Rainbow Textile will acquire Shandong Deyuan Mill

Texhong Textile and Yunsheng Group, Huiyuan Hong Kong and other related parties have recently signed a framework agreement to acquire the entire equity of Shandong Deyuan Spinners with RMB 339 million. Tianhong Textile still purchases this asset at a premium of nearly 75%.

Under the backdrop of the weak demand of the entire textile industry in 2012, the performance of Texhong Textile has grown against the trend. This time, the company chose to purchase Deyuan Mills at a high premium, which is quite promising for its future performance prospects. According to the financial data, Rainbow Textile achieved operating revenue of RMB 7.341 billion in 2012, a year-on-year increase of 6.8%, and realized profit for the year of RMB 486 million, an increase of 693.6% year-on-year, of which yarn sales amounted to RMB 6.147 billion and accounted for 83.7% of total turnover. . For Tianhong Textile, at this time, the acquisition of the Deyuan yarn factory can only solve its urgent needs.

The company stated that the yarn products sold in the first five months of this year have sold approximately 96,500 tons. In the future, the demand for the yarns of the company is still very large. Therefore, it is necessary for the company to increase its production capacity by purchasing or constructing production facilities. Compared with the construction of new production facilities, the acquisition of Deyuan can increase the company's production capacity in a shorter period of time. The company stated that after obtaining a controlling stake in Deyuan, it will make good use of its production facilities to meet the company's demand for orders. At the same time, Deyuan's production capacity will be mainly used for the production of chemical fiber yarns, and Deyuan will lose money in a short period of time. For win.