Jiangsu Cathay International Group Co., Ltd. (hereinafter referred to as “Jiangsu Cathay”) stated in a public investor question on June 22 that the company’s Vietnam textile dyeing and finishing construction project and data center construction project are actively advancing, and the Zhangjiagang yarn research and development and intelligent manufacturing project The Myanmar textile industry base construction project is currently in the early stages of preparation.
In order to expand overseas markets, improve research and development capabilities, and accelerate the company’s informatization process. To further enhance its hard power and risk resistance, Jiangsu Cathay Pacific announced earlier that it would publicly issue 4.557 billion yuan of convertible corporate bonds. After deducting issuance expenses, all the net proceeds raised will be used for the following projects:
Jiangsu Cathay said that one of the company’s current main businesses is supply chain services, which takes the supply chain as the core carrier, bases itself on domestic and foreign markets, and continuously improves and improves services. The company’s organizational management covers the entire industrial chain such as design, proofing, production, storage and transportation, and pursues the overall competitiveness and profitability of the supply chain. At present, the company has completed the construction of the first phase of the garment industry base project in Myanmar, Cambodia and other places, and the second phase of the garment industry base is under construction. As business volume continues to increase, the company’s demand for clothing raw materials is increasing. Since the company currently purchases all the raw materials required for the production and processing of clothing overseas, the supply of raw materials cannot be fully guaranteed, and it is not conducive to reducing raw material procurement costs. Therefore, the company closely follows the previous garment industry base project and plans to use the raised funds to build this Myanmar textile industry base project and Vietnam textile dyeing and finishing construction project, extend to the upstream of the garment industry chain, improve the company’s industrial chain layout, and reduce the cost of raw materials through scale advantages costs, participate in the international division of labor, and balance trade risks. In summary, the construction of this project is conducive to improving the company’s supporting industry chain, cultivating new growth points for the company’s apparel business, and achieving sustainable and rapid growth in the apparel business.
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1. Cathay Myanmar Textile Industry Base Project
The Cathay Myanmar Textile Industry Base project has a construction period of 3 years and a total investment of 1.537 billion yuan. The project is located in the fifth area of Laydaya Industrial Zone, Yangon Province, Myanmar. It is a provincial industrial park in Myanmar. The project site is located in the northwest of Yangon, with flat terrain, about 26 kilometers from Yangon Port and about 18 kilometers from Yangon International Airport.
This project plans to build a textile production and processing base, warehousing buildings, logistics center cargo shipping station, comprehensive office building, R&D center, sewage treatment plant, etc. on the new land. The total land area of the project is 406,667.00m2 (equivalent to approximately 610 acres). The total construction area of the new building is 418000.00m2.
The project plans to extend upstream based on the company’s existing industrial chain and market demand, purchase advanced equipment, strengthen quality control, and improve product quality and production efficiency. After the project is completed, it will be possible to add 136.875 million meters of woven fabrics per year, 45.625 million meters of knitted fabrics per year, 6387.50 tons of worsted yarn per year, 6387.50 tons of semi-worsted yarn per year, and 6387.50 tons of woolen yarn per year. annual production capacity.
The project plans to use advanced production technology and complete technological processes for project construction. It is planned to add 2,401 units (sets) of equipment, including 253 units (sets) of spinning equipment, 1,817 units (sets) of weaving equipment, and 291 units (sets) of dyeing equipment ( sets), 25 sets (sets) of digital printing equipment, 13 sets (sets) of sewage treatment equipment, 1 set (set) of logistics center equipment and information system, and 1 set (set) of supporting equipment of the R&D center.
2. Jiangsu Cathay Intelligent Textile Technology Co., Ltd.’s annual production of 3,000 tons of woolen yarn and 15,000 tons of worsted yarn project
The total project investment is 1.484 billion yuan, of which fixed asset investment (including land transfer fees) is 1.475 billion yuan and non-capital investment is 9.8099 million yuan.
The project construction site is located at the junction of Zhouxiang Road and Zhenbei Road, Tangqiao Town, Zhangjiagang City, Suzhou City, Jiangsu Province. It covers a total area of 66667m2 (equivalent to approximately 100 acres) and the total construction area of the new building is 107200m2.
Zhangjiagang City is located in the southeast of Jiangsu Province and is administered by Suzhou City. It is 98 kilometers away from Shanghai in the east, Taihu Lake in the south, and the Yangtze River in the north. It has jurisdiction over 8 towns and 7 functional areas. In 2018, Zhangjiagang City was shortlisted for the first batch of national innovative counties (cities) and ranked fourth among the top 100 counties (cities) for national scientific and technological innovation in 2018. The project site selection diagram is shown below:
The project plans to build a new production workshop and purchase advanced production equipment to produce woolen yarn products and worsted yarn products. After the project is completed, it can achieve an annual production capacity of 3,000 tons of woolen yarn and 15,000 tons of worsted yarn.
3. Jiangsu Cathay Overseas Technical Services Co., Ltd. newly built a yarn dyeing and finishing project of Vietnam Wantai International Co., Ltd. in Vietnam
The project construction period is 2 years, and the construction site is located in Chenggong Industrial Zone, Zhan Peng County, Tay Ninh Province, Vietnam. Tay Ninh Province (Vietnamese: T nhT yNinh) is located in the southeast, bordering Cambodia to the west and north, Long An Province to the south, and Binh Duong Province and Ho Chi Minh City to the east.
The total investment of the project is 611 million yuan, of which fixed asset investment (including land lease fees) is 601 million yuan and non-capital investment is 9.9937 million yuan. The project plans to build strip dyeing workshops, scattered dyeing workshops, worsted spinning workshops, woolen spinning workshops, comprehensive buildings, office buildings, sewage treatment plants, etc. on the new land. The total land area of the project is about 107 acres, and the total construction area is 69200.00m2.
The project plans to purchase advanced equipment, strengthen quality control, and improve product quality and production efficiency based on the company’s existing product structure and market demand. After the project is completed, it will be possible to increase the annual production capacity of 1,800.00 tons of woolen yarn and 3,000.00 tons of worsted yarn.
The project plans to use advanced production technology and complete process flow for project construction. It is planned to add 280 pieces of hardware equipment (sets), including 84 pieces (sets) of scattered dyeing equipment, 69 pieces (sets) of strip dyeing equipment, and worsted spinning equipment. 84 sets (sets) and 43 sets (sets) of woolen spinning equipment.
Public information shows that the predecessor of Jiangsu Cathay was Shazhou Foreign Trade Company founded in 1973. In 1997, Jiangsu Cathay International Group was established with Zhangjiagang Foreign Trade Company as the main body. In 2002, it became involved in the lithium battery electrolyte business of Huarong Chemical through a shareholding. Chemical Industry. The group’s holding company, China World Trade Co., Ltd., was successfully listed on the Shenzhen Stock Exchange in December 2006. At present, the company’s main businesses include supply chain services and chemical new energy business. The financial report shows that in 2021, the company achieved operating income of 39.339 billion yuan, a year-on-year increase of 30.69%; the net profit attributable to shareholders of listed companies was 1.236 billion yuan, a year-on-year increase 26.44%.
Judging from the industrial chain situation, Jiangsu Cathay’s downstream customers are internationally renowned brands including ZARA, UNIQLO, PRIMARK, etc., with good business credit. The company’s main export trade products are fast fashion products such as textiles, clothing, toys, etc.
Jiangsu Cathay’s supply chain services mainly focus on the import and export trade of consumer goods, facing both international and domestic markets, focusing on consumer goods, and are committed to providing one-stop value-added services throughout the supply chain. Data from the China Chamber of Commerce for Import and Export of Textiles shows that from January to December 2021, my country’s total exports of textile and clothing products were US$315.466 billion, an increase of 8.38%, while Jiangsu Cathay’s textile and clothing sector achieved operating income of 29.986 billion yuan, accounting for 76.32% of operating income. , a year-on-year increase of 20.40%.
Important markets for Jiangsu Cathay’s textile and apparel products include the United States, the European Union, Bangladesh, Vietnam, Japan, etc. Since 2021, clothing consumption demand in developed countries has increased significantly. Developed countries led by the United States have created an extremely loose monetary environment to stimulate economic recovery. Pushing up the willingness to consume clothing; on the other hand, the epidemic situation in countries in South Asia and Southeast Asia is severe. Textile and garment factories in Vietnam, India, Bangladesh and other countries temporarily suspended operations, and some product orders returned to my country. Affected by this, the company’s exports showed a good development trend in 2021, with cumulative imports and exports of US$5.095 billion, a year-on-year increase of 19.8%, of which exports were US$4.365 billion, a year-on-year increase of 19.2%.
Jiangsu Cathay stated that the company adheres to its main business of import and export, actively improves the level of supply bases, accelerates the implementation of overseas layout strategies, seizes development opportunities such as the “Belt and Road” and RCEP agreements, and operates in Myanmar, Vietnam, Cambodia, Egypt and other countries. The construction of supply bases at key nodes of the “Belt and Road Initiative” promotes the company’s transformation from “China supply chain integration” to “world supply chain integration”. In the next step, the company will continue to focus on Southeast Asia and further expand the construction of overseas production bases.
In the chemical new energy business, Jiangsu Cathay has also established close and continuous cooperative relationships with leading lithium-ion battery companies such as CATL, LG Chem, and New Energy Technology. By understanding the technical requirements and technical information of core customers, it can provide more effective electrolysis Liquid products, technical support and overall solutions, with first-mover advantages and customer stickiness. The company has built production plants in Zhangjiagang, Ningde, Poland, Quzhou and other places to provide supporting products to downstream customers and deepen cooperative relationships.
Jiangsu Cathay stated that the company will continue to focus on supply chain services and new chemical energy as its main businesses, base itself on both domestic and international markets, innovate its corporate development model, focus on strengthening, refining and optimizing its main business, and continue to expand its textile and apparel-based business. While exporting consumer goods, we must continue to expand the scale of imports of consumer goods and achieve good economic benefits to make up for the shortcomings in imports.
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