"Blood Supplement" + Capacity Expansion Xinxiang Chemical Fiber plans to raise no more than 1.38 billion yuan

On May 20, Xinxiang Chemical Fiber announced that the company plans to non-publicly issue no more than 300 million shares and raise a total of no more than 1.
38 billion yuan, mainly for the third phase of the project with an annual output of 100,000 tons of high-quality ultra-fine denier spandex fiber.
, An annual output of 10,000 tons of biomass cellulose fiber project and supplementary working capital
.

Xinxiang Chemical Fiber said: "The implementation of this fundraising project will optimize the company's existing product structure and production capacity layout, increase the company's market share in the ultra-fine denier spandex industry, consolidate the company's leading position in the biomass cellulose filament industry, and improve the the overall competitiveness of the company
.
”

Song Qinghui, founder of Qinghui Think Tank, said: "Spandex is a highly cyclical product.
At present, the price of spandex continues to fall.
Under this background, Xinxiang Chemical Fiber raised funds to build a spandex project, and the project has a greater risk than expected
.
"

Xinxiang Chemical Fiber also hinted at the risk of cyclical fluctuations in the industry in this fixed increase plan
.
According to the information data, the 20D spandex fiber price index has risen sharply from 36,000 yuan/ton in July 2020 to 104,000 yuan/ton in August 2021, and will gradually fall back to about 73,000 yuan/ton in March 2022
.
The company said that the company's future operating performance will also face the risk of cyclical fluctuations in product market prices
.

The reporter noticed that the business of Xinxiang Chemical Fiber is mainly spandex fiber and biomass cellulose filament.
It is now the leading enterprise in these two industries.
The company plans to increase its own competitive advantage by expanding its production capacity
.

According to the company's non-public issuance plan, "the third phase of the project with an annual output of 100,000 tons of high-quality ultra-fine denier spandex fiber" plans to invest 700 million yuan in raised funds, and the "annual output of 10,000 tons of biomass cellulose fiber project" plans to invest in raised funds 480 million yuan
.

Xinxiang Chemical Fiber said that the products of the third phase of the project with an annual output of 100,000 tons of high-quality ultra-fine denier spandex fibers will be 10D, 15D, 18D and 20D ultra-fine denier spandex fibers.
A large-scale differential ultra-fine denier spandex fiber production base, while expanding the proportion of differentiated spandex fiber products, to improve the company's competitive advantage in the differentiated spandex market segment
.

Another main product of Xinxiang Chemical Fiber is biomass cellulose filament, also known as "viscose filament".
Xinxiang Chemical Fiber said that through the construction of "an annual output of 10,000 tons of biomass cellulose fiber project", it has built a considerable scale in the northwest region of Xinjiang.
The regenerated cellulose fiber production base of the company makes full use of the local industrial advantages in raw material supply, energy and supporting facilities, transportation and logistics, customer exploration, policy implementation, etc.
Market position in the field of biomass cellulose filaments
.

It is worth noting that Xinxiang Chemical Fiber's net profit in 2021 is 1.
365 billion yuan, a year-on-year increase of 1533.
21%.
With the substantial growth in performance, is the company still short of money? One or two can be seen from its supplementary liquidity through fixed increase
.

According to the non-public issuance plan, in addition to expanding production, Xinxiang Chemical Fiber also plans to use 200 million yuan of raised funds to supplement working capital
.
Xinxiang Chemical Fiber said that part of the funds raised from this issuance will be used to supplement working capital to ensure the company's daily operation needs, improve the company's capital structure, and lay a good foundation for the company's sustainable and stable development
.

Not only that, Xinxiang Chemical Fiber will raise a net amount of 972.
0676 million yuan through non-public offerings in 2021, of which 91 million yuan will be used to supplement working capital.
In addition, the company will also raise funds for the project "annual production of 100,000 tons of high-quality ultra-fine denier spandex fiber.
80.
1432 million yuan of the surplus raised funds of the first phase of the project" will permanently supplement the working capital
.

In fact, as early as 2020, Xinxiang Chemical Fiber issued a fixed increase plan to raise 555 million yuan, of which 400 million yuan will be used to repay bank loans, and the rest will be used to supplement working capital
.
Due to multiple factors, the company terminated this fixed increase
.