Analyze the feasibility of carton project from business scale, financial status, technical level and management ability

Shanghai Xianggang Packaging also elaborated on the feasibility of raising funds from several aspects:

1. In terms of scale of production and operation, in 2016, the company's production capacity was 280 million color boxes/year, and 500 million labels/year. The utilization rate of production capacity was about 90% from 2014 to 2016. More than 95% of the investment projects funded this time will add 580 million color capacity/year of color box and 240 million yuan/year label, which will effectively resolve the problem of insufficient production capacity as the company's future orders increase.


2. From the aspect of financial status, as of December 31, 2016, the company's asset-liability ratio was 40.21%, and the space for debt financing was limited. The raising of funds raised through the issuance of the proceeds of this offering can ease the company's liquidity pressure. , reduce financial costs;


3. In terms of technical level, the company's packaging and printing product technology is relatively mature and has a certain amount of independent research and development capabilities, which provides a good technical basis for the implementation of fund-raising projects.


4. In terms of management capabilities, the company has been engaged in the production, R&D and sales of packaging and printing products since its inception, and has accumulated rich management experience and provided management assurance for the implementation of the project.


According to the company, its main funding uses are civil engineering and equipment purchases. They were more than 90 million yuan and 140 million yuan respectively. The company also stated that it expects the investment to recycle it for 6.74 years.

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