Jiangsu Taichu Silk Technology Co., Ltd. first publicly issued the stock prospectus Summary (Upload C2 Edition)

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(Upload C2 version)

As of June 30, 202, the company has 96 trademark rights, and the specific situation is as follows:

The company’s main business model is an alternate processing, less trademarks, and the company’s production and operation is relatively low. As of the date of signing the intention of this prospection, there is no dispute between the company owns or used.

4, main business qualification

The company is mainly engaged in the development, production and sales of knitted fabrics and knitwear. The company has no specific qualification requirements. Some products are involved in the company, they need to obtain the “Registration Form for Foreign Trade Operators” and “Registration Certificate of the Customs Customs Customs Customs Customs Declaration Unit”. Details are as follows:

(1) Registration certificate of the Customs Customs Declaration Unit of the People’s Republic of China

(2) Foreign Trade Operator Record Registration Form

Note: “The Registration Form for the Foreign Trade Manager” does not have a clear and valid period, such as the registration, there is a need to handle changes within 30 days.

Six, peer competition and related transactions

(1) Same industry competition

As of the date of the intention of this prospectus, the company’s controlling shareholder Xintai Investment has not worked with the same, similar business, and there is no peer competition with the company.

As of the date of the intention of this prospectus, the company actually controls Lu Wei, Yang Min has removed the company’s shares and did not engage in any company, and there is no business competition with the company.

As of the date of signing the intention of this prospectus, other companies controlled by the company TEDA investment, Taiwen Investment except for the company’s shares, did not engage in any company, similar, similar business, with the company does not have peer competition.

(2) Association transactions

1, regularly related transactions

During the reporting period, the company and the related party recurrent partial transactions are summarized as follows:

Unit: 10,000 yuan

(1) Associated sales

During the reporting period, the relevant sales of the company and related parties as follows:

1) Sales of clothing, fabrics, etc. to Nantong Dadong

In 2018, in 2019, Nantong Dadong’s own business needs to purchase overalls, round neck cultural shirts, etc., the transaction amount is 226,500 yuan, 0.23 million yuan, transaction price reference market price negotiation, pricing fair reasonable, transaction amount Smaller, accounting for the lower specificity of the company’s operating income, which has little impact on the company’s operating performance.

In 2019, Nantong Dadong Due to the procurement of 136,000 yuan due to the intervivitary demand, the transaction price reference market price is determined, the pricing is fair and reasonable, the amount of transaction is small, the proportion of the company’s operating income is low, the company’s operating results Small.

In 2018, the company soldd goods to Nantong Dadong, 2.26,500 yuan, is a well-made in Nantong Dadong. The company is mainly engaged in the production and sales of knitted garments. Nantong Dadong has developed a group of overalls from the company, and the company is based on the cost of similar product costs and processing sales, the sales amount, quantity, unit price and gross profit margin of these work clothes. details as following:

The company has customized the product to Nantong Dadong, there is no third party comparable price. From the perspective of sales of hair interest rates, the company’s Workwear gross profit margin to Nantong Dadong is slightly lower than the overall garment sales gross profit margin, the main system is relatively low, the shareholding cost is relatively high, the transaction price is fair, reasonable, There is no situation in which interest is delivered.

2) Selling clothing to Nantong Rising

Nantong Rising Department Nantong Dadong Dadong, 2018, Nantong Rising due to its own business needs to purchase work clothes to the company, the transaction amount is 0.45 million yuan, the transaction price reference market price negotiation, pricing fair reasonable, small transaction amount, accounting for the company The proportion of business income is low, which has little impact on the company’s operating performance.

3) Sales fabric to Nantong Yingqing

Nantong Yingqing’s main business is producing and selling underwear. In 2018, Nantong Yingqing Qingqing’s production business needs to purchase a small number of knitted fabrics to the company for production and processing, the transaction amount is 70,100 yuan, the transaction price reference market price negotiation determined, priced The fair reasonable, the amount of transaction is small, accounting for the lowest proportion of the company’s business income, which has little impact on the company’s operating performance.

(2) Associated procurement

Nantong Dadong’s main business is produced and sells home towels. In 2018 – 2020, the company is used to purchase towels to Nantong Dadong to distribute employee benefits. The transaction amount is 12,500 yuan, 16.2 million yuan and 0.6 million respectively. Yuan, the transaction price reference market price negotiation determined, the pricing fair reasonable, the transaction amount is small, accounting for the lower proportion of the company’s business cost, which has little impact on the company’s operating results.

2, occasional association transaction

(1) Receive payment

In 2020, the company’s financial director Tian Fenghong did not complete the application due to the company at the time of the company, and the receipt of the goods will be 28,300 yuan.

(2) Public welfare donation

In 2020, the company donated 50,000 yuan to Nantong Thai Music Foundation.

(3) generation mat pay

2018 – 2020, Nantong Tai Musa Love Foundation is required to entrust the company’s batch of 149 million yuan due to public welfare activities, 53,400 yuan and 0.04 million yuan.

(4) Other

In 2019, the company’s chairman of the company purchased a $ 0.3 million clothing to the company from the individual reasons.

3, the association should receive the payment amount

During the reporting period, the amount of payables for the company and related parties was as follows:

4. Key management staff salary

Note: The above-mentioned key management personnel compensation system reporting period, the directors, supervisors, and senior management personnel obtained the pay amount in the corresponding year.

Seven, directors, supervisors, senior management

(1) Directors, supervisors, senior management resume

1. Board of Directors

The company’s board of directors set up 5 directors, including 2 independent directors. The directors are as follows:

Mr. Lu Wei, born in August 1962, Chinese nationality, no foreign permanent residency, college degree, senior economist, Nantong City 14th, 15th People’s Congress, Jiangsu Province Textile and Apparel Excellent Entrepreneur. From 1980 to 1992, in the real canads of Rugao food cans, 1992 to 2019, the minister, deputy general manager, general manager, and chairman, chairman, and chairman. The chairman of the company, the directors of Lu’an Knittelling, the Chairman of New Thai Investment, General Manager, TEDA Investment Executive Affairs Partner and other positions. It is the term of office for the chairman of the company to end October 29, 2022, 2019.

Ms. Yang Min, born in June 1967, Chinese nationality, no permanent residency, college degree, senior economist, Chinese Communist Party 13th Congress, Jiangsu Province, March 8 Red Flag. From 1988 to 1993, he served as the director of Rugao Dyeing Factory. And the party branch secretary, the general manager, the general manager, the exhibition, general manager, general manager, Lu’an knitting directors, general manager, new Thai investment directors, stationary investment executive partner, Nantong Tai Musa Love Foundation Director Long and other positions. It is the term of office for the company’s directors to end October 29, 2019 to October 29, 2022.

Mr. Gao Jun, born in January 1965, Chinese nationality, no foreign permanent residency, college degree, senior economist, representative of the 12th People’s Congress of Jiangsu Province, National Textile Industry Work Model. From 1981 to 1986, he served as a total worker in the Dongxian cotton web, from 1987 to 2019. Chairman. Directors, Lu’an Knitting Director, Xintai Investment Director, Shanghai Tongyu Industrial Co., Ltd. Executive Director, Chairman of Jiangsu Azhen Home Development Co., Ltd., Shanghai Xing Zhen Industrial Development Co., Ltd. Director, Shanghai Xingtang Industrial Development Co., Ltd. Director , Jiangsu Xingyu Industrial Development Co., Ltd. Director, Nantong Xingyu Industrial Development Co., Ltd. Director, Deputy General Manager of Nantong Dashi Co., Ltd. Nantong Dadong Co., Ltd. Chairman of Shanghai Shangbaijia Textile Co., Ltd. General Manager, Vietnam Dadong Co., Ltd. It is the term of office for the company’s directors to end October 29, 2019 to October 29, 2022.

Mr. Cai Weihua, born in October 1980, Chinese nationality, no permanent residency, master degree, registered accountant. From 2000 to 2003, he served as a project manager of Nanjing Sanlian Certified Public Accountants. To 2018, we worked at the Tesheng Accountant, 2018 to the present auditing partner of Zhongtian Gaoshu. The independent director of the company, Jiangsu Ligen Industrial Co., Ltd. Independent Director, Nanjing Wei Si Medical Technology Co., Ltd. Independent Director, etc., its directors of the company are October 2019 From 30 days to 29 October 29, 2022.

Mr. Fu Yu, born in January 1974, Chinese nationality, no permanent residency, master’s degree. From 1995 to 1997, he served as a staff member of China Ping An Insurance Company, from 1998 to 1999, Zhejiang University of Political Federation Law Firm. He is currently a partner of Zhejiang Tiansku Law Firm, Director of the Department of Financial Securities, Independent Director, Zhejiang Wansheng Co., Ltd. Independent Director, Independent Director of Wanlong Optoelectronics Equipment Co., Ltd. , Zhejiang Jun and Technology Co., Ltd. Independent Director, etc. It is the term of office for the company’s directors to end October 29, 2019 to October 29, 2022.

2, member of the board of supervisors

There are 3 supervisors in the company’s board of supervisors, and the resume is as follows:

Mr. Guaida, born in July 1978, Chinese nationality, no permanent residency, secondary school degree. From 1997 to 2019, Rhettail Mushe Co., Ltd., Director, Director of Boating Dynamics, etc. end.

Ms. Wang Min, born in May 1971, Chinese nationality, no permanent residency, college degree. From 1989 to 2000, he served as a cost accounting of Li’an Needle Factory. The company’s supervisor is terminated from October 30, 2019 to October 29, 2022.

Ms. Cai Meifang, born in September 1971, Chinese nationality, no permanent residency, undergraduate degree. From 1994 to 2000, he served as the Workmanship, 2000 to 2019, Rentai Mushe Limited Inspection, Laboratory Director, Minister of Quality, Minister of Laboratory, etc. It is the term of office for the company’s supervisor to end October 29, 2022, 2019.

3, senior management

Ms. Yang Min, general manager of the company, resume, see “1, board member”.

Mr. Tian Fenghong, deputy general manager of the company, financial director, born in September 1968, Chinese nationality, no permanent residency, college degree. From 1989 to 1996, he served as a total account of Rugao City Coal Mining. .

Ms. Chen Jing, deputy general manager of the company, born in November 1981, Chinese nationality, no permanent residency, college degree. From 1999 to 2019, Rentai Mushe Limited Quality, Garment Square, Director, Director of Garment Directions, Ministers of Garment Production, General Manager Assistant, etc., is currently the deputy general manager of the company.

Ms. Wang Xia Xia, the company’s board secretary, born in March 1982, Chinese nationality, no permanent residency, undergraduate degree. From 2003 to 2019, Rentai Mushe is limited, tax accounting, property control accounting, sales accounting, Finance Department’s Comprehensive Group, is currently the company’s board secretary.

(2) Directors, supervisors, senior management staff hold company shares

1, directly hold company shares

During the reporting period, the company’s directors, supervisors and senior management personnel directly held the company’s shares as follows:

2, indirect holding company shares

During the reporting period, the company’s directors, supervisors, and senior management personnel indirectly hold the company’s shares as follows:

(3) Remuneration of directors, supervisors, senior management personnel

2020, the company’s directors, supervisors, and senior executives received in the company are as follows:

Note 1: Peng Yanjun no longer serves as the company’s financial officer and the secretary of the board of directors from August 2020.

(4) Part-time situation of directors, supervisors and senior management

As of the date of signing the intention of this prospectus, the part-time management of the company’s directors, supervisors and senior management:

8. Summary of the issuer’s controlling shareholder and its actual controller

(1) Summary of the controlling shareholders

New Thai investment directly holds 60.00% of the company, the company’s controlling shareholder, its brief situation is as follows:

(2) Summary of actual controller

Lu Wei, Yang Min directly holds 13.50%, 13.50% stake, in addition, Lu Wei, Yang Min controls 60.00% voting rights through Xintai Investment Indirect Control Company, Lu Wei passed TEDA Investment Indirect Control Company 5.00% voting rights, Yang Min passes Taihang Investment Indirect Control Company 5.00% Voting Right, Lu Wei, Yang Meitu Control Company 97.00% voting rights, for the company’s actual controller, its brief summary:

Unit: 10,000 yuan

Unit: 10,000 yuan

Unit: 10,000 yuan

Mr. Lu Wei, born in 1962, Chinese nationality, no foreign permanent residency, ID card number: 3206221962 *******, residence in Jiangsu Province.

Ms. Yang Min, born in 1967, Chinese nationality, no overseas permanent residency, ID card number: 3206221967 *******, residence Jiangsu Rugao City.

In order to ensure the stability of the company, Lu Wei and Yang Min have signed a consistent action agreement. The main terms of the agreement are as follows: First, the two parties agree that in the company’s business management decision-making and other matters, maintain consistent action, two sides or nominated by both parties The Directors will make a completely consistent vote in the shareholders’ meeting and the board of directors; two, the two parties agree that the company’s shareholders who have direct or indirectly controlled by both parties will maintain the consistency of voting when the company’s shareholder will review the vote on any matter. Third, the two parties agree that the directors nominated by both parties and both parties must maintain the consistency of the voting on the company’s board of directors for consideration voting on any matter. Fourth, the consistency of the actors meeting, the directors of the company share, both parties, both parties, direct or indirectly controlled by the two sides of the meeting, to agree, oppose or waive the voting opinion on the matters listed in the meeting notice, and with the two sides, The voting opinion held by the company’s shareholders or the nominations of the company’s shareholders or the nominations of the two sides, and the votes held by both parties as the common voting opinions; in the case of the voting right of various votes, the voting opinion held by Yang Min is a common vote Opinions; V. For any disputes related to or consistent action agreements, both sides should have worked hard to negotiate solve, if they cannot be negotiated, they can sign a lawsuit with the consistent action agreement. In addition to controversy or obligation of litigation, both parties of the agreement should continue to fulfill other obligations set out in accordance with the agreement of the agreement during the proceedings.

Consistent Action Agreement agreed to exercise the decision-making mechanism of the shares as follows: Received the company’s conference on the date of the meeting of the shareholder meeting or the board of directors, was convened by Lu Wei with a live or communication method and convened a consistent active meeting, both parties, both parties Or indirectly controlled company shareholders or two directors of the board of directors that agree, oppose or abstain votes on matters in conference notices, and with a voting right of the company’s shareholders or both parties directly or indirectly controlled by both parties. Half of the above votes as a common voting opinion of both parties; if the voting right of various voters is equal, the votes of Yang Min are common votes. In view of this, when the opinion is different, the voting opinion of the voting right of Lu Wei and Yang Min directly or indirectly controlled the voting rights of the directors nominated by the two sides, if the voting right is equal, Yang Min’s opinion is subject to the opinion. When a dispute occurs, the relevant disputes can submit the agreement to sign the people’s courts with jurisdiction for dispute resolution.

Lu Wei, Yang Min has reached an agreement on the basis of the company’s major communication in the company in March 2016, in the company’s leading board, shareholder meeting or shareholders meeting, Control the company together.

In March 2016, the actual controller Lu Wei and Yang Min signed the “Consistent Action Agreement”. In view of the original “Consistent Action Agreement”, the actual controller Lu Wei and Yang Min have issued a new “Consistent Action Agreement”. The agreement is valid for 5 years, and the contract validity period will expire, unless any party advances three The written notice of a month is no longer renewed, and the agreement is automatically renewed for 5 years.

Nine, financial accounting information and management discussions and analysis

(1) Brief financial statement

1, briefly consolidate the balance sheet

Unit: 10,000 yuan

2, brief merger profitable form

3, briefly consolidate cash flow table

(2) non-recurring profit or loss

During the reporting period, the company’s non-regular profit or loss as shown in the following table:

(3) Main financial indicators

(4) Management Discussion and Analysis

1. Analysis of financial status

At the end of the reporting period, the company’s total assets was $ 49,556.02 million, 50,060,07 million, 53,91,07,400 yuan and 584.8347 million yuan. Among them, the proportion of liquid assets accounted for 74.10%, 68.36%, 68.76%, 68.67%, respectively, mainly consisting of monetary funds, accounts receivable, inventory, etc., non-flow assets, accounting for 25.90% of total assets, respectively. 31.64%, 31.24% and 31.33%, mainly consisting of fixed assets, construction, intangible assets, and the like.

At the end of the reporting period, the company’s main assets and changes were shown below:

2, profitability analysis

During the reporting period, the company’s operating income composition is shown in the following table:

During the reporting period, the company’s main business income was 75,1894,700 yuan, 78,059,800 yuan, 68,90.95 million yuan and 4211.574 million yuan, accounting for 99.62%, 99.58%, 99.36%, 99.75%, respectively, company main business protrude.

During the reporting period, the company’s gross profit constitution was shown in the following table:

During the reporting period, the company’s main business gross profit was 17,690.93 million yuan, 18,3424,900 yuan, $ 15,6802,400,000 and 90.896 million, accounting for 98.85%, 98.87%, 97.88% and 99.02%, respectively, respectively, respectively. Among them, the woven garment gross profit is 17,402,600 yuan, 17,66.28 million yuan, $ 15,311.28 million and 87.865 million, accounting for 95.77%, 95.21%, 95.58%, 95.81%, respectively, and 95.81%, respectively, and knitted garment system gross profit. source.

During the reporting period, the company’s gross profit constitution and gross profit margin were as follows:

During the reporting period, the company’s comprehensive gross profit margin was 23.71%, 23.44%, 23.10% and 21.72%, and the overall remained stable.

3, cash flow analysis

During the reporting period, the company’s cash flow is as follows:

During the reporting period, the company’s cash flow main data change is shown in the figure below:

4. Factors affecting the financial situation and profitability of the company in the future

With the improvement of residents ‘consumption, the increase in fitness exercise, the continued development of large-scale sports events, the enthusiasm of my country’s residents’ participation in sports activities continued to improve, and sports have gradually become the rigid demand of people, thereby driving the sportswear industry. Rapid growth. In addition, from the perspective of development, my country’s children’s apparel industry has faster growth, and the segmentation needs begins. Consumers have begun to be driven by various factors such as brands and quality. The children’s apparel industry is still growing rapidly.

With the longitudinal integration advantage, process and technical advantages, management and cultural advantages, etc. . In the future, the company will still focus on the field of knitted clothing, actively develop new customers and new products, continue to maintain and strive to improve the status in the industry. The completion of the fund investment project will further promote the growth of the company’s operating income and further enhance the company’s profitability.

(5) dividend distribution policy

1, dividend allocation general policy

The company’s stocks are all ordinary stocks, each shares enjoy the same equity, and implement the same distribution policy of the same stock, and distribute stocks according to the proportion of shares held by each shareholder.

2, reporting period dividend distribution

On June 28, 2019, the Thai Musshi Limited Shareholders will resolve, allocate $ 6,000,000.

In addition to the above dividends, the company has no other dividend distribution in the past three years.

3. Arrangement of survival before issuance

According to the resolution of the 2020 second temporary shareholders meeting in October 2020: If the company’s stock is approved by the China Securities Regulatory Commission, the company’s first public issuance of the stock has not allocated profit from the new and old shareholders after the release of the new and old shareholders according to the shareholding Scale share.

(6) Basic situation of issuer holding subsidiaries

As of June 30, 2021, the company has a wholly-owned subsidiary of Lu’an Knitting, and the basic situation is as follows:

Section IV Raise Fund Application

According to the resolutions of the second temporary shareholders meeting in 2020, the company intended to publicly issued the RMB ordinary shares, the number of issued is not more than 2,66666,700 sharing. Total fundraising will be determined according to market conditions and inquiry. After the issuance of the funds raised by the first public issued stock, it will be based on the following items under the next project:

I. Lu’an Yingrui Knitting Co., Ltd. relocation and renovation project

The total investment of the project is 36,4007 million yuan, and the construction period is 24 months. This project is intended to have a new automation level of automation in the Chengbei Industrial Park in Lu’an Jinan Development Zone. Through new production plant and supporting facilities, advanced automation equipment meet the needs of the company’s expansion capacity. After the completion of this project, the new needle fabric can be added 8,000 tons / year.

According to the feasibility study report, under the premise of expectations of economic factors and feasibility study, economic benefits evaluation index measures results are as follows:

Second, Yingrui Kitwear Phase II Project

The total investment of the project is 141.64 million yuan, the construction period is 12 months. This project is intended to build a new costume manufacturing plant in the Chengbei Industrial Park in Lu’an Jinan Development Zone, and purchase advanced equipment to meet the needs of the company’s expansion capacity through new production plants and supporting equipment. After the completion of this project, the newly added knitted garment capacity is 10 million / year.

Third, repaying bank loans and supplementary liquidity projects

The company intends to use 100,000 million yuan in this fundraising to repay bank loans and supplementary liquidity, and meet the company’s daily production and operation, enhance the company’s financial strength.

Section 5 Risk factors and other important matters

I. Risk factors

(1) Market competition exacerbated risks

The company is mainly well-known domestic and foreign clothing brand, the company has established strategic cooperative relations with Decathlon, Sen Ma clothing, Brabara brand with leading fabric development capabilities, stable product quality and scale production capacity, and Quiksilver, Kappa, etc. Brand companies have established long-term cooperative relations. If other companies have gradually entered the industry, or the original enterprises in the industry increase product development and market development efforts will increase the market competition in the industry. If the company will not adapt to market changes in product development, customer expansion, etc., the market competitive risk will exacerbate.

(2) International Trade Policy Risk

During the reporting period, the company’s export income was 274,40.03 million yuan, 30,4621,300 yuan, 246.75 million yuan, and 1283.988 million, accounting for 36.45%, 38.65%, 35.19%, and 30.49%, respectively, the ratio of the main business income, respectively. The company mainly exports customers, Decathlon, the company exported to Decathlon is mainly sold in Europe. During the reporting period, the European region did not happen trade friction against the company’s knitted garment products. If there is a major adverse change in the import policy in Europe, or my country’s major trade friction or disputes in China will affect the sales of the company’s products in Europe, thereby adversely affecting the company’s business performance.

(3) Exchange rate fluctuation risk

During the reporting period, the company’s export income amount was 274.040,000 yuan, 30,462.13 million yuan, 246.75 million yuan, and 128.882 million yuan, of which the proportion of Decathlon’s export revenue was 85.83%, 86.36%, 85.24% and 87.53%, which mainly customer. In 2019, the company and Decathlon’s settlement method were adjusted to RMB settlement, and exchange rate fluctuations had little impact on the company’s operating performance. If the company further expands the business of foreign currency settlement with US dollars, euros, will face the risk of exchange rate fluctuations.

(4) Product quality control risks

The company’s main customers have a stricter quality standard for the composition, shrinkage rate and color fastness of the clothing fabric. The company always attaches great importance to product quality control. During the reporting period, the company has good cooperation with major customers, no large-scale return or quality disputes. If the company cannot control the quality of product quality, there will be a problem with the quality of the company’s product quality and will adversely affect the current operating performance and subsequent market development.

(5) Inventory management risks

As a longitudinal integrated garment manufacturer, inventory management is an important part of the company’s daily operations. At the end of the reporting period, the company’s inventory book value was 1352.286 million yuan, 133.327 million yuan, 1375.64 million yuan, and 13.756 million yuan, accounting for 27.29%, 26.59%, 25.52%, and 23.26%, respectively, respectively. The company adopts the production model of sales production, and the company will also consider the changes in market market, customer orders, etc. It will still face the ignition of inventory, bear the risk of a certain amount of inventory depreciation, which will have a certain negative impact on the company’s normal operation. In addition, if the company’s inventory daily management occurs, there may be risks such as inventory damage, loss, etc., leading to the company’s business loss, which will also have a negative impact on the company’s normal operation.

(6) Recycling risk receivable

At the end of the reporting period, the company’s receivable book value was $ 15 and 11.75.71 million, $ 14,7865,200, 132.11.19 million yuan, and 161.9248 million, accounting for 20.03%, 18.68%, 19.08% and 38.35%, respectively. If the macroeconomic, industry status, or customer’s own business conditions have caused significant changes in the financial position of major customers, the company’s accounts will have the actual bad debt loss, which will have adverse effects on the company’s operating performance.

Unit: 10,000 yuan

Unit: 10,000 yuan

Unit: 10,000 yuan

Unit: 10,000 yuan

Unit: 10,000 yuan

Unit: 10,000 yuan

Unit: 10,000 yuan

(7) Income Tax Policy Change Risk

The parent company Termish was recognized as a high-tech enterprise in November 2016, and in November 2019, he re-identified high-tech enterprises in November 2019. It implemented 15% of corporate income tax rates during the reporting period, and Li’an knitted 25% of the subsidiary Enterprise income tax rate. During the reporting period, the company’s corporate income tax concessions were 95.442 million yuan, 8102,400 yuan, 6.17.4 million yuan and 38.583 million, accounting for 8.39%, 7.64%, 6.54% and 7.29%, respectively. If the state’s tax preferential policy of high-tech enterprises has changed, or the company cannot reassure through high-tech enterprises in high-tech enterprises, the company’s income tax rate may increase, will have adverse effects on the company’s operating performance.

(8) Risk of changes in export tax rebate policies

The company’s export product executes VAT export tax rebate policies. From January 2018 to April 2018, May 2018, March 2019, in April 2019, the company’s products applicable value-added tax rates are 17%, 16%, 13%, and the export tax rebate rate applicable to the company’s products. It is 17%, 16%, 13%. If the country’s export tax rebate policy has been adjusted, the company’s main commodity export tax rebate rate will have a large impact on the company’s operating performance.

(9) Technology R & D Risk

The company has always adhered to independent research and development and technological innovation, and continuously improves process technology. With the intensification and development of industry competition, the technical level is constantly increasing. If the company does not maintain sustained innovation, grasp the technology development trend of adapting to market demand, or due to competitor technology research leads to the formation of technical barriers to the company, will weaken the company The core competitiveness has adversely affects the company’s business development.

(10) The risk of technical personnel

After years of development and accumulation, the company’s R & D team has a profound professional background and rich industry application experience, which provides strong support for the company’s continuous promotion technological innovation and product upgrading. With the intention of talents in the industry, if the company cannot adopt competitive incentives, it will lead to the loss of core technicians, thereby adversely affecting the company’s technology research and development and market competition.

(11) Production capacity digestion risk

During the reporting period, the company’s capacity utilization is always at a high level, and the overall capacity of the company is more tense. After the company’s raised fund investment project, the company’s knitted fabric and kinning garment capacity will increase. The company is based on its own development strategy, comprehensively considering factors such as their own position and management capabilities, and investment projects that are expected to change significantly from major changes in the future macroeconomic and market environment. However, if the market size growth in the relevant products is not expected, or the company’s product sales is uneven, the company will face product sales cannot achieve the expected goal, and production capacity cannot fully digest the risk.

(12) Business management risks

After the stock issuance of this stock, the company’s asset size, business scale, etc. will be further expanded, and the company’s strategic planning, internal control, operation management, financial management, etc., the company’s business activities , Organizational architecture and management systems will also tend to be complicated. If the company cannot promptly adjust and optimize the management system in a timely manner, the company will face certain business management risks.

(13) Net asset yields have fallen risks

After the issuance of this stock is completed, the company’s net assets will increase significantly, but due to the raised fund investment project has certain construction and operation processes from investment to generating benefits, its economic benefits gradually appear over time, and the benefits of the project are expected to have a certain Uncertainty, it is expected that the company’s net profit growth will be less than the net asset growth rate, that is, the risk of the net asset yield after the release of the company has fallen.

(14) A new depreciation or amortization of fundraising projects

This fundraising project is the second phase of the relocation and costume project. The total investment of the two fixed assets is 360.297 million yuan. With the gradual completion of fixed asset investment, the company’s fixed assets will have a large expansion, fixed assets Depreciation will also increase accordingly. After the establishment of funds investment projects, it is expected that the annual new fixed assets depreciation and intangible asset amortization amount is approximately $ 280.4 million. Although the fundraising project is expected to be good, if there is adverse changes due to poor management or downstream market, the company has the risk of fell significantly due to depreciation and amortization costs.

Second, other important matters

(1) Important Contract

1, credit contract

As of the date of signing of the intention of this prospectus, the credit contracts that the company is performing is as follows:

(1) January 24, 2019, the company signed a “cycle borrowing contract” and Jiangsu Rugu Rural Commercial Bank Co., Ltd. (contract number: 商 银 (2019) No. 0124205301), agreed Jiangsu Rugao Rural Commercial Bank Co., Ltd. Provide the company with an 80,000 yuan of liquid borrowings, the period is January 24, 2019 to January 23, 2022.

(2) On July 5, 2021, the company and China Merchants Bank Co., Ltd. Nantong Branch signed a “credit agreement” (contract number: 513xy2021019036) From June 18, 2022, June 17, 2022.

2, loan contract

As of the date of signing the intention of this prospectus, the company is performing the loan contract:

On December 22, 2020, the company and Jiangsu Bank Co., Ltd. signed a “liquid borrowing contract” (contract number: JK053320001919), to Jiangsu Bank Co., Ltd. Rugao branch of Rugao Branch, borrowing, RMB 202, December 2020 From 22 to 202, December 21, 22: April 14,000 yuan in April 14, 2021.

3, sales contract

The company’s major customers are usually signing a framework agreement with the company, and in the purchase order, the specific name, model, quantity, amount, delivery location, and delivery period are more in the purchase order, and the number of orders is smaller. . As of the date of signing the intention of this prospectus, the company is performing more than 5 million yuan or more sales contracts with significant impact on production and operation activities:

4, procurement contract

The company usually signs a framework agreement with major suppliers, and purchases raw materials to suppliers in order form, and the number of orders is smaller. As of the date of signing the intention of this prospectus, the company is performing more than 5 million yuan or more procurement contracts with significant impact on their production and operation activities:

5, engineering contract

As of the date of signing of the letter of mind, the company is performing the main engineering contracts as follows:

On July 30, 2021, the company’s subsidiary Lu’an Knitting and Anhui Tiancheng Construction Co., Ltd. signed “Construction Engineering Construction Contract”, agreed Anhui Tiancheng Construction Co., Ltd. Continued Anhui Tiancheng Construction Co., Ltd. Continuous D Ding Treatment Workshop Project 440 days of project construction period, the contract price is 36.38 million yuan.

(2) the company’s external guarantee situation

As of the date of signing the intention of this prospectus, the company has no external guarantee.

(3) Related Litigation or Arbitration

1. The company’s major litigation and arbitration

As of the date of signing the intention of this prospectus, the company does not have a major litigation or arbitration of financial status, operating results, reputation, business activities, future prospects, etc..

2. Major lawsuits and arbitrations of mainly related people and core technicians

As of the date of signing of the intention of this prospectus, the company’s major shareholders, controlled subsidiaries, directors, supervisors, senior management personnel, and core technicians do not exist as a major litigation or arbitration of the parties.

3, directors, supervisors, senior management personnel and core technical personnel criminal proceedings

As of the Summary of this prospectus, the company’s directors, supervisors, senior management and core technicians do not have a criminal proceedings.

Section 6 This issue of the parties and time schedules

First, the situation of the parties to all parties

Second, the important date of the listing of this issue

Section 7 Reference Document

First, check the time

During the company’s prospectong, investors can check the full text, return documents and accessories of the company or sponsor (the main underwriter), and the review time is 9: 00-11: 00 am, 2:30 pm every Monday to Friday. -4: 30.

Second, the reserve file consultation place, phone, contact

(1) Jiangsu Taichi Textile Technology Co., Ltd.

Address: No. 666, Yishou Road, Renshou Road, Chengbei Street, Rugao City

Contact number: 0513-87770989

Fax: 0513-87505566

Contact: Wang Xia

(2) Huatai United Securities Co., Ltd.

Address: 4th Floor, Building 1, Huatai Securities Square, No. 228 Jiangdong Middle Road, Jianye District, Jiangsu, China

Tel: 025-83388070

Fax: 025-83387711

Contact: Li Zonggui

Jiangsu Taichi Textile Technology Co., Ltd.

November 30, 2021