China Fund News reporter Nan Shen
On the evening of October 8, International Composite Materials announced that it plans to invest in the construction of electronic-grade glass fiber production line equipment renewal and digital intelligence quality and efficiency improvement projects.
"Will effectively make up for the shortcomings of the business"
According to the announcement of International Composite Materials, the board of directors of the company held the fourth meeting of the third board of directors on October 8, 2024, and deliberated and passed the "Proposal on the Construction of Electronic Grade Glass Fiber Production Line Equipment Renewal and Digital Intelligence Quality and Efficiency Improvement Project", and agreed to invest 2.304 billion yuan to build an electronic grade glass fiber production line equipment update and digital intelligence quality and efficiency improvement project. The product structure of the project is about 85,000 tons of electronic grade glass fiber, and the construction period of the project is from January 2025 to December 2025.
Among them, the project construction investment is 2.238 billion yuan (including platinum rhodium alloy investment of 511 million yuan), the working capital is 44.622 million yuan, and the interest during the construction period is 21.5436 million yuan. The project construction fund includes the plant and supporting buildings for the construction project invested by International Composite Materials of 339 million yuan, which will be leased to Chongqing Tianze New Materials Co., Ltd. (hereinafter referred to as Chongqing Tianze, a wholly-owned grandson company of the company) after completion, and the project funds will be its own funds and bank loans.
International Composite Materials said that this investment is combined with the company's "14th Five-Year Plan" development plan, focusing on strengthening the electronics business, taking leading production capacity investment as an important starting point, and continuously improving the industrial competitiveness in related fields.
Chongqing Tianze has two glass fiber spinning production lines with a total design capacity of 70,000 tons, which are affected by factors such as low production capacity, outdated equipment, and backward process technology, and lack of strategic competitiveness compared with major competitors, which restricts business development. This investment will effectively make up for the shortcomings of the business and improve the market competitiveness of the company's spinning products.
However, the international composite materials also suggests that the main downstream products of the project, CCL, are greatly affected by the electronic information industry, and its market capacity has certain potential risks for electronic glass fiber products. In addition, the new project funds come from its own funds and bank loans, the investment amount is large, the construction period is long, and during the construction of the project, if the credit policy and financing channels change, the company may bear certain capital risks.
The monetary funds on the account are about 2.3 billion yuan
According to public information, International Composite Materials was established in 1991 and is an important pillar enterprise of the glass fiber new material industry of Yuntianhua Group Co., Ltd., with R&D, production and sales of glass fiber and composite materials as its core business. The company's glass fiber product varieties mainly include alkali-free glass fiber twisted roving, spinning yarn, chopped fiber, checker, fabric, etc.
International Composite Materials was only listed on the GEM on December 26, 2023, and the company issued an initial public offering of 700 million shares, raising 1.697 billion yuan after deducting the issuance costs. On August 23 this year, the company announced that the fund-raising project "F10B with an annual output of 110,000 tons of glass fiber intelligent manufacturing cold repair technical transformation project" was affected by the arrival of individual customized equipment, device commissioning and other factors, combined with the current market supply and demand relationship for the consideration of the project implementation schedule adjustment, the company intends to postpone the project.
In 2022, the revenue and non-net profit will decline by about 5% and 9% respectively, and in 2023, that is, the year of listing, the operating income will decline by 9.35%; Net profit and non-net profit fell by more than 50%, reaching 52% and 59% respectively. In the first half of 2024, the company will turn into a loss, with a net profit loss of 95.75 million yuan, and a loss of about 150 million yuan after deducting non-profits.
As of the end of the first half of this year, the monetary funds on the international composite account were 2.345 billion yuan, but the short-term borrowings reached 4.097 billion yuan, and there were 1.868 billion yuan of "non-current liabilities due within one year".
As of the close of trading on October 8, the latest market value of international composite materials was 17.6 billion yuan.
Editor: Joey
Review: Xu Wen