Data photo: On May 13, the listing ceremony of Lutai A convertible bonds was held.
News from the First Textile Network on May 22 (reported by reporter martin): Lutai Textile Co., Ltd. (hereinafter referred to as “Lutai A”) today (May 22) The announcement stated that the 15th meeting of the company’s board of directors reviewed and approved the “Proposal on the Company’s Use of Part of Idle Raised Funds for Cash Management” and agreed that the company would use no more than 800 million yuan on the premise of ensuring the construction needs of investment projects with raised funds. The idle raised funds can be used to purchase low-risk capital-guaranteed financial products with high security and good liquidity, and the period shall not exceed 12 months from the date of review and approval at the 15th meeting of the ninth board of directors.
The announcement shows that with the approval of the China Securities Regulatory Commission, Lutai A publicly issued convertible corporate bonds with a total face value of 1.4 billion yuan to the public on April 9. This issuance of convertible bonds The balance of the raised funds after deducting the sponsor and underwriting fees was 1.388 billion yuan, which was transferred by the sponsor to the company’s designated special storage account for raised funds on April 15. After deducting a total of 2.54 million yuan in other expenses such as lawyers, accountants, credit rating, information disclosure and issuance fees from the above-mentioned actual raised funds, the net amount of raised funds totaled 1.385 billion yuan.
The funds raised by Lutai A, after deducting issuance expenses, plan to be used for the following purposes:
Among them, the functional fabric smart ecological park project (Phase I) is located on the north side of Lutai Industrial Park, Zichuan District, Zibo City, Shandong Province. After the project is completed, it will have an annual production capacity of 35 million meters of high-end functional fabrics, including 11 million meters per year of yarn-dyed functional woven fabrics, 12 million meters per year of yarn-dyed functional knitted fabrics, and 12 million meters per year of piece-dyed functional fabrics. 9 million meters/year, 3 million meters/year of functional composite fabrics.
The total investment of the project is 1.145 billion yuan, of which 930 million yuan is the construction investment. It is planned to use the raised funds to invest 850 million yuan this time, and the company’s holding subsidiary Shandong Lulian New Materials Co., Ltd., it is expected that the project will achieve an annual operating income of 888.8375 million yuan and an average annual net profit of 82.1505 million yuan after reaching full production.
The high-end printing and dyeing fabric production line project is located in the existing factory of Lufeng Weaving and Dyeing Co., Ltd., Jiaowang Road, Huangjiapu Town, Zichuan District, Zibo City. After the project is completed, it will have an annual production capacity of 25 million meters of high-end printed and dyed fabrics, including 10 million meters of white fabrics per year, 5 million meters of dyed fabrics per year, and 10 million meters of printed fabrics.
The project has a total investment of 378 million yuan, including 263 million yuan for construction. It is planned to use raised funds to invest 250 million yuan this time Yuan will be implemented by the company’s holding subsidiary Lufeng Weaving and Dyeing Co., Ltd. It is expected that the project will achieve annual operating income of 499 million yuan and an average annual net profit of 24.8774 million yuan after reaching production.
Lu Tai A explained that since the company needs to raise funds to invest in the construction of projects, it takes a certain period of time to raise funds during the project investment process. It will be gradually invested, and some will be idle in the short term. In order to make rational use of funds, improve the efficiency of fund use, increase the company’s income and ensure the maximization of shareholders’ interests, it is necessary to ensure that the construction of projects with raised funds and the company’s normal operations are not affected and risks can be effectively controlled. , using part of the idle raised funds for cash management.
Public information shows that Lutai A’s main products include yarn-dyed fabrics for high-end shirts, printing and dyeing fabrics, ready-made garments, etc., by product , in 2019, the company’s fabric product revenue fell by 0.33% year-on-year, and the gross profit margin decreased by 0.17pct. The revenue from shirt products increased by 0.61%, and the gross profit margin increased by 0.65pct.
In terms of regions, Luthai A’s export revenue increased by 0.34% year-on-year, and domestic sales fell by 3.65%. During the reporting period, the company Sales to Southeast Asia (and then indirectly sold to developed countries), Europe, the United States, Japan and South Korea accounted for 30.55%, 16.58%, and 6.43% of total revenue respectively.
In 2019, Lutai A’s overall gross profit margin increased by 0.23pct year-on-year, and the expense rate during the period increased by 2.06pct, of which the sales expense rate, management R&D expense rate and financial expense rate increased by 0.17% respectively. pct, 1.18pct and 0.70pct. At the end of the year, the company’s accounts receivable increased by 37.56% from the beginning of the year, inventory increased by 15.67% from the beginning of the year, and net cash flow from operating activities decreased by 24.07% year-on-year.
Lu Thai A currently has a textile fabric production capacity of 2.93 100 million meters per year, with a textile and apparel production capacity of 20.3 million pieces per year. The yarn-dyed fabric production capacity has accounted for about 18% of the global yarn-dyed fabric market for mid- to high-end shirts. It is the world’s largest shirt fabric manufacturer, with a capacity utilization rate of 90% year-round. More than %, the company’s products are mainly exported, domestic sales account for less than 40%, and export products are mainly sold to Europe and the United States (17.8%) andSoutheast Asia (29.22%), customers include Uniqlo, OLYMP Clothing, PVH Company (subsidiary clothing brands include Calvin Klein, Tommy Hilfiger, etc.), etc.
Oriental Securities analyst Shi Hongmei believes that in the short term, due to the impact of the spread of epidemics at home and abroad, Lutai A’s production and operation this year will face It is a big challenge. It is expected that the order pressure in the second quarter will be greater than that in the first quarter. The subsequent recovery of external demand still needs to wait for the overseas epidemic to be significantly alleviated and controlled. However, the company’s previous announcement of the transfer of part of the equity of Rongchang Biotechnology is expected to have a positive contribution to the company’s profit this year; in the medium and long term, Lutai A has always been one of the internationally competitive manufacturing companies in the textile and apparel industry. In April this year, the company completed a RMB 1.4 billion The issuance of convertible bonds is used to invest in the functional fabric smart ecological park project (Phase I), high-end printing and dyeing fabric production line projects, etc., to provide financial guarantee for production capacity investment and operation. The expansion of Vietnamese and domestic production capacity in recent years will continue to support Lu Thai A’s extended growth points in operating revenue and profits have consolidated the company’s leading position in the global mid-to-high-end yarn-dyed fabric industry.
The financial report shows that in 2019, Lutai A achieved total operating income of 6.8 billion, a year-on-year decrease of 1.1%; net profit attributable to shareholders of listed companies was 950 million, a year-on-year increase of 17.4%; Earnings per share were 1.11 yuan; in the first quarter of 2020, the company achieved total operating income of 1.25 billion, a year-on-year decrease of 18.9%; net profit attributable to shareholders of listed companies was 104 million yuan, a year-on-year decrease of 46.96%. Basic earnings per share were 0.12 yuan. (First Textile Network Martin)</p