The hottest printing giant plans to land on A-shar

Another printing giant plans to land on the A-share market and is raising 700million yuan for large-scale expansion

release date: Source: Huaxia times editor: Bao's number of Views: 2010 copyright and disclaimer

core tip: Recently, Zhongrong Printing Group Co., Ltd. (hereinafter referred to as Zhongrong printing) submitted a stock offer to land on the Shenzhen Stock Exchange, so how do we solve such problems? Today, StarTech will introduce to you in detail how to deal with the inaccurate measurement data of the lower tensile testing machine. It will publicly issue no more than 48.3 million shares and raise 694million yuan for capacity expansion and other projects. If it goes ahead, A-share will usher in the second largest printing industry

[China Packaging News] recently, Zhongrong Printing Group Co., Ltd. (hereinafter referred to as Zhongrong printing) submitted a prospectus to log on to the Shenzhen Stock Exchange, and publicly issued polyfluorouracil to describe its current situation: the company has no more than 48.3 million shares in full capacity production lines, raising 694million yuan for capacity expansion and other projects. If it goes ahead, A-share will usher in the second largest printing industry

under the current multiple pressures of rising raw material prices, continued environmental pressure, overcapacity in the industry, and upgrading of consumption patterns, the printing industry is reshuffling. With the counter trend expansion of Zhongrong printing, how much chance can the fund-raising project win

expand production capacity against the trend

Zhongrong printing has been focusing on the research and development, design, production and sales of paper printing packaging materials, with the well-known FMCG market as the main field. Its products mainly include folding color boxes, high-end gift boxes, promotional display tools, blister cards, paper bags, etc. The company ranks 8th in the "2016 top 50 paper packaging enterprises" in the ranking organized by China Packaging Federation

in the annual report from 2015 to 2017, the company's revenue reached 1.315 billion yuan, 1.422 billion yuan and 1.710 billion yuan respectively, with a compound growth rate of 14.01%, and the net profits attributable to the shareholders of the parent company were 108 million yuan, 69.7386 million yuan and 146 million yuan respectively

according to the company's revenue scale in 2017, Zhongrong printing has become the second largest company in the industry after Yutong Technology (50.380,0.38,0.76%) (with a revenue of 6.948 billion yuan in 2017)

this was mainly due to the frequent mergers and acquisitions and capacity expansion operations of Rongyin printing during the reporting period

in July 2015, Zhongrong printing purchased 100% equity of Kunshan Zhongrong held by Zhongrong group (Hong Kong) for us $14million to absorb and merge its paper printing and packaging business; In July 2015, the company invested 12million US dollars to purchase 46.15% equity of Tianjin Science and technology held by Zhongrong group (Hong Kong), thereby holding 100% of Tianjin Science and technology; From March to December 2016, Tianjin Science and technology, a wholly-owned subsidiary of the company, successively acquired Tianjin printing and the company's main business-related operating assets, liabilities, industrial output standard reporting services at the price of 136 million yuan; In April 2016, the company acquired 100% equity of Guangdong Linghui held by Rongfu industry for 10million yuan

at the same time, in order to further expand the production scale, improve the company's intelligent manufacturing level, and improve customer service capacity, Zhongrong printing invested a total of 677 million yuan during the reporting period, based on projects such as capacity expansion, information system upgrading and transformation, and built new plants in Zhongshan, Tianjin, Shenyang and Kunshan, and purchased a number of new printing equipment

after rapid expansion of production, during the reporting period, the production capacity of the company's main products increased from 791million prints in 2015 to 942million prints in 2017, and the capacity utilization rate remained at about 83% - 85%, without saturated utilization

however, the expansion of Zhongrong printing did not stop there. The fund-raising is 694million yuan, and the company plans to use 447million yuan for the capacity expansion of high-end printing and packaging products, printing and packaging products, packaging and decoration printing and other projects. After the project is completed, the company will increase the production capacity of paper packaging materials by 2.38 billion every year

according to the company's capacity layout plan, the company has established four production bases in Zhongshan, Tianjin, Kunshan and Shenyang, and may invest and build factories in Southwest China when the time is ripe in the future. At the same time, because many group key customers have factories in Southeast Asia, in order to cooperate with the JIT production mode of key customers, the company also plans to invest and build factories in Southeast Asia in the future

"the packaging printing market has been basically saturated and will remain the status quo for a long time." Analysts at Southwest Securities (3.800, -0.05, -1.30%) told Huaxia times that the printing industry is a typical consumer supporting industry, and its market is determined by downstream demand, but in recent years, industry orders have shown weakness

at present, the whole printing industry is expanding vertically in the industrial chain. With the transformation and upgrading of the industry, the crisis of overcapacity and the upgrading of environmental protection, the printing industry is bound to usher in a new round of reshuffle. When the shrinking demand is finalized, a large number of backward production capacity are facing the fate of being eliminated

financial pressure is worrying

whether the scale effect brought by Zhongrong printing's counter trend expansion can help the company further improve its competitiveness and increase its performance is unknown, but from the perspective of the company's capital, the rapid expansion has brought financial pressure to the company's operation

in order to further expand and upgrade production, Zhongrong printing borrowed heavily during the reporting period, raising funds through bank loans to build plants, purchase equipment, and optimize information systems

at the end of each reporting period, the company's total assets were 1.3 billion yuan, 1.642 billion yuan and 1.9 billion yuan respectively, with growth rates of 26.36% and 15.75% at the end of 2016 and 2017 respectively. The continuous growth of total assets was mainly due to the continuous expansion of the company's business scale and the increase of fixed asset investment

in the same period, the total liabilities of the company also increased significantly, which were 777 million yuan, 1.05 billion yuan and 1.163 billion yuan respectively. The growth rates at the end of 2016 and 2017 were 35.15% and 10.69% respectively, of which current liabilities accounted for 92.14%, 82.22% and 77.63% of the total liabilities, mainly short-term loans, accounts payable, employee compensation payable and dividends payable

at the end of each reporting period, the asset liability ratio (parent company) of the company was 51.33%, 51.49% and 51.64% respectively, significantly higher than the asset liability level of Listed Companies in the same industry

in order to maintain the normal operation of the company, the company raised funds through bank loans, factoring of accounts receivable and other ways, resulting in the continuous increase of bank loans at the end of the reporting period, which were 226 million yuan, 368 million yuan and 482 million yuan respectively

high debt investment has caused obvious financial pressure to the company

during the reporting period, the company's interest expenditure reached 13.4606 million yuan, 16.287 million yuan and 18.0334 million yuan respectively, accounting for 10.43%, 19.48% and 10.59% of the total profits of the current period, which greatly diluted the economic benefits of the company

the high debt operation made the working capital (current assets - current liabilities) of Rong printing continue to be negative during the reporting period, which were -131.6014 million yuan, -116.841 million yuan and -95.8542 million yuan respectively

in order to urgently supplement working capital and solve financial difficulties, the company hopes to raise 100million yuan to repay bank loans and 50million yuan to supplement working capital

Zhongrong printing believes that although the current ratio and quick ratio of the company are low and the asset liability ratio is high, the company is in good operation, with strong profitability, good credit of financial institutions and low debt repayment risk. During the reporting period, the company's operating income continued to increase, and the cash flow from operating activities was good. With the continuous and stable operation of the company, the Solvency Index will gradually improve

"the printing industry as a whole is facing the risk of deterioration of the industry's business environment." CITIC Securities China, the most profitable private entrepreneur, wants to dismantle the vertical integration system that has been established for more than 20 years (16.380, -0.19, -1.15%). Analysts believe that at present, the domestic packaging and printing industry has a large number of enterprises, the industry concentration is relatively low, there is repeated construction, and it is in the full competition stage under overcapacity. At the same time, in the past two years, the price of raw materials has risen, environmental protection supervision has been continuously strengthened, overcapacity The upgrading of consumption patterns has put forward higher requirements for the printing industry, and the industry is facing a new round of reshuffle. In the future, the printing industry market may develop into a small batch and personalized customization market segment, and enterprises relying on large-scale production may be eliminated

for how the company can maintain its core competitiveness in the future and make full use of the raised investment projects, we have called and written to Zhongrong printing, but as of the press, we have not received a reply