1 Billion 931 Million! The Chinese Cotton Textile Top 20 Has Built 165 Thousand High-End Spinning And 120 Thousand Spinning Production Lines.

China's cotton spinning industry, the largest spin spinning production line in Asia and Asia's largest air spinning production base, has the top 20 competitiveness of the Chinese cotton textile industry, the Henan Xinye textile Limited by Share Ltd (hereinafter referred to as "Xinye textile"). In the evening of June 5th, the public offering convertible bond plan was disclosed, and the total amount of financing is not more than 1 billion 600 million yuan, and it will invest in 165 thousand new high-end textile products of Akesu New Cotton Industry Co., Ltd. Yarn construction projects, new functional yarn projects, medical hygienic nonwovens projects and supplementary working capital.

Among them:

1, 165 thousand spindles high-end spinning construction project

The project is a newly built project of Akesu Xinfa Cotton Industry Co., Ltd., a textile subsidiary of Xinye. The construction site is Awati County Industrial Concentration Area in Xinjiang Akesu area. After the completion of the project, the annual output of high-grade cotton combed compact spinning is about 24 thousand and 800 tons, with a total investment of 610 million yuan. The total investment in construction and equipment is 501 million 330 thousand yuan, the reserve cost is 16 million 670 thousand yuan, and the circulating fund is 92 million yuan. The project will use 493 million 10 thousand yuan to raise funds, and the project construction period is 12 months. After calculation, the internal rate of return is 17.19%, and the investment recovery period is 6.04 years.

2, 120 thousand new functional spinning production line project

The project is located in the Western District of Xinye industrial agglomeration area in Henan province. The construction period is 12 months. After the completion of the project, the annual output of the new functional yarn is about 16 thousand tons, with a total investment of 58. 5 million 500 thousand yuan, including 489 million 580 thousand yuan for construction and equipment investment, 15 million 920 thousand yuan for preparatory fees and 80 million yuan for circulating funds at the bottom. The project will use 489 million 580 thousand yuan of raised funds. After calculation, the internal rate of return of the project is 15.39%, and the investment recovery period is 6.31 years.

3, medical nonwovens project

The project intends to build 8 new medical nonwovens production lines, the construction site is West District of Xinye industrial agglomeration area in Henan Province, and the construction period is 12 months. After the completion of the project, the annual output of various types of nonwoven fabrics is about 35 thousand tons. The total investment of the project is 403 million 300 thousand yuan, of which 284 million 230 thousand yuan for construction and equipment investment, 9 million 70 thousand yuan for the preparatory work and 110 million yuan for the bottom of the project. The purpose of this project is to use 284 million 230 thousand yuan of raised funds. After calculation, the internal rate of return of the project is 20.57%, and the investment recovery period is 5.58 years.

4, supplementary liquidity

Xinye textile intends to use 333 million 180 thousand yuan of this raised fund to supplement the working capital, satisfy the company's daily production and operation capital needs, speed up the research and development of new technologies, new products and new processes, develop and update production equipment, and nurture and inspire talents. Therefore, strong financial strength helps to enhance the company's competitiveness and enhance its profitability.

Xinye textile said that the company's issuance of fund-raising investment projects is conducive to restructuring the company's products, increasing the proportion of high value-added products and enhancing the competitiveness of the company's products. At the same time, it continues to expand its capacity in Xinjiang and enhance the proportion of its fist products.

Up to now, Xinjiang's cotton output has reached over 80% of the whole country. In addition, the production of long staple cotton in Xinjiang accounts for more than 90% of the total amount of the country. Xinjiang's cotton is one of the first choice raw materials for all textile enterprises. In recent years, Xinye textile has made full use of the advantages of Xinjiang's cotton resources and the historical opportunity of the state to support the development of Xinjiang's textile industry. In Xinjiang's layout development project, it invested about 2000000000 yuan in succession, and through the mode of "new + acquisition", it formed 500 thousand ring spinning and 36 thousand Asia's largest air spinning production base, and became a new growth point of the company's efficiency.

According to the financial report, in 2019, Xinye textile realized business income of 5 billion 732 million yuan, a decrease of 5.41% over the same period last year, and net profit attributable to the parent company was 279 million yuan, 27.70% lower than the same period last year. Due to the rising cost of raw materials and other reasons, the overall revenue growth of the company is less and the profit margin of the main business has decreased.

From the perspective of profitability, the gross profit and net interest rates of Xinye textiles in 2019 were 19.65% and 4.92% respectively, up by 2.19pct and 1.50pct respectively over the same period last year. The gross profit margin of yarn was 20.57%, an increase of 1.87pct compared with the same period last year, and the gross profit rate of grey fabrics and fabrics was 21.33%, an increase of 2.69pct compared with the same period last year. The gross profit margin of cotton was 5.43%, down by 0.28pct compared with the same period last year. The decline in the overall net interest rate is mainly related to the increase in the period cost rate and the income tax rate.

According to the category, during the reporting period, Xinye textile yarn products achieved a total revenue of 3 billion 577 million yuan, down 6.36% compared with the same period last year. The fabric and fabric products achieved a revenue of 1 billion 601 million yuan, an increase of 7.09% compared with the same period last year, and cotton products achieved a profit of 534 million yuan, down 25.08% from the same period last year.

From the production and storage situation, during the reporting period, Xinye textile produced 214 thousand tons of yarn, a decrease of 2.70% compared to the same period, and sales of 178 thousand and 900 tons, a decrease of 4.74% compared with the same period last year, and yarn inventory grew 23.23% to 34 thousand and 800 tons over the same period. Xinye textile production of grey cloth and fabric 169 million meters, an increase of 7.76% over the same period; sales of 167 million meters, an increase of 6.26% over the same period; inventory grew 11.49% to 18 million 690 thousand meters.

Chen Bo, a Fortune Securities analyst, said earlier that "productivity drive + production and sales boom" is still a major factor driving the growth of Xinye's textile industry. As far as productivity is concerned, Xinye textile's current capacity mainly comes from Xinjiang Yuhua and Jinyuan. The intelligent spinning and weaving projects of this department can produce more than 170 spindles of yarn. With the increase of production load, the performance of current production capacity is expected to increase steadily. In addition, the knitted fabric project has been put into operation, and the subsequent production capacity will continue to be released. In terms of building capacity, Xinjiang's 165 thousand spinning project and its denim fabric project are expected to release capacity and contribute to the performance in late 2019. From the product aspect, Xinye textile main products are white yarn, and the textile market has a larger scope of application. The annual growth rate of yarn products can basically keep double figures, and the ratio of new products of yarn products is also gradually improving, and the market response is better. This depends on the continuous investment of the company's R & D. Since 2018, the continuous growth of R & D costs has provided continuous guarantee for the stability and improvement of the competitiveness of the company's products. In addition, from the sales point of view, the turnover rate of fixed assets of Xinye textile industry has been raised year-on-year, indicating that the production capacity projects are in the benign operation cycle, and the large customers of the company are relatively stable, and the growth of the demand is guaranteed to a certain extent. The stability of sales.

Chen Bo judged that Xinye textile as the production and marketing leader of white yarn in the cotton spinning plate, the project capacity has been continuously released in recent years, and its performance has maintained a relatively high growth rate. Future Ltd's capacity projects under construction will also gradually contribute to its performance. In addition, the company does not rule out the possibility of future new capacity projects, state-owned enterprises reform and mergers and acquisitions, and so on, and the logic of Xinye's textile growth will not change significantly.