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China Gaoxian Fibre Fabric Holdings Ltd. Annual General Meeting for FY2011 29 June 2012. Business Update. Challenging operating environment in PRC
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China Gaoxian Fibre Fabric Holdings Ltd. Annual General Meeting for FY2011 29 June 2012
Business Update • Challenging operating environment in PRC • Close to 750 full-time operational staff in the Group who are deployed accordingly to production requirements (from one to three shifts depending on product line) • Competitive industry – Global market • Focusing on higher margin products e.g. Blended Yarn, Warped Knit Fabric • Minimise inventory – reduce inventory carrying costs
Looking Ahead • Operations will continue to operate under challenging business conditions – long-term outlook remains positive • Reduced production volume and focused on the production of higher margin products • relentlessly pursuing various initiatives to boost staff productivity and minimise staff turnover • The Board is committed to work towards Huaxiang Project so as to move to differentiated products with higher premium
The Next Steps... • Finalising the Resumption of Trading Proposal • Steps to Take to Implement the Resumption Proposal Huaxiang Project • Seek shareholders’ ratification of the Huaxiang Project at an EGM to be convened Proposed Investment into the Company • Prepare and conclude definitive agreements with Dymon as currently only a Term Sheet has been signed Improvements to the Company’s Internal Controls • In the process of appointing an independent internal auditor to carry out an independent review of the internal controls
Update on Huaxiang Project • Texturisation Plant • Buildings are at various stages of construction and expect all buildings to be completed by September 2012 and 1st 20 production Lines to be installed by the end of 2012 • Polymerisation Plant • Building is under construction and to begin installation of the production plant by this September and to be operational by the end 1st Quarter of 2013. • Spinning plant • Buildings are at various stages of construction and expect to begin installation of the production lines by 1st Quarter of 2013. • Project Accessories and Employee Village • All accessories are under construction at various stages.
