Last Year, A Net Profit Of 390 Million Of The Joint Venture Shares Was Approved By Indonesia'S 13 Billion Investment In High-Grade Fabric Projects.

The world's leading producer of yarn dyed fabric, Jiangsu Luen FA textile Limited by Share Ltd (hereinafter referred to as "Lian FA joint-stock") released its annual report in 2019 on the evening of April 22nd. During the reporting period, the company achieved operating income of 3 billion 910 million yuan, a decrease of 6.19% compared with the same period last year, and realized operating profit of 509 million yuan, an increase of 0.36% compared to the same period, and realized a net profit of 390 million yuan, an increase of 0.06% over the same period last year.

During the reporting period, the production project of high-grade home textile grey cloth and supporting yarn constructed by the joint stock investment project has obtained the necessary approval process and pre formalities before the project is put into operation, and initially formed the scale of production of 200 looms and 50 thousand spindles. The project takes advantage of the regional advantages of Xinjiang and has obvious cost advantages. It supplies the raw materials for home textile fabrics to the downstream processes of the company, guarantees the stable supply of home textile fabrics, improves the layout of the home textile industry chain, and enhances the competitiveness of the products of the home textile fabrics, laying the foundation for the company to realize the layout of home textile industry.

? ? In response to the changes in the global textile industry's trade pattern and to meet the needs of the garment industry in Southeast Asia for high-end woven fabrics, lufa joint venture with PTU, one of the largest garment manufacturers in Indonesia, invested in the construction of top grade 66 million tons of woven fabric items in Indonesia for a total investment of 190 million US dollars. The Indonesian limited company has obtained the approval of the Ministry of justice and human rights of Indonesia.

In 2020, the joint venture share plan:

1, steadily promote the production of high-grade household textile grey cloth and matching yarn in Xinjiang, and build the brand of home textile fabric around the goal of building the whole industry chain of home textile, forming a certain popularity and increasing the added value.

2, speed up the Indonesian top grade woven fabric project, conform to the development trend of the industry, face Indonesia's local and global markets, undertake some orders transferred from the domestic market, and form complementary complementary with the domestic industry chain, laying the foundation for the company's global layout.

3, strengthen the integration of resources within the group and improve the overall efficiency. Adjust the strategic positioning of each subsidiary to adapt to the changing trend of the market.

4, strengthen product research and development, and combine marketing with R & D. With the newly established "high quality textile technology research institute", we have systematically developed product development and intelligent research and application. Strengthen product development services to customers, and strive to form a comprehensive strategic partnership with customers.

5, promote intelligent and information-based transformation, build intelligent demonstration workshop, and promote production mode to flexible, efficient and intelligent direction.

6, continue to maintain the advantages of spot fabrics, further develop and expand around the market.

7, adjust product mix, research new varieties, new processes and new materials, increase product diversification, meet market needs.

? ? Earlier reported that the joint venture shares with Indonesia PTUngaranSariGarments (hereinafter referred to as "PTU") cooperation in Indonesia to invest in the construction of an annual output of 66 million meters of high-grade woven fabrics, the total investment is estimated at $190 million (about 1 billion 306 million yuan - the first textile net note), of which 165 million 87 thousand yuan of fixed assets investment, liquidity 24 million 956 thousand U.S. dollars, divided into two phases. Implementation, the first phase will form an annual production capacity of 36 million Beige weaving, and the second stage will form an annual output of 30 million meters of dyed and dyed fabrics.

It is estimated that the annual income of the joint venture is expected to reach US $120 million, and the investment recovery period will be 8.2 years, with a total investment return rate of 11.6%.

Indonesia has a large population and a relatively well-developed garment industry. In 2017, the total export volume of textile and apparel reached 12 billion 537 million US dollars, mainly exported to Europe, America and Japan. After long term investigation, local clothing companies have a high degree of recognition for their products, and they have an urgent need for improving fabric quality and shortening delivery time. The construction of the project will make up for the gaps in the local textile industry chain, consolidate the core competitiveness of the company's products, shorten the delivery time, and meet the needs of the company's strategic customers.

Lian FA shares said that the global textile industry and trade pattern is undergoing more obvious changes, and speeding up the global layout of the company is of strategic importance. The garment industry in Indonesia has a strong demand for high-grade woven fabrics, and has great market potential and space. PTU, as a large local garment enterprise in Indonesia, cooperate with the company to accelerate the development of the project, expand the local market and strengthen the joint efforts.

The joint venture believes that the project's investment and construction will help to extend the core competitiveness of the company in the field of high-grade woven fabrics, speed up the global layout of the company, adapt to the trend of the development of the textile industry, and have a positive impact on the company's future business revenue and company performance.

Public information shows that the joint venture shares is a large high-tech enterprise with the whole industry chain of ginning, spinning, dyeing, weaving, finishing, knitting, home textile, printing and dyeing, garment making, thermoelectricity, sewage treatment, brand operation and warehousing and logistics. It has a production scale of 320 thousand spindles, an annual production of 160 million meters of dyed cloth, 60 million meters of printing and dyeing cloth, 11 million pieces of garments, 6000 tons of knitted yarn and knitted fabric dyeing, and 72 million mm production capacity of home textiles.

Luen Fat has a garment factory in Kampuchea, and has subsidiaries or offices in the United States, Hongkong, Italy, Bangladesh and other countries and regions. It is expected to invest in new construction in Indonesia, which is expected to produce 66 million meters of high grade woven fabric production base. In the future, the company will continue to achieve the layout of the global production base, and make full use of the advantages of tariff and labor resources to enhance the global competitiveness of enterprises.

? ? Lian FA shares has the world's largest bobbin seed storehouse and code supermarket. The largest commercial fabric library and clothing Library in China has built international standards of constant temperature and humidity room, chemical analysis room and other experimental sites. The world's most advanced Worster tester, Martin Dan M pilling tester and sun fastness tester have been imported from more than 600 spinning sets. A sample center for dyeing, weaving and clothing.