On the evening of May 17th, Annoqi announced that in order to integrate the market resources of the parent company, the company intends to build it into a high-end differentiated disperse dye production base to improve the production capacity of the company, meet the growing market demand, and comprehensively upgrade product technology. , Process equipment, energy efficiency, environmental protection, etc., to further improve the core competitiveness of the company, increase the company’s market influence, promote the transformation and upgrading of the industry, and promote the development process of the conversion of new and old kinetic energy in Shandong Province.

The project is constructed in two phases. The first phase of the project will produce 52,700 tons of high-end differentiated disperse dyes, the supporting construction of the raw material production capacity of dyes is 49,000 tons, the production capacity of filter cake (dye semi-finished products) is 26,182 tons, and the second phase will produce 27,300 high-end differentiated disperse dyes. The production capacity of raw materials for dyes is 15,000 tons, and the production capacity of filter cakes (semi-finished dyestuffs) is 9,864 tons. After the project is completed, it will reach the scale of 180,000 tons of comprehensive production capacity of the whole plant, of which 80,000 tons of high-end differentiated disperse dyes, 64,000 tons of raw materials for dyestuffs, and 36,046 tons of filter cake (semi-finished dyes).

According to the disclosure, the construction investment for the first phase of the project was 1.009 billion yuan, and the investment for the second phase was 473 million yuan. In addition, the interest during the construction period was 40.375 million yuan, and the initial working capital was 195 million yuan, so the total project investment was 1.717 billion yuan. The financing method of the project is bank loans of 500 million yuan, accounting for 29.11% of the total investment; the enterprise self-raised funds of 1.217 billion yuan, accounting for 70.89% of the total investment.

Annoqi said that the project will be constructed in two phases. The first phase of the project will start in December 2020 and is expected to be completed in June 2022; the construction period of the second phase will be determined based on the production capacity of the first phase.

After the project is completed, the annual sales revenue will be 3.093 billion yuan, the total profit will be 535 million yuan, the net profit will be 401 million yuan, and the tax will be 317 million yuan. The results of financial analysis show that the financial internal rate of return after income tax on all investment of the project is 21.03%, the financial net present value is 816 million yuan, the investment payback period is 6.66 years (including the construction period), the total investment return rate is 22.81%, and the net sales profit rate is 13.23. %.

According to public information, Annoqi is mainly engaged in the R&D, production and sales of mid-to-high-end differentiated dyes.

Annoqi has previously announced that it intends to raise a total of no more than 450 million yuan from no more than 35 specific investors to expand production capacity and supplement working capital. According to the fixed increase plan, the company plans to raise funds for 22,750 tons of dye and intermediate projects (250 million yuan), an annual output of 5,000 tons of digital ink projects (40 million yuan), and an annual output of 10,000 tons of broad-spectrum disinfectant potassium monopersulfate The compound salt project (70 million yuan) and supplementary working capital of 90 million yuan are implemented by its wholly-owned subsidiary Yantai Annoqi.

In the investor relations event announced on April 30, Annoqi said that the company has built a capacity of 30,000 tons of disperse dyes, 14,750 tons of reactive dyes, and 16,000 tons of intermediates. In addition, the company is also expanding new production capacity, building a new disperse dye production capacity of 52,700 tons and an intermediate production capacity of 22,000 tons.

At that time, the company also stated that in 2021, it will further increase investment in dyestuffs and its intermediate projects and increase dye production capacity. The company plans to officially land on Shandong Anok’s high-end differentiated disperse dyes and supporting construction projects. The first phase of the project has a construction capacity of 52,700 tons In addition, the 14,750 tons of reactive dyes project is expected to start production in the second quarter of 2021. With the smooth implementation of the project, the company’s production capacity will be further expanded, the degree of intermediate support will be further improved, and the scale effect and product competitiveness will be further enhanced. There will be further improvements.

However, the recent 2021 quarterly report released by Annoqi shows that during the reporting period, the company achieved operating income of 341 million yuan, a year-on-year increase of 11.59%; net profit of 49.831 million yuan, a year-on-year increase of only 1.34%. The company said that during the period, operating income increased by 35.4 million yuan over the same period last year, correspondingly increased operating gross profit by 12.01 million yuan. The increase in operating income was mainly due to the increase in sales of disperse dyes compared with the same period last year. However, during the period, the company’s operating gross profit margin decreased by 9.5 percentage points compared with the same period of the previous year, correspondingly reduced operating gross profit by RMB 32.38 million. The decrease in operating gross profit margin was mainly due to the impact of the overseas new crown epidemic, the sluggish demand from downstream textile, printing and dyeing enterprises, and the decline in the sales price of dye products compared with the same period last year, which affected the corresponding reduction in operating gross profit margin.

Regarding this investment in the construction of high-end differentiated disperse dyes and supporting construction projects, Annoqi stated that it is to further strengthen the main business of fine chemicals, meet the growing demand for medium and high-end dyes, and enhance the company’s market position and operating performance. After the completion of the project, the company’s production capacity of high-end dyes and related intermediates will further increase, the product line will be further expanded, and the degree of intermediate matching will be further improved, which will have an important and positive impact on the company’s competitive advantage and business performance.