Gelonghui reported on December 30 that Beijing New Building Materials Public (000786.SZ) announced that Beijing New Group Building Materials Co., Ltd. (hereinafter referred to as "the Company") held the 15th interim meeting of the 7th Board of Directors on December 27, 2024, and approved the proposal regarding the adjustment of the company's production line project.
The Company approves the adjustment of the thermal plastic polyolefin (TPO) waterproof membrane production line with an annual production capacity of 4 million square meters and the waterproof mortar production line with an annual production capacity of 0.05 million tons invested and constructed by its wholly-owned subsidiary Beijing New Waterproof Co., Ltd. in Chuzhou City, Quanjiao County, Anhui Province.
At the 11th interim meeting of the 7th Board of Directors held in April 2024, the Company approved the proposal regarding the construction and adjustment of the production line projects, agreeing to Anhui Waterproof's investment in the construction of a thermal plastic polyolefin (TPO) waterproof membrane production line with an annual output of 4 million square meters and a waterproof mortar production line with an annual output of 0.05 million tons in Quanjiao County, Chuzhou City, Anhui Province. Anhui Waterproof will be the operator of the project, which is estimated to have a total investment of 142.7317 million yuan, funded by self-owned funds and bank loans. The estimated construction period is 12 months from the commencement of civil engineering, and the expected after-tax financial internal rate of return is 13.39%.
After the project is completed, product sales will mainly cover regions such as southern Anhui, Jiangsu, Zhejiang, Shanghai, and Shandong Province. Based on the market demand in the target regions and the capacity utilization of the Anhui production base, Anhui Waterproof intends to increase the capacity of the waterproof membrane production line and the waterproof mortar production line and add investments to build a waterproof coating production line. This adjustment will increase the total investment amount of the project by approximately 432.3662 million yuan and will require an extension of the project construction period and adjustments to the after-tax financial internal rate of return.
After the aforementioned changes, the scale of the project will be an annual output of 0.13 billion square meters of waterproof membranes, 0.11 million tons of waterproof coatings, and 100,000 tons of waterproof mortar, with an estimated total investment of approximately 575.0979 million yuan. The estimated construction period will be 24 months from the commencement of civil engineering, and the expected after-tax financial internal rate of return after reaching production is 17.21%. Other contents such as project location, funding source, and operation entity will remain unchanged.
