The World'S Largest Dyed Fabric Leader, Lu Tai, Who Supplies Fabrics For UNIQLO, Has Done 800 Million Crazy Things.

Lu Tai textile Limited by Share Ltd (hereinafter referred to as "Lu Tai A") announced today (May 22nd) that the fifteenth meeting of the board of directors adopted the motion on the use of part of the idle funds raised by the company for cash management, and agreed that the company should not use more than 800 million yuan to raise funds in the idle capital collection while guaranteeing the demand for capital investment projects. It is necessary to buy a low risk, safe, and highly liquid guaranteed financial product with a term of no more than 12 months from the date of the fifteenth session of the ninth board of directors.

The bulletin shows that, with the approval of the securities and Futures Commission, A issued a total value of 1 billion 400 million yuan to the public on the 9 day of April. The balance of Switching Company bonds can be deducted from the sponsorship underwriting fee. The balance of the issuance of convertible bonds is 1 billion 388 million yuan, which has been remitted to the designated savings account designated by the sponsor in April 15th. The total net proceeds collected from the above collection and collection fund after deducting 2 million 540 thousand yuan, including lawyers, accountants, credit ratings, information disclosure and issuance fees, amount to a total of 1 billion 385 million yuan.

The A fund is scheduled to be used for the following purposes:

Among them, the functional fabric intelligent ecological park project (phase I) is located in the northern side of Lu Tai Industrial Park, Zichuan District, Zibo City, Shandong province. After the completion of the project, the production capacity of the top grade functional fabrics with an annual output of 35 million meters will be formed. Among them, the dyed woven functional woven fabrics are 11 million meters / year, the dyed knitted fabrics are 12 million M / year, the dyed functional fabrics are 9 million M / year, and the functional composite fabrics are 3 million M / year.

The total investment of the project is 1 billion 145 million yuan, of which 930 million yuan is invested in the construction. The fund will be invested by 850 million yuan, which will be implemented by Shandong Lu Lian New Material Co., Ltd., a subsidiary of the company. It is estimated that the annual operating income of the project will reach 888 million 837 thousand and 500 yuan per year, with an average annual net profit of 82 million 150 thousand and 500 yuan.

The production line of high-grade printing and dyeing fabric is located in the existing factory area of Lufeng Textile Dyeing Co., Ltd., Jiao Wang Lu, Huang Jia Pu town, Zichuan District, Zibo. After the completion of the project, an annual production capacity of 25 million meters high grade printing and dyeing fabric will be formed, of which the white fabric is 10 million M / year, the dyed fabric is 5 million M / year, and the printing fabric is 10 million M / year.

The total investment of the project is 378 million yuan, of which 263 million yuan is invested in construction. The 250 million yuan will be invested by the company's controlling subsidiary Lufeng weaving and dyeing Co., Ltd.. It is estimated that the operating income of the project will reach 499 million yuan per year, with an average annual net profit of 24 million 877 thousand and 400 yuan.

Lu Tai A explained that as the company raised capital investment projects to build a certain cycle, the project investment process needs to be gradually invested in the investment process, there will be some idle in the short term, in order to make reasonable use of funds, improve the efficiency of capital use, increase the company's income and ensure the maximum benefit of the stock, so as to ensure that it does not affect the construction of the capital raising project and the normal operation of the company, and can effectively control it. In case of risk, some idle funds are collected for cash management.

Public information shows that Lu Tai A's main products include high-grade shirts, dyed fabrics, printing and dyeing fabrics, garments and so on. According to the products, in 2019, the income of fabric products decreased by 0.33% compared with the same period last year, the gross profit margin decreased by 0.17pct, the income of shirt products increased by 0.61%, and the gross profit margin increased by 0.65pct.

Regionally, the export revenue of Ru Tai A increased by 0.34% compared to the same period last year, and domestic sales fell by 3.65%. During the reporting period, the proportion of sales to Southeast Asia (again to developed countries), Europe, America, Japan and South Korea accounted for 30.55%, 16.58% and 6.43% respectively.

In 2019, the gross profit margin of A was increased by 0.23pct compared to the same period last year, and the cost rate increased by 2.06pct over the same period. Sales cost rate, management R & D rate and financial cost rate rose by 0.17pct, 1.18pct and 0.70pct respectively. At the end of the year, company accounts receivable increased by 37.56% compared with the beginning of the year, inventories increased 15.67% compared with the beginning of the year, and net cash flow of operating activities decreased by 24.07% over the same period last year.

Lu Tai A currently has 293 million tons of textile fabric production capacity, 20 million 300 thousand years of textile and garment production, and 18% of the global yarn dyed fabric market, which is the largest shirt fabric manufacturer in the world. The utilization rate of textile products is maintained at over 90% throughout the year. The company's products are mainly exported, with less than 40% of the domestic sales, and the export products are mainly exported to Europe and the United States (17.8%). And Southeast Asia (29.22%), customers include UNIQLO, OLYMP apparel, PVH (subordinate clothing brands including CalvinKlein, TommyHilfiger, etc.).

Orient Securities analyst Shi Hongmei believes that in the short term, by the impact of the spread of domestic and international epidemic, Lu Tai A faces greater challenges this year. It is estimated that the order pressure in the two quarter will be greater than the first quarter. However, the company's prior announcement that the transfer of part of Rongchang's biological stake will make positive contributions to the company's profit this year. In the medium to long term, Lu Tai A has been one of the internationally competitive manufacturing enterprises in the textile and garment industry. In April this year, the company issued 1 billion 400 million convertible bonds to invest in the functional fabric intelligent Eco Park Project (phase I), the high-end printing and dyeing production line project, etc. In recent years, the expansion of Vietnam and domestic capacity will continue to support the extension of growth and profitability of A and consolidate the leading position of the company in the global high-end yarn dyed fabric industry.

According to the financial report, in 2019, the total revenue of A reached 6 billion 800 million, down 1.1% compared with the same period last year. The net profit attributable to shareholders of listed companies was 950 million, an increase of 17.4% compared with the same period last year, and the earnings per share were 1.11 yuan. In the first quarter of 2020, the company realized 1 billion 250 million of its total business income, a 18.9% decrease compared to the same period last year, and the net profit attributable to shareholders of listed companies was 104 million yuan, down 46.96% from the same period last year. Basic earnings per share of 0.12 yuan.