Fixed Increase Fundraising 200 Million! Hongda High Tech In Haining 60 Mu To Upgrade The Transformation Of High-Grade Warp Knitted Fabric Technology

Affinity Hongda high tech Cmi Holdings Ltd (hereinafter referred to as "Hongda hi tech") issued the "2020 year non public development bank A share plan" in the evening of March 4th. The total amount of raised funds raised by non-public offering is no more than about 202 million yuan (including the total number). Net proceeds from the issue will be invested in the technical transformation and upgrading project of high-grade warp knitted fabrics.


HTC said that the main business of warp knitted fabric business is a branch of the textile industry. At present, the company occupies a leading position in the automotive interior fabric market. Through the implementation of this project, the company will use this project to implement technology upgrading through intelligent manufacturing, enter more fields such as automotive airbag fabrics, and further participate in the competition of high added value traffic interior fabrics such as high-speed rail and aircraft. The implementation of this project will help further optimize the product mix, increase the proportion of high value-added products, and continuously enhance the company's profitability and overall competitiveness.


The above projects are planned and constructed for 2 years, and are implemented by Hongda high tech Cmi Holdings Ltd, a listed company. The project will be located in Xu Cun town, Haining City, Zhejiang Province, with an area of about 60 mu and a planned construction area of about 50 thousand square meters.


The project raised by this issue is a technological upgrading project for high-grade warp knitted fabrics. From the perspective of company management, the implementation of the project can optimize the product structure, enhance brand influence, consolidate the industry status, ensure sustained profitability and scale, and help the company catch the growth demand of high-end warp knitted fabric Market, such as high-end clothing materials and automotive interior fabrics. With high economic and social benefits, it can enhance the market position of the company and lay the foundation for the company to achieve long-term strategic development goals.


According to public information, Hongda high tech started its textile business. Its predecessor was Xu Cun warp knitting factory founded in 1985. In 2001, it became a Hongda warp knitting Limited by Share Ltd. In 2007, it was listed on the Shenzhen stock exchange and became the first listed company in warp knitting industry in China, 2010 After the acquisition of Shenzhen Wilder in 2003, the company expanded its business to the field of medical devices and changed its name to Hongda high tech Cmi Holdings Ltd.


As a leading enterprise in the warp knitting and subdivision industry, Hongda high tech was listed on the Shenzhen stock exchange in 2007. After the acquisition of Shenzhen Wilder in 2010, its business expanded to the field of medical devices, and the development pattern of the two main industries of warp knitting and medical devices was established.


HTC's main business is concentrated in two major areas: warp knitted fabrics and medical devices.


Warp knitted fabric: mainly engaged in research and development, production and sales of vehicles and other transport fabrics and other functional fabrics. The business adopts the production mode of "selling production", which is mainly composed of two levels for automobile production enterprises. Through the product identification, the manufacturer's on-site quality system examination and business negotiation, the customer will identify the company as a supplier and supply the demand to the company in the form of order. The company is now producing batch of automotive interior fabrics matching BMW, Mercedes Benz, Volkswagen, general motors, the Great Wall, Geely and other high-end brands.


Medical devices: Wilder, a wholly-owned Hongda hi tech company, mainly engaged in R & D, production and sales of ultrasonic diagnosis, treatment equipment and in vitro diagnostic reagents.


According to the financial report, in 2018, Hongda hi tech achieved a total revenue of 640 million, an increase of 0.6% over the previous year, and a net profit of 90 million 848 thousand attributable to the owners of the parent company, a decrease of 5.9% compared with the same period last year. The decline was larger than that of last year, and the earnings per share were 0.51 yuan. During the reporting period, the gross profit margin of the company was 29.2%, down 1.2 percentage points from the previous year, and the net interest rate was 14.6%, basically maintaining the level of the previous year.


In the first three quarters of 2019, Hongda hi tech achieved a total revenue of 400 million, down 2.7% from the same period last year. The decline narrowed compared with the same period last year, and realized net profit of 73 million 749 thousand, down 4.6% from the same period last year, and the earnings per share were 0.42 yuan. During the reporting period, the gross profit margin of the company was 30.6%, and the net interest rate was 18.3%.


In February 27th, HTC's performance bulletin also showed that in 2019, the company achieved operating income of 543 million yuan, down 14.9% from the same period last year, and the average operating revenue growth rate of the textile manufacturing industry was -1.10%; the net profit attributable to shareholders of listed companies was 87 million 675 thousand yuan, down 3.49% compared with the same period last year, and the average profit growth rate of the textile manufacturing industry was -3.56%.


HTC explained that the main reasons for the change in the company's performance during the reporting period were:


In 1 and 2019, under the leadership of management, the company overcame the impact of the overall decline of the domestic passenger car market and the Sino US trade disputes, and worked hard to maintain the overall business situation throughout the year. During the reporting period, the company achieved a total operating income of 543 million 322 thousand and 900 yuan, down 14.90% compared to the same period last year, and the net profit attributable to shareholders of listed companies was 87 million 675 thousand yuan, down 3.49% compared to the same period last year. The main reasons for the change of indicators are:


(1) the warp knitted fabric industry, on the one hand, focuses on the localization of high-end car brands and the opportunity for the incremental market of new energy vehicles. On the one hand, efforts should be made to develop high-end apparel and fabric market and reduce the low value-added textile processing business. The operating income of the parent company during the reporting period was 335 million 15 thousand and 500 yuan, down 11.80% from the same period last year, and net profit was 98 million 704 thousand and 700 yuan, down 3.21% from the same period last year.


(2) in the field of medical device industry, a wholly owned subsidiary, Shenzhen Wilder Medical Electronics Co., Ltd. (hereinafter referred to as "Wilder") has actively carried out the research and development of new products and market promotion, and the operation has remained stable. However, the sales of medical device sales subsidiaries failed to confirm the impact of sales revenue during the reporting period. During the reporting period, Wilder consolidated the operating income of 94 million 983 thousand and 400 yuan, down 23.50% compared with the same period last year. The net profit attributable to the parent company owner was 10 million 459 thousand and 700 yuan, a decrease of 23.80% over the same period last year.


(3) during the reporting period, the company obtained equity investment from Haining Hongda small loan Limited by Share Ltd and Haining Hongda equity Cci Capital Ltd, earning an investment income of 32 million 455 thousand and 500 yuan, representing a decrease of 4 million 324 thousand and 600 yuan over the same period last year.