In Order To Improve The Annual Output Of 40 Thousand Tons Of Lyocell Short Fiber Project, Nanjing Chemical Fiber 130 Million Transferred The Sewage Treatment Company Set Up Just Last Year.

Nanjing chemical fiber Limited by Share Ltd (hereinafter referred to as "Nanjing chemical fiber") announced in May 11th that the wholly owned subsidiary of Nanjing Jinling biological fiber Limited (hereinafter referred to as "golden antelope bio based fiber") intends to publicly transfer the 100% stake held by Nanjing's Farber ear sewage treatment Co., Ltd. (hereinafter referred to as "Farber ear"), with a valuation value of 130 million. The final assessment value is based on the record of the state assets. The Nanjing chemical fiber will be listed at the base price of not less than the value of the record made by the state assets. The final transaction price will be determined according to the results of the public listing. After the completion of the transaction, Jinling bio based fiber will no longer hold the shares of Farber.

Nanjing chemical fiber said that the transfer of Farber's equity stake in the implementation of the company's transformation and upgrading and development strategy, further readjust the industrial structure, optimize the allocation of resources, and gradually form a new generation of green fiber fiber production base led development goals, revitalize the stock assets.

Reporters read the announcement that Farber's ear registration address is located at 2 Yu Zhuang Road, Liuhe District, Nanjing City, Jiangsu Province, with a registered capital of 120 million yuan. It was founded in August 20, 2019, and its business scope is related to water pollution control services. The transfer of shares is not related to personnel arrangements. At present, the assets of Farber's sewage and sewage treatment have been leased to Lan Jing (Nanjing) Fiber Co., Ltd., the rental period is from October 25, 2018 to October 24, 2023, and the monthly rent is 850 thousand yuan (excluding tax).

In October 9, 2019, Nanjing chemical fiber announced that the company decided to set up a wholly-owned sun Farber Nanjing sewage treatment Co., Ltd., with a registered capital of 120 million yuan. At that time, the production of viscose filament yarn of Farber's ear was completely shut down at the end of 2018. When Farber ears were in the process, construction of the new annual investment project "40000 tons Lyocell short fiber project" was being carried out, due to the new recruitment. There is a big difference between the sewage treatment process of the project and the original viscose filament project. The Farber ear sewage treatment plant has not adapted to the technical requirements of the new investment project. At present, it mainly provides sewage treatment services for the surrounding enterprises of Nanjing new material industrial park.

The first textile net reporter learned from the financial report that Farber's viscose filament production line was completely shut down at the end of 10 in 2018, and most of the assets had no use value, and the disposal of idle assets was disposed of. As of August 31, 2019, the original value of idle assets mentioned above was about 787 million yuan, accounting for 466 million yuan in depreciation, 254 million yuan in value for impairment, and 67 million yuan in net book value. The estimated value of idle assets is estimated to be 60 million yuan, and the final assessment value will be recorded by the relevant departments of state owned assets.

It is reported that Nanjing chemical fiber is doing a good job in the Farber ear diversion resettlement of surplus employees to terminate the work, since 2019, through continuous communication and agreement to terminate the 50 people, as of the end of November 2019, Farber's employees actually 146 workers. The company carefully combed the retained personnel, fully mobilized everyone's work enthusiasm, and arranged them reasonably to relevant jobs according to their working specialty.

Public information shows that Nanjing chemical fiber was established in 1992, and was listed in 1996. It is a listed company of Nanjing's "State Assets Department". It was formerly the Nanjing chemical fiber factory which was put into operation in 1964. The SASAC of Nanjing has a 41.45% stake in the company through the Nanjing new industrial investment group and its corresponding subsidiary company. The company mainly from viscose fiber, tap water production and operation, as of the end of 2019, the company has viscose staple fiber 80 thousand tons / year production capacity and 150 thousand tons / day view water supply capacity, the company produces landscape water for Xuanwu Lake, Jinchuan river system, North ten li long ditch and other inland drainage drainage, the company from viscose fiber production and operation for 50 years, experienced, comprehensive Strength ranks among the forefront of the industry.

At present, Nanjing chemical fiber is pushing ahead with the construction of 40 thousand tons Lyocell short fiber project, promoting the upgrading of the main industry of viscose fiber, and actively exploring mergers and acquisitions business, changing the single status of the company's industrial structure, and realizing the "two wheel drive" development as soon as possible. The total investment of the project is 870 million yuan, and the construction site is located in the factory area of the company. The project started in 2018 and was put on record by the Liuhe District Bureau of industry and Commerce in September 18, 2018. In order to speed up the implementation of the project, the company commissioned the bidding agency, Jiangsu provincial Equipment Co., Ltd. issued an international bidding notice for the project "40000 tons annual Lyocell short fiber project" in the China International Tendering network. The Beijing Sanlian new synthetic fiber technology service Limited by Share Ltd was recognized as the winning bidder.

The formal procedures for the project have been completed: the EIA report has been approved by the Liuhe District, and the "assessment report" and "safety evaluation report" have been completed, and the planning permission procedures have been completed. The company actively cooperate with Beijing Sanlian Hong Pu company to carry out project related design. The site has been fully constructed and delivered. It started construction in December 2019 and the construction period is 1 years. It is expected to be put into trial operation at the end of 2020.

According to the financial report, in the first quarter of 2020, Nanjing chemical fiber realized total business income of 63 million 597 thousand, down 70.5% compared with the same period last year, the decline was larger than that of the same period last year. The net profit of -3617.6 was 1 million 274 thousand yuan, which failed to maintain profitability. During the reporting period, the gross profit margin of the company was -3.5%, a decrease of 14.5 percentage points compared with that of the previous year, with a net interest rate of -56.9%, down 57.6 percentage points from the same period.

During the reporting period, the operating cost of Nanjing chemical fiber was 65 million 822 thousand, down 65.7% from the same period last year, lower than the 70.5% decline in operating income, and the gross profit margin dropped by 14.5%. The period cost rate is 57.8%, up 43.1% from the previous year, which is a drag on the company's performance. Operating cash flow increased from -6262.6 million to 11 million 937 thousand, up 119.1% over the same period last year.