Build A Non-Woven Production Line? Qixin Shares Were Questioned: Whether Insider Trading Or Manipulating The Market?

In April 17th, we were informed that 002781.SZ received the letter from the Shenzhen Stock Exchange.

In April 16, 2020, the company disclosed the announcement on the establishment of Sun company and invested in the construction of melt blown nonwoven production line. The Foshan subsidiary KELONG KELONG Mstar Technology Ltd (hereinafter referred to as "KELONG in Foshan") intends to set up a wholly-owned subsidiary of KELONG Mstar Technology Ltd in China, investing 35 million yuan in the melt blown non-woven production line project.

The Shenzhen Stock Exchange said it was concerned about this and asked the company to verify and explain the following questions:

1, combined with the market production and marketing situation, the competition pattern, the industry trend and the advantages of the company, the specific reasons for the company to invest in the construction of melt blown nonwoven production line are explained.

2, combined with the research and development input, the composition of scientific research personnel, the patent technology and the competitor status of KELONG ocean in Foshan KELONG ocean, the quantitative analysis of the basis and reasonableness of KELONG's leading position in China is made.

3, the above production line of melt blown nonwoven production line has not been reconstructed and has not yet purchased raw materials, no melt blown nonwoven fabrics are in hand orders, and no cooperative relationship has been established. However, the company expects to achieve annual operating income of RMB 90 million yuan and achieve net profit of 22 million yuan per year after the project is concluded.

Explain the specific basis for making the above profit forecasts, whether the relevant forecasts are prudent and reasonable, and fully indicate the relevant risks.

4, it shows that the controlling shareholder, the actual controller, Dong Jiangao and his concerted persons in the three months before the issuance of the letter and the stock market in the next three months will have plans to increase or decrease the amount of insider trading and manipulate the market.

5, the company considers that other matters should be explained.