Shenma intends to set up a joint venture company to plan and build a 120,000-ton/year BDO project

Shenma Co.
, Ltd.
announced on the evening of June 22 that the company intends to jointly invest with Etuoke Banner Jianyuan Coal Coking Co.
, Ltd.
and Etuoke Banner Weiju Technology Co.
, Ltd.
to establish Ordos Shenma Jianyuan New Materials Co.
, Ltd.
with registered capital 480 million yuan, of which Shenma Co.
, Ltd.
contributed 187.
2 million yuan in cash, accounting for 39% of the registered capital
.

The planned construction scale of the joint venture is 120,000 tons/year BDO project.
The main devices of the project are: 120,000 tons/year BDO unit; 250,000 tons/year formaldehyde synthesis (37%wt) unit supporting BDO unit, 39,600 tons/year Acetylene generation device, as well as supporting solid storage and transportation, primary water station, circulating water station, reuse water station, sewage treatment station and other public works and auxiliary production facilities
.
The project construction period is 2 years
.

According to the feasibility study of the project, the total investment of the project scale (the total investment of the project submitted for approval) is 1.
55586 billion yuan, of which the construction investment is 1.
46925 billion yuan
.
After the implementation of the project, the average annual sales income during the production period is 1.
776 billion yuan (tax included), the pre-tax financial internal rate of return is 25.
7%, the post-tax financial internal rate of return is 20.
7%, and the pre-tax investment payback period is 6.
1 years.
The after-tax payback period is 6.
9 years
.