File picture: A corner of the 100,000-spindle large workshop B-A in Blum (Vietnam) Area B
The expanding epidemic in Vietnam has failed to stop Chinese companies from investing in Vietnam.
On the evening of July 5, one of the world’s largest colored yarn manufacturing companies, Bailund Oriental (601339), released a private placement plan. The company plans to invest in no more than 35 specific investors. The investors raised no more than 1 billion yuan for Blum (Vietnam)’s expansion of 390,000 spindles of yarn project, with a total investment of 250 million US dollars.
Blum Oriental stated that Vietnam is the only country connected to my country by sea and land in the construction of the “Belt and Road” and has significant geographical advantages. As one of the important members of ASEAN, it enjoys various trade policy preferences within and outside ASEAN. It has signed free trade agreements with Japan, South Korea, the European Union and other countries and regions, and has introduced a number of preferential policies to attract foreign investment. It has good export-oriented economic characteristics. It has attracted brand companies to transfer orders to Vietnam. Coupled with its relatively low labor costs, the cost advantage is prominent for labor-intensive companies. In recent years, it has become one of the important overseas investment destinations for domestic companies. This Vietnam project can further expand the company’s overseas production capacity based on Vietnam’s many advantages, and has good prospects.
Blum Oriental said that with the continuous improvement of industry technical level and environmental protection standards, colored yarn has been widely used in the field of clothing, and the demand for colored yarn at home and abroad continues increase. In recent years, the company’s output, sales volume, and order volume have increased rapidly year by year, and it has developed into one of the world’s leading manufacturers and suppliers of colored yarn. The company has achieved a certain scale of production capacity layout in Vietnam. Over the years, it has accumulated rich experience and resources in the industry by virtue of its constantly innovative technical strength, rapid delivery capabilities and other advantages. Cooperation with companies in Vietnam has continued to strengthen. The company has Vietnam’s core competitiveness is gradually becoming more prominent. This Vietnam project will help the company further release production capacity, improve its order-taking capabilities, and better meet market demand for the company’s yarn products.
“Made in China 2025″ and the manufacturing power strategy have put forward new requirements for promoting my country’s textile manufacturing to move towards mid-to-high-end and accelerating the high-quality development of the textile industry. In the future, as the textile industry With the rapid development of high quality, the market demand for color spinning will have huge room for improvement.” Blum Oriental believes.
Blum Oriental also recognizes the risk of the “new coronavirus” epidemic. The company revealed that after the third quarter of 2020, benefiting from the complete domestic supply chain and good domestic control of the epidemic, the domestic textile industry has generally seen a trend of order reshoring. The “COVID-19” epidemic has exacerbated the uncertainty of the company’s daily operations. At present, the overseas epidemic has not yet been effectively controlled, and global vaccination will take time. Global shipping capacity has not yet recovered, which has a greater negative impact on the company’s overseas procurement and overseas sales businesses. Overseas sales accounted for 60.72% of the company’s main business income in 2020, and 60% of the company’s production capacity is in Vietnam. At present, the cross-border movement of personnel has not been fully liberalized, which still has an adverse impact on the company’s export business, daily management of overseas subsidiaries, and personnel mobility.
The announcement shows that after the completion of this issuance, the shareholder structure of Blum Oriental will change, and no more than 450 million ordinary shares (including the principal number) will be added. Before this issuance, the company’s total share capital was 1.5 billion shares. Brothers Yang Weixin and Yang Weiguo were the actual controllers of the company, and Zheng Yafei, a person acting in concert with Yang Weiguo, directly and indirectly held 74.41% of the company’s equity. If the actual issuance quantity of this private placement is the upper limit of this issuance and the actual controller and its persons acting in concert do not participate in the subscription, then after the issuance is completed, the actual controllers Yang Weixin, Yang Weiguo and Yang Weiguo’s person acting in concert Zheng Yafei will collectively hold the company’s equity The ratio will drop from 74.41% to 57.24%, which will not affect the actual controller status of Yang Weixin and Yang Weiguo, and will not lead to changes in the company’s control.
After-hours data shows that on July 5, Blum Oriental was listed on the list due to a cumulative deviation of 20% from the closing price increase in three consecutive trading days. Blum Oriental closed at 6.48 yuan that day, with an increase or decrease of 5.37%, a turnover rate of 2.71%, and a turnover of 260 million yuan. During the abnormal period from July 1 to July 5, the increase during the period was 20.22%, the cumulative deviation value was 20.59%, and the transaction volume in the range was 625 million yuan.
On July 5, one institution bought 49.6176 million yuan in seats, ranking first in buying seats, and also bought the second, third and fourth seats of UBS Securities Shanghai Garden Shiqiao Road Sales Department, China International Capital Corporation Shanghai Branch, and China International Capital Corporation Shanghai Huangpu District Hubin Road Sales Department respectively conducted T+0 operations on that day, and were among the top five sellers at the same time. Among them, UBS Securities Shanghai Garden Shiqiao Road Sales Department bought 16.6566 million yuan and sold 12.0488 million yuan that day. China International Capital Corporation Shanghai Huangpu District Hubin Road Sales Department bought 13.8609 million yuan that day and sold 13.4875 million yuan at the same time. </p