Main points of investment:
It is in the leading position of nylon industry. The company, formerly known as the Nitrogenous Fertilizer Plant in Xinhui County, Guangdong Province, transferred to produce nylon 6 chemical fiber products in 1985. It is the first manufacturer in the country to introduce nylon 6 production equipment, including slicing, polyfilament, elastic filament and so on. At present, it has formed an one-stop production system covering polymer chips, spinning, knitting and printing and dyeing, which is in a leading position in the domestic nylon industry. The company has been committed to building the strongest and largest nylon base in China to become a competitive world-class company.
The nylon industry has a broad space. Because nylon has excellent properties such as high strength, good wear resistance and resilience, mild skin touch and so on, the products are widely used in clothing materials, industrial silk, and decorative carpets. In recent years, the nylon industry overcapacity, manufacturers vicious price competition, raw materials and product prices all the way down, the profitability of the industry is low. With the continuous growth of demand and the upgrading of consumption in the future, there is a broad space for the development of nylon industry. In 2015, the company produced 190500 tons of slices, an increase of 6.73% over the same period last year, 69100 tons of fiber and silk, an increase of 8.85% and 11.64%, among which the production scale of nylon chips was in the forefront of the industry. With the trial production of the third phase of the differentiated nylon filament project in 2015 and the recent completion of the overhaul of 9 production lines and the gradual resumption of production, the production capacity of nylon filament will be improved. The company also cooperates with South China University of Technology, Donghua University and other well-known universities to set up an industry-university-research base with obvious advantages in new product research and development.
The printing and dyeing business remained stable. The printing and dyeing industry has been highly dispersed and highly concentrated for a long time. With the implementation of the most stringent Environmental Protection Law in the history of January 2015 and the convening of the G20, the elimination of backward production capacity in the printing and dyeing industry has been significantly speeded up. We expect the printing and dyeing industry to be in a capacity loss cycle in the next two years. The company achieved sales revenue of 84.3029 million yuan in 2015, accounting for 2.95% of the main business income, with a gross profit margin of 14%, and the business remained relatively stable.
The failure of SMC's acquisition has had little impact on the company at present. In May 2014, the company announced that Mei Xin Investment, a wholly-owned subsidiary, intends to acquire a 9.73% stake in San Midea Medical. The company announced on September 24, 2015 that it would suspend planning for the acquisition because of differences between the two sides on the core terms of the transaction. Due to the small proportion of investment in Sengmei Medical, the suspension of the acquisition has little impact on the company at present.
Major shareholders increased their holdings by 20 million, demonstrating confidence. The company announced on October 9 last year that Chairman Liang Baisong intends to buy shares in Meida through the secondary market with a market value of not less than 20 million yuan in the next six months. As of January 8 this year, the purchase plan has been completed, increasing its holdings by more than 20 million yuan, a total of 1.7548 million shares of the company. This increase fully demonstrates the confidence of senior executives in the future development of the company and has a positive impact on the operation of the company.