On the evening of November 13, Shenma Co., Ltd. announced that the company plans to set up a wholly-owned subsidiary Henan Shenma Xianglong Chemical Co., Ltd. (subject to the name approved by the industrial and commercial registration authority) in the nylon new material industrial cluster area of Pingdingshan City, Henan Province, to construct a project with an annual output of 50000 tons of adiponitrile. The registered capital of the subsidiary is RMB 300 million, all of which are contributed by the company in cash, accounting for 100% of the registered capital.
Henan Shenma Xianglong Chemical Co., Ltd., a wholly-owned company established by the company, has a total investment of 119336 million yuan, of which the construction investment is 11425.2 billion yuan, the interest during the construction period is 20.34 million yuan, and the initial working capital is 30.5 million yuan; the construction period is two years; the average annual sales income is 1122.99 billion yuan; the internal rate of return (before tax) of investment is 16.17%（ The investment recovery period (before tax) is 6.64 years, and the investment recovery period (after tax) is 8.17 years.
After the establishment of the project company, the project company will discuss with Chongqing Zhongping Ziguang Technology Development Co., Ltd. on the use of the project technology, or purchase and pay by instalments according to the technical evaluation value, or pay a certain amount of technology use fee every year, or adopt other appropriate ways for the exclusive use of the project company. The specific method will be determined by both parties through negotiation.
According to the disclosure of Shenma Co., Ltd., adiponitrile is the key raw material for nylon 66 industrial yarn, cord fabric and chip, which needs to be imported for a long time. The construction of the project is in line with the company's leading industry, which can reduce the dependence on imported products and replace some imports. It is of great significance for the company to build a complete nylon 66 industrial chain and further consolidate the company's dominant position in the nylon industry. In the long run, the company's financial situation, operating results and future development have positive significance.
