On January 20, 2021, Xinfengming issued an announcement stating that the company and Jiangsu Xinyi Economic Development Zone Management Committee signed the "Investment Agreement on the Investment and Construction of an Integrated Project of New Polyester Materials with an Annual Output of 2.7 million tons".
The project intends to adopt internationally advanced large-capacity and flexible polymerization technology to construct 9 sets of polymerization devices, internationally leading melt direct spinning (straight-drawn film) production lines, utilities and other supporting facilities, 500 texturing machines, 10,000 weaving machines Machine, supporting downstream dyeing and finishing and public thermal energy center, using purified terephthalic acid (PTA) and ethylene glycol (MEG) as the main raw materials, with a view to forming an annual output of 2.7 million tons of polyester (filament, staple fiber, film, Slicing, etc.) production capacity. The project investment amount is 18 billion yuan, and the land area is about 3650 mu (including 150 mu of supporting commercial and residential land). The project construction will follow the principle of one-time planning and phased implementation to gradually build a high-end textile industrial park.
The construction period of the project is expected to be 5-6 years. According to the principle of one-time planning and phased implementation, a high-end textile industrial park will be gradually formed. The first phase of the project (600,000 tons) is expected to be put into production at the end of 2022.
It is understood that Xinfengming is located in Zhouquan, Tongxiang, a famous chemical fiber town. Since its establishment, it has always focused on the field of civilian polyester filaments. The main business is the research and development, production and sales of civilian polyester filaments, and the production of PTA (purified terephthalic acid), one of the main raw materials of polyester filaments. Xinfengming polyester filament products cover multiple series such as POY (pre-oriented yarn), FDY (full drawn yarn) and DTY (drawn textured yarn), with more than 400 specifications and varieties, mainly used in downstream clothing, home textiles and industries Used textiles and other fields. After nearly 20 years of meticulous work, Xinfengming has now become a leader in the polyester filament industry and ranks among the top three in the domestic civilian polyester filament industry.
Up to now, it has obtained 24 invention patents, 214 utility model patents, 10 software copyrights, 2 appearance designs, 6 presided over 6 standards, participated in the formulation of 29 standards, and published 38 academic papers.
The 2020 annual performance reduction announcement shows that the net profit attributable to shareholders of listed companies is expected to be 580 million to 650 million yuan in 2020, which will be 705 million to 7.75 less than the same period last year (statutory disclosure data). 100 million yuan, a year-on-year decrease of 52.02% to 57.19%.
It is estimated that the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses will be 380 million to 430 million yuan in 2020, which will be 818 million to 868 million yuan less than the same period last year (statutory disclosure data). A year-on-year decrease of 65.55% to 69.56%.
In this regard, Xin Fengming said that the spread of the global new crown pneumonia epidemic in 2020 will have a huge impact on the macro economy. Especially in the first three quarters, the downstream demand of the chemical fiber industry has dropped significantly, and the impact of the sharp fluctuations in oil prices has been superimposed on the industry. The price gap between products and raw materials narrowed, and profit margins were compressed. Since the fourth quarter of 2020, with the recovery of downstream demand and the stabilization of oil prices, the company's product profitability has gradually recovered. Coupled with the new production capacity in this period, the company's net profit attributable to shareholders of listed companies in the fourth quarter is expected to increase by 28.55% year-on-year to 56.65%.
