Shandong Hailong: Differential Jute Pulp Fiber Project

On December 9, 2010, Shandong Hailong (000677) The announcement was made that Weifang Finance Bureau subsidized the company with 63 million yuan in the form of actual payment for the development of the company. The government subsidy will be included in the current profits and losses as non operating income, and the company's EPS this year will be increased by 0.07 yuan, doubling the company's performance on the basis of original estimates.

In addition, the company announced that it decided to jointly invest 100 million yuan in Xinjiang Hailong with New Agricultural Development (600359), of which 55 million yuan was contributed by the company, accounting for 55% of the capital stock of Xinjiang Hailong after the capital increase. This capital increase is expected to accelerate the company's 45000 tons Differential jute pulp fiber project Progress, the project is test The kenaf planted in Xinjiang is usually harvested in October, and the test results are expected to be obtained by the end of the year.

The differentiated jute pulp fiber not only has the characteristics of ordinary cotton pulp viscose fiber, but also retains the antibacterial, moisture absorption, perspiration, dyeing and biodegradable properties of natural jute fiber. It is a new differentiated and functional viscose fiber product and has broad market prospects in textile and industrial fibers. Jute processing technology is difficult, fiber separation is low, spinnability is poor, and decolorization is difficult. Therefore, jute pulp fiber has high technical barriers. The product price is up to 24000 yuan/ton, and the gross profit rate is more than 35%. Once the project is successfully tested and industrialized, it will achieve annual sales revenue of 1.08 billion yuan, net profit of 284 million yuan, and increase the company's EPS by 33 yuan.