On the evening of December 7, Mercury Home Textiles announced that it intends to issue convertible bonds to unspecified objects, and intends to raise no more than 101.5 billion yuan will be used for Mercury Home Textile (Nantong) Industrial Base, Mercury E-commerce Park (Intelligent Storage Base) project and supplementary working capital, further grasp the development trend of industrial upgrading, and promote the company's business to further improve and develop.
Mercury Home Textiles said that the company's product demand has always maintained a relatively strong development trend, and it is necessary for the company to comply with the market trend, grasp the development opportunities of the expansion of the consumer industry and the home textile industry and the upgrading of the industrial structure, and consolidate the industry position and continue to maintain competitiveness by expanding the scale of the main business. At present, the company's own capacity utilization rate has become saturated, and the existing capacity scale is difficult to meet its own continuously expanding capacity gap, and it is urgent to expand production to meet the needs of its own business development.
The company believes that the issuance of convertible bonds will take the construction of the production project of Mercury Home Textile (Nantong) Industrial Base as an opportunity to focus on the main product categories of kits, quilt cores and pillow cores, introduce core production equipment, and improve independent supply capacity to meet market demand and the needs of the company's business continued expansion. At the same time, with the further expansion of production scale, the company's existing warehousing capacity has been difficult to meet the growing demand for warehousing and logistics, and it is necessary to increase investment in warehousing and logistics construction and build new intelligent warehousing space.
The home textile industry is one of the traditional pillar industries in China and occupies an indispensable position in the development of the national economy. From the perspective of the competitive landscape, in addition to large-scale enterprises, there are a large number of small and medium-sized enterprises in the home textile industry, fierce competition and serious homogenization, in the context of accelerating the upgrading of the consumer industry structure, no brand or small brand products are facing accelerated elimination, and market resources are further concentrated on a number of outstanding enterprises in the leading position in the industry.
Mercury Home Textile is a leading enterprise in the domestic home textile industry, and continues to focus on the brand strategy of "Mercury is well selected", strengthens the advantages of core categories, creates market segment competitiveness, and drives the development of all categories. In the first three quarters of 2023, the company achieved a total operating income of 275.4 billion yuan, a year-on-year increase of 1025%, net profit attributable to the parent company 25.2 billion yuan, a year-on-year increase of 3809%。
From the perspective of the overall situation, the growth momentum of China's textile industry will slow down in the first half of 2023. According to the data of the National Bureau of Statistics, the total profit of home textile enterprises above designated size increased by 3% year-on-year86%, the profitability of the enterprise has been improved to a certain extent. This also reflects the fact that the home textile industry is still able to maintain stable profitability through internal management and efficiency in the face of external pressure.
In the future, with the improvement of the domestic per capita income level and the change of consumption concepts, home textile enterprises with high brand awareness, strong product research and development capabilities, a wider sales network and strong chain management capabilities will be more able to integrate resources and continue to expand market share, and the industry concentration is expected to continue to increase in the future.
The company said that the raised funds investment project is in line with the national industrial policy and the company's strategic development planning direction, closely related to the company's main business, is an important expansion of the company's home textile product production capacity and storage capacity, and is conducive to the company's further expansion of the main business. With the completion and implementation of the investment project of the raised funds, the company's business scale will be further improved, which will help the company grasp the development opportunities of the expansion and upgrading of the home textile industry, further concentrate superior resources, increase market share and consolidate the leading position in the industry.
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