On June 10, Shanghai Yuexin Health Group Co., Ltd. issued the "Announcement on the Signing of an Investment Contract between a Wholly-Owned Subsidiary and the People's Government of Fengcheng City, Jiangxi Province."
The announcement stated that Jiangxi Mike Ceramics Co., Ltd. (hereinafter referred to as "Jiangxi Mike"), a wholly-owned subsidiary of Shanghai Yuexin Health Group Co., Ltd. (hereinafter referred to as the "Company"), recently signed a " Investment Contract" (hereinafter referred to as the "Investment Contract").
Jiangxi SMIC is located in the Fine Ceramics Industrial Park in Fengcheng City, Jiangxi Province. It is the production base of "SMIC". In recent years, the company's ceramic tile business has been developing well, but competition in the ceramic tile industry has become increasingly fierce. The company's ceramic tile business has encountered development bottlenecks through OEM expansion of production capacity. In order to adapt to market demand and expand the company's sales of high-margin, large-sized ceramic tile products, the company plans to expand its production capacity in Jiangxi The Fengcheng production base is carrying out an expansion project on the existing 480 acres of unbuilt land with a total investment of RMB 1.25 billion. It is planned to build four high-end ceramic tile production lines.
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All production lines have reached production and sales
Smick’s sales are expected to reach 3.2 billion yuan
The announcement shows that this expansion project is planned to be gradually implemented from the end of 2021, and the project construction period will be approximately four years. The first phase construction investment is 250 million yuan, and the planned investment funds will come from the company's own funds, including 200 million yuan in fixed assets investment and 50 million yuan in initial working capital. Through large-scale new products to increase gross profit and management synergies, if the first phase of investment reaches production and sales are realized, the company's overall ceramic tile business is expected to have annual sales of 1.9 billion yuan and a net profit of 130 million yuan.
The investment in all four production lines is 1.25 billion yuan, including 1 billion yuan in fixed assets investment and 250 million yuan in basic working capital. If all production lines are completed and reached capacity and sales are realized, the company's overall ceramic tile business is expected to have annual sales of 3.2 billion yuan and net profit of 300 million yuan.
Yuexin Health said that the company will continue to develop a dual-brand operation strategy in the future, and while consolidating the current fashionable and healthy building materials business, it will steadily develop a large health industry that combines medical care and nursing care. On the one hand, "Smick" is used as the brand of fashionable and healthy building materials such as building ceramics and negative ion health materials; on the other hand, "Yuexin" is used as the brand of the big health business, focusing on women's medical service business and focusing on "vital elders" and&ldquo"Elderly people with dementia and disability who need professional care" provide integrated and systematic elderly care services from health management, medical services, rehabilitation care to elderly care. At the same time, the company will continue to build its own Develop the health business through external mergers and acquisitions
According to the agreement signed between the Fengcheng City People's Government of Jiangxi Province and Jiangxi SMIC Ceramics Co., Ltd., SMIC ensures that the fixed asset investment intensity of the project is not less than 2.6 million yuan per mu, the building floor area ratio reaches above 1.0, and the expected benefits are expected to be The operating income is about 2 billion yuan, the annual tax revenue is about 100 million yuan, and it provides local employment for about 800 people; the level of process equipment, technology research and development level, and investment in environmental protection facilities have all reached the industry's advanced standards.
In addition, except for delays caused by factors such as changes in national and local laws, regulations and policies or relevant government approvals, SMIC must start construction before December 31, 2021, and complete and put into production before December 31, 2025 with investment in place.
Yuexin Health announced that this new investment project is to expand the existing Jiangxi ceramic tile production base, further optimize and enrich the product structure of the company's existing ceramic tile product varieties, and is conducive to the company's high-margin ceramic tile products. The increase in production capacity meets the demand for supporting production capacity as the company's ceramic tile business continues to develop and its sales scale continues to expand. At the same time, it is conducive to the company's new product innovation and enables the company to maintain its leading advantages in technology and products.
This project will not have a significant impact on the company's operating results in 2021. From a long-term development perspective, this external investment and expansion project will help enhance the company's profitability and sustainable development capabilities, and will have positive significance for the company's future development.
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SMIC’s revenue in 2020 is 1.022 billion yuan
According to a previous announcement by Yuexin Health, Yuexin Health achieved total operating income of 1.195 billion yuan in 2020, a year-on-year increase of 2.44%; the net profit attributable to shareholders of listed companies was 57.195 million yuan, a year-on-year increase of 51.02%. The reason for the growth is that the company has stepped up efforts to expand customer channels for ceramic tile sales projects. Ceramic tile sales revenue increased by 44.9236 million yuan year-on-year, an increase of 4.60%.
Yuexin Health's business is divided into building materials business, medical services, elderly care services, investment real estate leasing, etc. The building materials business segment mainly operates the high-end architectural ceramic brand "Smick" ceramic tiles and the ecological functional building materials product "Smick Negative Ion Health Materials" .
In the revenue structure, ceramic tiles account for the largest proportion of revenue. In 2020, Smike Ceramics’ operating revenue was 1.022 billion yuan, accounting for 10% of the total revenue of Yuexin Health General Operations.The revenue was 85.58%, a year-on-year increase of 4.60%.
In addition, the sales volume of SMIC ceramic tiles in 2020 was 20.13 million square meters, a year-on-year increase of 10.3%; the production volume was 19.8 million square meters, a year-on-year increase of 6.52%; the inventory was 5.65 million square meters, a year-on-year decrease of 5.47%.
(The article is reproduced from Ceramic Information)
