Shenzhen Xinxing (603978.SH): Plans to invest 400 million yuan to build an aluminum-based high-end new material project with an annual output of 20,000 tons

Zhitong Finance App News, Shenzhen Xinxing (603978.SH) announced that Zhejiang Xinxing Lingchuan New Material Technology Co., Ltd., a wholly-owned subsidiary of the company, plans to sign a “Project Investment Agreement” with the Yangtze River Delta (Huzhou) Industrial Cooperation Zone Management Committee to establish a project company within the jurisdiction of the Yangtze River Delta (Huzhou) Industrial Cooperation Zone Management Committee. The project company has a registered capital of 100 million yuan to invest in the construction of aluminum-based high-end new materials projects.

The project plans 100,000 tons of aluminum-based high-end new materials, and the planned land use is about 150 acres. The specific location and area are subject to the land use red line map and the “State-owned Construction Land Use Rights Concession Contract”. Phased construction of the project: The first phase invested 400 million yuan to build a demonstration production line for an aluminum-based high-end new material project with an annual output of 20,000 tons.

This investment in the construction of an aluminum-based high-end new material project, on the one hand, relies on the performance advantages of the company's self-developed and self-produced aluminum foil blanks in terms of strength and ductility, which can effectively meet the rolling needs of 0.012mm ultra-thin aluminum foil, and build quality and cost barriers with high yield to enhance the company's high-end aluminum foil product market bargaining power and stable supply advantages; on the other hand, the project is a downstream extension of the aluminum foil blank business of a Luoyang subsidiary. It can absorb the internal production capacity of billets, drive an increase in the scale of billet production and sales, and improve the company's overall profit level.