Revealing: Economic Benefit Analysis Of Xinye Textile Nonwoven Project

Since the outbreak of the new crown outbreak, the demand for disposable safety protection products has explode, and domestic leading textile enterprises have stepped into the whole industry chain of protective clothing and respirators.

In March 3rd, Xinye textile announced that it would invest 120 million yuan to invest in the construction of high-grade spinning and weaving composite nonwovens in the Xinye textile industrial cluster area. The total plant area needed is 7200 square meters, and the construction of the existing spare workshop will take 6 months. After the completion of the project, it is expected to produce 25 thousand tons of high grade textile composite nonwoven fabric annually, with an annual sales revenue of 425 million yuan and a total profit of 31 million 900 thousand yuan.

The Shenzhen Stock Exchange subsequently issued a letter of concern to Xinye textile in March 9th, calling for a detailed description of the planned products and practical uses of the high grade textile composite nonwoven production line, the construction cycle, the estimated time of production, and the relevant hand orders at the relevant production lines.

In March 11th, the Xinye textile Limited by Share Ltd said in reply to the letter from the Shenzhen stock exchange that the construction period of the high grade spinning composite nonwovens project is expected to be 6 months, and will be put into operation at the end of September 2020. According to the feasibility study report, 25 thousand tons of spun bonded nonwovens can be produced in the normal year of the project, including 15 thousand tons of SSMMS products or SMS products, and 10 thousand tons of SSS products.

The introduction of Xinye textile combines with the technological route and financing plan of the high grade textile composite nonwovens project. With reference to the experience of similar engineering construction, the construction period of the project is determined to be 6 months. In order to improve the speed of engineering construction, we should adopt close link, carry out and cross construction ways to ensure the smooth completion of the project.

The project needs to be designed, compiled, constructed, reconstructed, processed and shipped in installments, commissioning and trial production. The construction period is expected to be 6 months, and will be put into operation at the end of September 2020.

According to the feasibility study, in the normal year of the high grade spinning composite nonwovens project, 25000 tons of spun bonded nonwovens can be produced, of which 15000 tons of SSMMS products or SMS products and 10000 tons of SSS products.

There are 38 workers in the high grade textile composite nonwoven project, and the production workers use 3 shifts and 3 transfers, of which 3 are technical personnel and 3 are electromechanical maintenance personnel.

The main raw materials of high grade spinning composite nonwovens are PP chips, masterbatch and oil additives. The raw materials need extensive sources, which can meet production needs, and transport is fast and convenient.

In the initial stage of the project of high grade spinning composite nonwovens, after asking the relevant administrative departments, according to the regulations of the People's Republic of China on the management of industrial products license, the spun composite nonwovens were not included in the list of production licenses for important industrial products. Therefore, the production and sale of spun composite nonwoven fabrics do not need to obtain relevant qualifications.

The Xinye textile high grade spinning composite nonwovens project is a project to be built. It will take 6 months to complete the production line. Because the quantity, quality and price of finished products may change, the company does not accept the order of high grade spinning composite nonwovens at present.

According to the research and calculation of the high grade textile composite nonwovens project, after the completion of the project, it is expected to produce 25 thousand tons of high grade textile composite nonwovens annually, and the price per ton can be realized in the following table (according to the comprehensive price of the market in 2019). The annual sales income will be 425 million yuan, and the annual cost of raw materials, labor, depreciation and sales expenses will be 393 million 100 thousand yuan. The total annual profit of the project is expected to be 31 million 900 thousand yuan.

Xinye textile said that in the implementation process of the high grade spinning composite nonwovens project, it may be affected by uncertain factors such as macro-economic environment and industry development trend. The investment cost will be affected by many factors such as raw material, labor cost and other factors such as price fluctuation, construction progress and so on, which will affect the yield of the project.

Public information shows that Xinye textile is the leading enterprise in the cotton textile industry, and is also a major textile backbone enterprise in the country. One of the 520 major enterprises in the country and one of the 50 key supporting enterprises in Henan Province, the largest shareholder of the company is Xinye County Finance Bureau, with a holding ratio of 27.3%. It has 8 wholly-owned subsidiaries, 1 holding subsidiaries and 1 equity joint ventures.