Jiaxin Silk (002404): Changing 42 Million Yuan Fundraising Purpose To Build Garment Production Base In Burma

On October 11th, the latest announcement of Jiaxin silk, a listed company, showed that it planned to change the use of some raised funds and spend 42 million yuan to build a garment production base in Burma.

In February 2018, Jiaxin silk made a net investment of 397 million yuan by way of non-public offering of shares. Among them, 164 million plan is used for "smart factory and foreign trade integrated service platform project", 150 million yuan for "warehousing logistics base project", and 81 million 880 thousand yuan for "private brand marketing channel intelligent upgrading project".

As of June 30, 2019, the investment progress of the above three projects was 16.62%, 35.55% and 0.67% respectively.

Now the company adjusts the investment scale of "smart factory set and foreign trade integrated service platform project". The investment amount will be adjusted from 164 million 120 thousand yuan to 122 million 120 thousand yuan, and the total amount of 42 million yuan raised will be invested in the "Burma garment production base project".

The company said that the implementation of the Burma garment production base project is conducive to circumvent the risk of order transfer in the international situation, and can also use Burma's cheap and abundant labor resources to enjoy preferential policies.

According to the data, Jiaxin silk is a production and marketing company of silk products. In the first half of this year, the company achieved 1 billion 745 million yuan in revenue and 78 million 590 thousand yuan in profit.