Preparatory meeting for the syndicate regarding Jinnan Coal Hengsheng’s “40·60” relocation project held

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Preparatory meeting for the syndicate regarding Jinmei Hengsheng’s “40·60” relocation project held Author/Source: Jiangsu Jinmei Hengsheng Chemical Co., Ltd. Date: 2019-10-18 Clicks: 13 On the afternoon of October 10, 2019, a preparatory meeting for the syndicate related to Jinmei Hengsheng’s “40·60” relocation project was held in Xinyi. The theme of the meeting was a bank-enterprise meeting held by banking financial institutions such as the Jiangsu Branch of the Export-Import Bank, together with Hengsheng Company, to discuss the provision of syndicated loans to support the launch of Phase 1 of the project. The heads of the 9 new branches in Xuzhou and Nanjing of the Export-Import Bank of China’s Jiangsu Province branch, as well as those from the local financial regulatory authorities, together with the financial departments of Guangfa Bank, Bank of Communications, Guangzhou Bank, China Construction Bank, Shanghai Pudong Development Bank, and Jiangsu Bank, attended the meeting. Additionally, Xue Zhen, General Manager of Hengsheng Company, Xu Xinming, Financial Director, Wang Jingguang, Deputy General Manager, Tian Houwang, Assistant to the General Manager, and Zhu Lin from the Finance Department also participated. The meeting was chaired by Zhu Shengjin, Director of the Municipal Local Financial Supervision Bureau. At the meeting, Xue Zhen, general manager of Hengsheng Company, first introduced the company’s business performance and financing needs. He said, \"Over the years, with the strong support and assistance of various financial institutions and leaders, we have continued to increase investment in technological upgrades. We have successfully built projects such as one producing 180,000 tons of synthetic ammonia and 300,000 tons of urea, a project producing 200,000 tons of methanol, as well as cogeneration projects. The scale of our company’s assets has exceeded 4 billion yuan, enabling us to achieve annual revenues of 5 billion yuan and profits and taxes of 500 million yuan.\" Through vigorous efforts and key breakthroughs, the company’s project to relocate and upgrade its facilities for an annual production of 400,000 tons of synthetic ammonia and 600,000 tons of urea is about to begin construction, offering huge market potential. The project is planned to cover an area of 950 mu, with a budgeted investment of 3.62 billion yuan. The project will employ the most advanced new coal gasification technologies available domestically and internationally. By ensuring greater safety and environmental sustainability, energy and resource consumption will be significantly reduced. As a result, the product costs will be among the lowest in the industry, leading to a substantial increase in the company’s profitability. We will continue to uphold the traditions of operating in compliance with the law and with integrity, and strive to deliver better results as a way of repaying everyone’s support. We ask for continued strong backing from all our leaders. ” Tian Houwang, the assistant to the general manager of the company, provided a detailed overview covering the company’s profile, equity structure, strengths, transformation efforts, market analysis, an introduction to the parent company Shanxi Jinmei as well as the New Materials Industrial Park, technical details, competitive advantages, project descriptions, sources of funding, and the progress of the projects. Lu Shengqiang, head of the Corporate Department 6 at the Jiangsu Branch of the Export-Import Bank, and the presidents of the participating banks spoke at the meeting. They outlined the tasks involved in the syndicated loan process, expressed their support for the funding needs, agreed to the allocation of funds under the syndicated loan, and indicated their willingness to provide strong support for the project’s development. With the coordination and assistance of the Export-Import Bank, various banks eagerly signed up; groups were formed on the spot, and the atmosphere was enthusiastic. The future economic benefits of the new project were recognized by many bank executives, who provided credit support from the 7 financial institutions present. As a result, the financing amount increased from the originally planned 2.5 billion yuan to 3.45 billion yuan. Zhu Shengjin, director of the Municipal Local Financial Regulatory Bureau, emphasized that Chairman Xue Dongsheng is an outstanding figure in China’s small nitrogen fertilizer industry, who has made significant contributions to the economy of his hometown. His personal charm is highly recognized and respected by the people of his hometown. The Jinmei Hengsheng new project is a major infrastructure project in Xuzhou. Xuzhou and Xinyi city have carried out numerous coordination efforts; the mayor and relevant officials conduct regular supervision, and various environmental impact assessments and capacity announcements are handled in an orderly sequence. New projects are not easy to come by; they require substantial investment and serve as a model for the economic development of Xinyi. This is the pride of our hometown, and we are pleased about it. Xinyi has more large-scale projects that can be replicated; it is hoped that more banks will get involved in these new projects, with dedicated personnel to oversee them and promote the high-quality development of enterprises. This meeting strengthened the partnership between banks and enterprises; it serves as a guarantee for the successful implementation of the “40.60” project and is also a driving force behind Hengsheng’s transformation and development. While providing strong support for the transformation and upgrading of Xinyi City’s chemical industry, it also demonstrates the banks’ commitment to fostering high-quality development in enterprises.