For Financing 3 Hundred Million, Fujian'S Largest Knitting Enterprises Mortgage 110 Thousand Level Land Use Rights And Construction Projects.

Fujian Feng Zhu textile Polytron Technologies Inc (hereinafter referred to as "Feng Zhu textile") issued a notice in June 29th, saying that in order to reduce the financing cost, the company applied for financing business through the Quanzhou branch of the Industrial Bank of Limited by Share Ltd, the Fujian technological transformation investment fund (limited partnership) (hereinafter referred to as the "provincial technical transformation fund"), and the amount of financing is not more than that of the people. The currency is 300 million yuan, with a term of 48 months, and the financing interest rate is not more than 3%. It is mainly used for the construction of the Anton relocation project and the related loans of the subsidiaries that are still in the early stage of the project.

The total amount of the above land use right and construction contract is about 400 million RMB (the final settlement of the project is final). As of May 31, 2020, the book value of the new plant in construction in Anton was 2.9085864372 billion yuan.

Reporters learned that, as the first three-star project of green industry in China's textile industry, the new plant of Feng Zhu textile has invested 850 million yuan, covering an area of about 165 mu, with a total construction area of 160 thousand square meters, mainly producing high-end knitted dyed fabrics, supporting printing and dyed yarn and other auxiliary products, with an annual production capacity of 50 thousand tons. The project is heavy in Fujian, Quanzhou and Jinjiang. The project will promote the promotion of dyeing and finishing projects in Jinjiang and realize intensive and environmental protection of dyeing and finishing enterprises. After the project is completed, the annual sales revenue is expected to reach nearly 1 billion yuan, with an annual gross profit of 180 million yuan.

Reporters learned from the financial reports that Feng Zhu textile was incorporated into the Meiling Group in June 2010. In January 2, 2018, it completed 165.33 mu of related land for production and operation in Jinjiang Economic Development Zone, Fujian. With the support of the Jinjiang municipal government, all preparatory work has been completed.

As of the first quarter of 2020, the main building structure of the project of Feng Zhu textile and Anton new factory has been capped. Now in the interior decoration, public works construction and equipment installation, the related construction work is being actively coordinated and promoted. Due to the fact that the project construction team is more for the personnel outside the province, affected by the sudden epidemic, according to the actual progress of the project, the company is expected to be completed and put into production in September 30, 2020.

According to public information, Feng Zhu textile is a listed company mainly engaged in cotton spinning, dyeing and finishing, knitted fabric, cheese yarn production and environmental protection facilities operation. In April 2004, it was listed on the domestic A shares. The company has weaving factories, dyeing mills, dyeing and finishing plants, sewage treatment plants and cotton spinning subsidiaries, and water, electricity, steam, sewage treatment and other infrastructure facilities are complete, production equipment. It has reached the advanced level of the world's peers, and has formed a relatively perfect technological innovation system and industrial chain. It is a hundred key industrial enterprises, large scale industrial enterprises in Fujian, the largest knitting dyeing and finishing manufacturer in Fujian province and the export base of knitwear.

Up to now, the production scale of textile products such as spinning, weaving, dyeing, dyeing and finishing, printing and so on is 10000 tons, 18000 tons, 1800 tons, 36000 tons and 4000 tons respectively.

According to the results of the report, in 2019, the merger of Phoenix Bamboo textile business realized 1 billion 23 million 581 thousand and 600 yuan, an increase of 1.87% compared with the same period last year, and a slight increase in revenue. The company realized operating profit of RMB 39 million 682 thousand and 100 yuan, which was 9.75% lower than that of the same period last year, mainly due to the increase in the cost of the export and the financial expenses of the parent company. Two, the operating profit of Jiangxi subsidiary was less than that of the same period. The net profit attributable to the parent company was 25 million 953 thousand and 600 yuan, a decrease of 15.19% compared with the same period last year, mainly due to a decrease in operating profit.

As of December 31, 2019, the total assets of Phoenix Bamboo textile were 1 billion 688 million 374 thousand and 400 yuan, an increase of 22.98% from the beginning of the year. The increase in total assets was mainly based on the construction of Anton new plant. The company's net assets amounted to 742 million 957 thousand and 300 yuan, an increase of 3.32% over the beginning of the year. The increase in net assets is mainly due to the increase in net profit and the impact of dividends.

Products:

1) the revenue of spinning products decreased by 11.14% compared with that of last year, mainly due to the decrease in production and sales of Jiangxi subsidiaries compared with the same period last year. The operating cost increased by 2.73 percentage points, and the gross profit margin decreased by 2.73 percentage points.

2) yarn dyed products account for a small proportion in the company's sales, small orders, large fluctuations in product mix, although sales revenue has risen, but at the same time, operating costs have also risen, and gross margins remain the same level.

3) the revenue of dyeing and finishing products was 3.4% lower than that of last year, mainly due to the decrease in domestic sales of finished products. Gross margin was basically unchanged from the same period.

4) the revenue of dyeing and finishing is 5.2% lower than that of last year, mainly due to the decrease in domestic sales of dyeing and finishing. Gross profit margin decreased by 3.71 percentage points over the same period, mainly due to the increase in consumption of steam and dyes consumed in dyeing and finishing products, resulting in an increase in the cost of ton cloth.

In addition, the financial report also showed that in the first quarter of 2020, Feng Bamboo textile realized revenue of 193 million yuan, down 24.70% compared with the same period last year; net profit attributable to shareholders of listed companies was 1 million 560 thousand yuan, down 77.40% compared with the same period last year; net profit attributable to shareholders of listed companies after deducting non recurring gains and losses was 1 million 398 thousand and 700 yuan, a decrease of 76.69% compared with the same period last year; and the basic earnings per share were 0.0057 yuan.