Xinxiang Chemical Fiber Increased Funding To Introduce State Assets In Xinjiang, 60 Thousand Tons Of Cotton Lint Every Year.

In order to promote the landing and development of the company's business in Xinjiang, the local viscose filament and spandex industry leader, Xinxiang chemical fiber Limited by Share Ltd (hereinafter referred to as "Xinxiang chemical fiber"), announced that in order to reduce the company's debt level and enhance its profitability, the company will further enhance the overall strength of the company. The company intends to introduce Xinjiang production and construction force through non-public offering of shares. Group Third Division (hereinafter referred to as "third divisions") and Tumu Shuker City Investment Group Co., Ltd. (hereinafter referred to as "map city voted") as a strategic investor.

After the completion of the non-public offering, the Xinjiang Construction Corps, the third division, has a shareholding ratio of more than 10%, which is expected to become the third largest shareholder of the company. The Xinxiang chemical fiber will also play a synergistic role with the city in the textile industry.

According to the content of cooperation, Xinxiang City chemical industry also ensures that under the same conditions, the chemical fiber in the city of Xinxiang will receive the necessary raw materials such as cotton lint and so on. The actual supply will not be lower than the enterprise demand or not less than 60 thousand tons. At the same time, in the third division area, priority should be given to the protection of Xinxiang chemical fiber demand, to the supply of water, sewage, power, steam and so on.

In addition, it will rely on local resources and operation subsidiaries to provide logistics and transportation, import and export clearance for Xinxiang chemical fiber, and tap and build government communication channels.

Xinxiang chemical fiber is preparing to raise funds through fixed increase. The total amount of planned fund-raising will not exceed 555 million yuan. The net amount after deducting the issuance cost will be used to repay bank loans and replenish the working capital, so as to optimize the assets structure. According to the Xinxiang chemical fiber disclosure 2020 annual non-public offering plan shows that the company intends to 3.7 yuan / share price, to the city of the city issued no more than 150 million shares, after the completion of the issue, the figure city investment share of 10.66%.

Xinxiang chemical fiber said that after the completion of the non-public offering, the main business of the company remained unchanged, and there was no plan to integrate the business and resources related to the non-public offering. This non-public offering will help to optimize the company's capital structure, enhance the company's total assets and net asset size, and provide a strong guarantee for the company to further play its main business advantages.

Deng Sheng, an analyst with CITIC Securities, said that Xinxiang chemical fiber was set up in Xinjiang in 2011, and a wholly owned subsidiary, Xinjiang egret Fiber Co., Ltd. was established. The subsidiary company is mainly responsible for the production of raw materials and cotton pulp, and the annual output of cotton pulp is up to 40 thousand tons. Map city voted to ensure that the company received raw materials such as cotton lint, and close to Xinjiang subsidiary, reduce freight costs, support in logistics and transportation, import and export clearance, to help companies expand the international and domestic markets.

The first textile net was informed that the Xinjiang egret, a subsidiary of Xinxiang chemical fiber company, planned to provide stable cotton pulp. But due to tighter environmental protection, higher raw material prices, and weather and transport factors, the capacity is not fully released, and the performance is not as good as expected. In 2017, the company made a large amount of asset impairment losses. In 2018, Xinjiang egret adjusted its management mode, optimized enterprise operation and meticulous management of enterprises, and realized turning losses into profits.

　　 According to the financial report, as of the end of 2019, the short-term loan of chemical fiber in Xinxiang was 849 million yuan, an increase of 257 million yuan compared with 2018, and the long-term borrowing at the end of 2019 was 2 billion 25 million yuan, an increase of 443 million yuan compared to 2018. In 2019, the financial cost was 123 million yuan, an increase of 61.5% over the same period last year. At the end of 2018, the asset liability ratio was 53.5%, higher than the industry average level of 45.2%. Taking account of the above reasons, the total amount of funds raised by the company's non-public offering is not more than 555 million yuan, of which 400 million yuan will be used to repay bank loans and the rest to supplement liquidity.

First textile network reporter learned here that Xinxiang chemical fiber main viscose filament, viscose staple fiber and spandex production and sales, now has 70 thousand tons of viscose filament production capacity, ranking first in the country, 120 thousand tons of spandex production capacity, ranking the top three in China, viscose filament and spandex double faucet.

Taking a look at the history of Xinxiang chemical fiber industry, the core idea of its development can be summarized as "Bao Chang silk and spandex". Specifically, in the field of viscose filament, Xinxiang chemical fiber is an old leading brand. After more than ten years of development, the industry shuffled. In the field of spandex, with the help of the advanced technology of Zhengzhou Zhongyuan spandex, the company grew into a competitive spandex enterprise in China after 2014. In the field of viscose staple fiber, Xinxiang chemical fiber production capacity and cost advantage is not strong, so in 2013 after the gradual reduction of production, the annual output from the peak of 107 thousand and 500 tons to less than 20 thousand tons in 2019. Because the company has been short of production capacity and started production (60 thousand tons of old capacity, expanded to 100 thousand tons in 2010), the basic depreciation has been completed, resulting in a smaller loss of production.

Overall, Xinxiang chemical fiber has formed the core competitiveness of capacity, technology and cost in viscose filament and spandex industry, and will continue to plough these two industries in the future.

The same trend can be seen from the income and gross profit ratio of chemical fiber in Xinxiang. The viscose filament income and gross profit are relatively stable, and the income and gross profit of spandex are in a fast rising trend as a whole.

Since the second half of 2018, the price difference of viscose filament has continued to rise, which has become the main promoter of the growth of Xinxiang chemical fiber. In 2019, the prices of dissolving pulp, caustic soda and viscose filament were 6406 yuan / ton, 3094 yuan / ton, 37782 yuan / ton respectively, down 14.5%, down 26.1% and 0.02% respectively, and the price difference of viscose filament was 24742 yuan / ton, up 2794 yuan / ton compared with the same period last year; the first price difference in 2020 was 26702 higher. Since the end of March, the spread of overseas epidemic has begun to decline, and demand for filament has been temporarily negative. In 2019, Xinxiang chemical fiber viscose fiber production capacity of 70 thousand tons, accounting for up to the national level.

33%, it is expected that the production capacity will reach 80 thousand tons in 2020, which will further consolidate the leading position. The company's continuous spinning process capacity accounts for more than 70%, and its production efficiency is high, while the domestic average level is only 42.9%.

According to the financial report, in 2019, the total revenue of chemical fiber in Xinxiang was 4 billion 800 million, an increase of 6.9% over the same period last year. The net profit attributable to the owners of the parent company was 130 million, an increase of 14.6% compared with the same period last year, and the earnings per share were 0.1 yuan. During the reporting period, the gross profit margin of the company was 15.5%, an increase of 2.9 percentage points over the previous year and a net interest rate of 2.7%, which basically maintained the level of the previous year.

During the reporting period, Xinxiang chemical fiber production viscose filament 61422 tons, completed 102.37% of the plan; viscose staple fiber 8622 tons, completed 28.74% of the plan; production spandex fiber 82577 tons, completed 91.75% of the plan.

Shen Gang Securities researcher Cao Chengan believes that in recent years, Xinxiang chemical fiber company has been expanding spandex and viscose filament production capacity, the new capacity of the more advanced production processes and equipment, capital investment is relatively high, so the company in recent years, the scale of fixed assets has maintained rapid growth, the observation: 2013-2018 years, Xinxiang chemical fiber capital expenditure totaled 2 billion 840 million yuan, the first three quarters of 2019 Capital expenditure was 513 million yuan, which exceeded the level of 2018. In 2018, the fixed assets scale of the company was 4 billion 270 million yuan, an average annual growth rate of 14.1% since 2013. As of 2019, the fixed assets scale of the company in the three quarter was 5 billion 40 million yuan, a further increase of 18% compared with the beginning of 2019, and the growth rate of the fixed assets scale of the company nearly accelerated in the past three years.

Cao Chengan predicted that in 2020, Xinxiang chemical fiber 20 thousand tons / year biomass cellulose phase I project put into operation, capital spending is expected to slow down temporarily. In the next few years, only Xinxiang chemical fiber and Jilin chemical fiber production expansion, it is estimated that in 2020 the domestic top three enterprises will reach 90% of the viscose filament production capacity, and the concentration of the industry will further improve, and the viscose filament Market under the oligopoly pattern is expected to usher in the scene. Gas upstream cycle, and with a series of new projects put into operation continuously, Xinxiang chemical fiber will grow in the next few years.

The latest quarterly report shows that in the first quarter of 2020, Xinxiang chemical fiber realized 930 million of total business revenue, down 28.4% from the same period last year, and realized net profit of 46 million 344 thousand, an increase of 148.4% compared with the same period last year, and the earnings per share were 0.04 yuan. During the reporting period, the gross profit margin of the company was 20.4%, an increase of 8.5 percentage points over the same period, and the net interest rate was 5%, an increase of 3.5 percentage points over the same period last year.

By the evening of the first textile net in June 2nd, Xinxiang chemical fiber reported at 3.4 yuan / share, or 1.49%, and its market value was 4 billion 276 million yuan.