On the evening of September 29, Zhejiang Jinggong Integrated Technology Co., Ltd. (hereinafter referred to as "Jinggong Technology") issued an announcement regarding the investment in the construction of a high-performance fiber project by its wholly-owned subsidiary Zhejiang Jinggong Carbon Material Technology Co., Ltd. (hereinafter referred to as "Jinggong Carbon Material"). In line with the company's overall layout of the carbon fiber industry, which integrates original silk equipment, carbonization equipment, and composite material equipment, Jinggong Carbon Material plans to invest in the construction of a high-performance fiber project in the Hangzhou Bay Shangyu Economic Development Zone, Shaoxing City, Zhejiang Province (within the factory area of Jinggong Carbon Material) using its own or self-raised funds, with an estimated investment amount of 669 million yuan.
The announcement shows that the project plans to build two high-performance carbon fiber production lines, with a single-line capacity of 5,000 tons/year. The project mainly involves purchasing and installing main process equipment, utility engineering equipment, testing and inspection equipment, and other equipment, as well as constructing production workshops, quality inspection buildings, research and development buildings, and comprehensive buildings. The project will use its own technology, and the main equipment will be independently researched and manufactured. After the completion of the project, it aims to address the current situation of poor quality and low capacity of high-performance fibers in China.
The total estimated investment for this project is 669 million yuan, including land and preliminary expenses of 66.16 million yuan, construction investment of 131 million yuan (including the estimated price of 70 million yuan in the "Construction Engineering Contract" signed between Jinggong Carbon Material and its related party Zhejiang Jinggong Construction Engineering Co., Ltd. on January 24, 2024), equipment investment of 451 million yuan, and operational start-up funds and other expenses of 20.64 million yuan. The construction period of the project is expected to be 10 months. The preliminary work such as equipment selection and plant layout has been completed, and it is planned to start production and operation in June 2025.
According to estimates, after the completion of this project, it will form an annual production capacity of 10,000 tons of high-performance carbon fiber. After reaching production, it is expected to achieve an annual sales revenue of 575 million yuan, an annual profit of 89.06 million yuan, a sales profit margin of 15.48%, and an investment payback period (after tax) of 7.66 years (including a 2-year construction period). Jinggong Technology and its subsidiary Jinggong Carbon Material mainly engage in the research and development, production and sales, and technical services of high-tech products such as carbon fiber new material special equipment, solar photovoltaic special equipment, and new energy-saving special equipment for buildings, as well as precision manufacturing and processing business and project development. Among them, the main products of carbon fiber and composite material equipment manufacturing are: carbon fiber complete production lines, waste gas treatment systems, composite winding equipment, original silk winding machines, and carbon silk winding machines, etc. Jinggong Carbon Material was established on March 18, 2021, with a registered capital of 180 million yuan, and is registered at Room 317, No. 88 Kangyang Avenue, Hangzhou Bay Economic Development Zone, Shangyu District, Shaoxing City, Zhejiang Province. On April 25, 2024, Jinggong Technology issued an announcement regarding the proposed acquisition of 100% equity of Jinggong Carbon Material and related party transactions. The announcement shows that according to the overall development strategy of Jinggong Technology and the needs of the carbon fiber industry, the company plans to sign a "Share Transfer Agreement" with its related party Zhejiang Jiabao, and plans to acquire 100% equity of Jinggong Carbon Material held by Zhejiang Jiabao in cash with its own funds. After the acquisition is completed, Jinggong Carbon Material will become a wholly-owned subsidiary of the company.
According to the latest news released by the Shangyu Daily on August 15 this year, the construction of Jinggong Carbon Material's 40,000 tons/year high-performance polyacrylonitrile (PAN) fiber project is in full swing. The project includes 8 high-performance PAN fiber production lines, and after completion, it will form a production capacity of 40,000 tons/year of high-performance original silk for PAN-based carbon fibers. This original silk will be used to produce T700 and T800 grade PAN-based carbon fibers.