Annual Report 2019

35 年報 ANNUAL REPORT 2019 MANAGEMENT DISCUSSION AND ANALYSIS 管理層論述及分析 於本年度，滕州東方與滕州相關政府機關就 將在該等土地上進行的項目投資建設訂立協 議。根據協議，滕州東方將在該等土地投資建 設總年產 100,000 噸鋼簾線生產線（其中建設 年產量 20,000 噸黃絲（鋼簾線半成品或在製 品）生產線是不可分割的一部分）。 在二零一九年八月，滕州東方收到由滕州市自 然資源局就該等土地的土地使用權證。滕州政 府機關協助滕州東方建設項目，如處理施工相 關程序，促進水、電、道路等項目基礎設施建 設，並協助申請政府政策支持和適用的資金支 持。 建設項目已於二零一九年十一月開始購置機 器及建設的廠房、附屬設施及外圍道路，並由 二零一九年二月十一日發行的可換股債券所 得款、內部資源及╱或其他融資提供資金。項 目會根據市場情況和本公司不時之財務能力 分階段進行。上述黃絲項目將預計對鋼簾線分 部的表現帶來正面影響，因目前若干嘉興東方 黃絲生產線已使用超過二十多年，相對較低的 生產效率及質量不穩定性，產生高維護費和運 營成本。 During the year, TESC has entered into agreements with the relevant governmental authorities of Tengzhou in relation to the investment of a construction project to be carried out on the Lands. Pursuant to the agreements, TESC shall invest in construction of the production lines for an annual capacity of 100,000 tonnes Steel cords (of which the construction project of production lines with annual capacity of 20,000 tonnes of brass wires (half-product or work in progress of Steel cords) is an integral part) on the Lands. In August 2019, TESC received the land use right certificates of the Lands from Tengzhou City Natural Resources Bureau. The Tengzhou governmental authorities shall assist TESC in the construction project, such as handling relevant procedures for the construction, facilitating in the construction of infrastructure of the project such as water, electricity and roads, and assisting in application of governmental policy support and applicable support funds. The construction project has commenced to acquire the machineries and constructure the factory plant, ancillary facilities and peripheral roads in November 2019 and is funded by the proceeds of the issuance of Convertible Bonds issued on 11 February 2019, internal resources and/ or other financing. The project is carried out by phases according to the market conditions and the financial capacity of the Company from time to time. The brass wire project as aforementioned is expected to bring positive impact on the performance of the Steel cord segment as some of the existing production of brass wires of JESC, which have been in use for over 20 years, incurs high maintenance and operation cost with relatively low production efficiency and quality instability.