tai'an's public opinion energy saving (which has not yet fully paid its registered capital) and holds 29% stake in China. After consultations between the two sides, the company acquired a 2% stake in the Tai'an energy and energy conservation group, and the pay and consideration price for Tai'an's public opinion energy saving was 0 yuan. After the completion of the equity transfer, the investment obligation of 2 million yuan will be borne by Lu Tai A.

The registered address of Zhong Kang Guo is located at 63 Ming Tang Road, the eastern New District of Tai'an, Shandong, with a registered capital of 100 million yuan. It was established in August 22, 2019. Its main business is the research and development of advanced printing and dyeing technology and equipment, the operation of intellectual property rights, the transformation of technological achievements, and the technical services.

Lu Tai A said that the completion of the transaction will enable the company to gain more support in the application of advanced textile printing and dyeing technology, improve the technology level, product quality and competitiveness of the company in the textile and dyeing industry, and accumulate strength for the high quality development of the textile industry.

According to public information, Lu Tai A is a textile and garment enterprise group with integrated vertical production capacity, which integrates cotton planting, spinning, dyeing, weaving, finishing and clothing. It mainly produces and sells products of middle and high grade shirts, dyed fabrics, garments and other products.

Lu Tai A is currently the world's largest manufacturer of high-grade yarn dyed fabrics and the first line brand shirt manufacturer in the world. Its performance has been the top ten in the cotton textile industry for many years. About 70% of the company's products are sold to more than 30 countries and regions, including the United States, the European Union and Japan. Among them, the export of the company's own brand fabric accounts for more than 70%. At present, the company's yarn dyed fabric production capacity accounts for about 18% of the global high-end shirt dyed fabric market.

Most of the products of A are autonomous production, and the proportion of outsourcing processing is less than that of all orders. Generally speaking, the independent production of the company adopts the order production mode. The company organizes and completes production according to the requirements of customer orders. The company has cotton subsidiary, spinning mill, weaving plant, bleaching and dyeing plant, finishing plant and garment factory. It has a complete production system from cotton planting to garment processing, and each branch has different production processes and production tasks.

Because Lu Tai A's current production capacity is still unable to meet the needs of some customers, some orders need to be commissioned by collaborative enterprises. The company has maintained a long-term cooperative relationship with the entrusted processing enterprises. Commissioned processing enterprises mainly undertake the production of reed, weaving and other links, and also involve a small number of other production processes. The company assigns the factory staff to supervise the production process entrusted to processing, entrustment to complete the process after the completion of the process, and the quality management department of the company is responsible for quality inspection, and finally stores.

According to the financial report, in the first three quarters of 2019, Lu Tai A achieved operating income of 4 billion 810 million yuan, down 4.2% from the same period last year, and net profit of 590 million yuan to the parent company, an increase of 0.2% over the same period last year. The net profit after deducting the net profit decreased by 6.99% compared with the same period last year.

Lu Tai A estimated that the company's profit in was 900 million yuan - 1 billion 50 million yuan, a profit of 812 million yuan in the same period last year, an increase of 10.90%-29.39% over the same period last year. For the reasons for the change in its performance, Lu Tai A explained that it was caused by the change in the fair value of the financial assets held by the company. The impact of non recurring gains and losses on net profit is estimated to be 150 million yuan to 280 million yuan.