Yongjin disclosed the progress of stainless steel projects in Zhejiang, Jiangsu, Vietnam, Thailand and other countries.

Recently, Yongjin shares said at the online roadshow event of publicly issuing convertible corporate bonds that the imported equipment of the IPO project has now entered the installation phase and is expected to reach production by the end of January next year.

The 125000-ton relocation project in Zhejiang has been installed and debugged and put into trial production by the end of October. The first production line of praseodymium Seiko metal laminated composite project was put into trial production at the end of this month. The Silver Sheep Management Industry project under construction is expected to start producing some products by the end of December. Vietnam Yongjin Company's "annual production capacity of 250000 tons of precision stainless steel strip project" has now entered the stage of equipment installation. Due to the impact of the epidemic, the installers are nervous, and it is expected that the installation will be completed and put into trial production in March next year. Thailand Yongjin "annual production capacity of 260000 tons of precision stainless steel plate belt project" has completed the land requisition and is going through the preliminary procedures such as design planning and environmental protection examination and approval.

Yongjin said that the company's annual production capacity of 195000 tons of ultra-thin precision stainless steel plate and strip is to be increased by 75000 tons of precision cold-rolled stainless steel plate and 120000 tons of wide cold-rolled stainless steel plate and strip.

It is estimated that after all the above projects are completed in 2023, the company will achieve an annual production capacity of 348500 tons of precision cold-rolled stainless steel strip (regardless of the impact of relocation and replacement of the original 104500 tons of precision production capacity). It accounts for 38.72% of China's estimated total market demand of 900000 tons (17% in 2020). If the company completes the relocation and replacement of its original precision production capacity of 104500 tons, the company's annual production capacity of precision cold-rolled stainless steel strip will be 244000 tons. Accounting for 27.11% of China's estimated total market demand of 900000 tons; The annual production capacity of wide-width cold-rolled stainless steel strip is 2.836 million tons (including 250000 tons in Vietnam and 260000 tons in Thailand), accounting for 14.46% of China's estimated total market demand of 19.609 million tons (11.19% in 2020).

Yongjin shares said that the total amount of funds raised by the company's public offering of convertible bonds is 1 billion yuan, which will be used for the construction and supplementary liquidity of the "annual processing project of 195000 tons of ultra-thin precision stainless steel plate and strip".

It is also learned that Yongjin shares said at a recent online exchange meeting on the public offering of A-share convertible corporate bonds that the company and Jiuquan Iron and Steel have signed a long-term strategic cooperation agreement. The cooperation model is that Jiugang provides stable raw materials and locks in processing fees, and the profit level is similar to that of Zhejiang Jiangsu projects.

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