TBEA German Cable Company plans to invest 820 million yuan in technological transformation, and it is expected to have an annual profit of 170 million yuan after reaching production

On December 22, TBEA Co.
, Ltd.
(stock code: 600089 securities abbreviation: TBEA) announced that it intends to invest about 820 million yuan to implement technical transformation projects
for TBEA (Deyang) Cable Co.
, Ltd.
(hereinafter referred to as "Deyang") holding subsidiary of the company.
The capital of the project will be increased by the company to Deutsche Cable Company with monetary funds of 369 million yuan, and the remaining funds required for project investment will be solved
by Deutsche Cable Company through bank loans and other means.

TBEA said that the construction of the German cable technical transformation project is conducive to expanding the company's cable production capacity and improving the company's market competitiveness in the southwest region; The project has good economic benefits, and after the project is completed and reaches production, it can increase the company's income and profit
.
The investment will not create new corporate related party transactions and there will be no intra-industry competition
.

According to the announcement, the technical transformation projects of German Cable Company include: the new mode of intelligent manufacturing production demonstration project in the cable industry, the technical transformation project of the digital workshop of new energy equipment cable, and the construction project
of the cable intelligent factory for new urbanization construction based on the industrial Internet platform.

The cable intelligent manufacturing project will build a new testing center and upgrade the original cable car room, wire workshop and logistics yard; Newly imported 35kV crosslinking production line, frame stranding machine, cable forming machine, imported copper wire drawing machine and other advanced energy-saving and automation equipment; The introduction of automatic distribution material system to realize automatic distribution of materials, reduce material transfer time, and improve production efficiency
.

After the implementation of the project, through the layout adjustment of advanced process equipment and the automatic transfer and feeding of workshop materials, the logistics will be smoother, the degree of automation is higher, and the production efficiency is higher, and the output value of steel core aluminum stranded wire products will be 103.
959 million yuan, and the output value of new power cables and other products will be 639.
335 million yuan
.

The equipment cable project will expand the special cable car room, build a new power center, transform the sewage system of the factory, and public auxiliary facilities; New energy equipment cable production lines were added, automatic distribution material systems were introduced, and network information platforms and information systems were newly built
.

After the implementation of the project, through the automatic distribution of materials and centralized production scheduling and monitoring, a digital workshop of new energy equipment and cables with a high level of automation will be built to make production efficiency and scheduling efficiency higher, and the output value of energy equipment cables will be increased by 678.
282 million yuan
.

The smart factory project will re-layout the cloth wire production and sorting workshop in accordance with the requirements of automation, informatization and digitalization, and introduce advanced imported double-head large drawing machine, imported multi-head wire drawing machine, extrusion circle two-in-one and other equipment to improve the production efficiency and quality of wire drawing and extrusion circle; Introduce intelligent logistics control system and intelligent warehousing to realize logistics turnover automation and digital control
.

After the completion of the implementation of the project, the output value of new distribution wires will be 130,500.
00 million yuan, the output value of irradiated cables will be 324.
000 million yuan, and the output value of fireproof cables will be 127.
033 million yuan, improving the ability to further respond to
the market.

As of June 30, 2021, De Cable Company had total assets of 177,470.
78 million yuan and net assets of 67,176.
85 million yuan, and achieved operating income of 118,973.
98 million yuan and net profit of 24.
9064 million yuan from January to June 2021 (the above data is unaudited).

The total investment amount of the German cable technical transformation project is 820.
2987 million yuan, of which: the construction investment is 591.
35 million yuan, the interest during the construction period is 34.
48 million yuan, and the bottom working capital is 194.
4687 million yuan
.

According to the feasibility study report, the construction period of the German cable technical transformation project is 2.
5 years, production is carried out while construction, the project reaches production in the 6th year, the operation period is 15 years (including the construction period), and the German cable technical transformation project reaches production with an average annual operating income of 317,760.
80 million yuan and an average annual profit of 170.
9631 million yuan
.