Changshan North Ming (000158): To Terminate The Comprehensive Textile And Clothing Project In Xinjiang

Ge Long Hui April 24th Changshan North Ming ( 000158.SZ Announced that due to changes in the market environment and the company's business strategy, the company intends to terminate investment in Xinjiang to build a comprehensive textile and clothing project. The termination of the project still needs the approval of the shareholders' meeting of the company.

The project plans to invest. Thirteen point one one Billion yuan, planning land acquisition Six hundred and seventy-six point six The construction scale is 200 thousand spindles and 1000 air-jet looms. The annual sales revenue is expected to be realized after the project is completed. Fourteen point six three Billion yuan, annual net profit Seventeen thousand six hundred and fifty-six point four six Ten thousand yuan. Total investment of phase I Project Five point nine Billion yuan, mainly to build 90 thousand spindles and 400 air-jet looms to achieve sales revenue in the year after delivery. Four point five Billion yuan, an average annual net profit of 45 million 160 thousand yuan. The project is divided into two phases, and is scheduled to start in May 2017, with a construction period of 18 months.

Up to now, the project has completed the design of the project plan and part of the construction drawings, completed the environmental protection evaluation, examination and planning, and completed the two tenders of the weaving workshop, the dining hall, the dormitory building and the wall construction, and the tendering work of the project supervision. Contracts for construction of canteens, dormitories and walls have been signed, and construction supervision contracts have been completed. The construction of the wall foundation has been completed. By the end of 2019, project construction expenditures had been accumulated. Five hundred and sixty-six point five five Ten thousand yuan.

In the process of project construction, the global economic downturn and domestic and foreign textile markets are in a state of depression. Xinjiang's support policy for textile industry has also been adjusted. Xinjiang's textile production capacity has expanded rapidly, and the investment risk of this project has increased. In addition, the strategic adjustment of the company has increased investment and support for the software sector. Low production capacity is curtailed. Based on the judgement of the current market situation and the development trend of the industry in a certain period of time, the continued investment is expected to achieve an ideal economic benefit in the short term. In order to reduce investment risks and better safeguard the interests of listed companies and all shareholders, the company intends to terminate the project in line with the principle of risk control and prudent investment.