Tech-Long's Cost Advantage Expands PET Bottle Market Effectively

In 2009, Tech-Long successfully completed the issuance of additional funds. The funds raised were mainly invested in the technical transformation of NC automatic secondary packaging equipment and the PET bottle supply chain system project. The raised investment project will expand the company's existing production capacity, and the industrial chain will expand downstream. After the non-public issuance, the owners' equity attributable to the shareholders of the listed company and the net assets per share attributable to the shareholders of the listed company have been greatly increased. Since the implementation of the raised investment project is conducive to the company's integration of the upstream and downstream industry chain, improve product performance to meet the needs of downstream customers, so the company's profitability will be greatly improved. After the project reaches production capacity, the company will increase revenue by about 125 million yuan each year, and the new EPS will be about 0.20 yuan. The rapid development of current beverage consumption has spawned a huge demand for PET bottles. PET bottles have the characteristics of safety, light weight, low cost, and compliance with environmental protection requirements. As the preferred material for beverage packaging in the world, PET bottles are rapidly replacing glass bottles and metal cans and replacing paper packaging in some areas. The PET bottle packaging manufacturing industry is a technology and capital intensive industry. As the leading provider of beverage packaging machinery in China, the company has the ability to provide PET bottle supply chain system services and is more cost-effective than domestic major PET bottles. Manufacturers have greater advantages. The company raised funds to invest in the establishment of a PET bottle supply chain system, explore the company's new development model, and expand and consolidate the high-end customer base market. In January of this year, the company signed major contracts with Coca-Cola in Guangdong and Xiamen respectively. This is the first time the company provides PET bottles, PET bottled purified water, and mineral water processing services to customers. This marks that the company's business has been successfully extended to the downstream industry. The beverage consumer market has a huge capacity, and the company's business expansion will help improve the company's future development space. At the same time, this kind of processing at the customer's site is a new business model for the company's development. Through the demonstration effect of the business model, it will help the company's business achieve rapid growth.