Securities code: 002001 securities abbreviation: Zhejiang Nhu Company Ltd(002001) Announcement No.: 2021-040 Zhejiang Nhu Company Ltd(002001)
Announcement on foreign investment and signing letter of intent for joint venture and cooperation
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
1、 Overview of foreign investment
At the 9th meeting of the 8th board of directors held on December 24, 2021, Zhejiang Nhu Company Ltd(002001) (hereinafter referred to as "the company" or " Zhejiang Nhu Company Ltd(002001) ") deliberated and approved the proposal on foreign investment and signing the letter of intent for joint venture and cooperation, and agreed that the company and China Petroleum & Chemical Corporation(600028) Zhenhai Refining and chemical branch (hereinafter referred to as "Sinopec") sign the letter of intent for joint venture and cooperation (hereinafter referred to as "the letter of intent") ）, the two sides jointly established a joint venture as the main body of the project to jointly invest in a set of methionine production facilities (hereinafter referred to as the "project"), with a total investment of about 3 billion yuan.
This foreign investment is within the decision-making scope of the board of directors of the company and does not need to be submitted to the general meeting of shareholders of the company for deliberation. According to the stock listing rules of Shenzhen Stock Exchange, this foreign investment does not constitute a related party transaction or a major asset reorganization specified in the administrative measures for major asset reorganization of listed companies.
2、 Basic information of the other party
Enterprise name: China Petroleum & Chemical Corporation(600028) Zhenhai Refining and chemical branch
Place of business: Jiaochuan street, Zhenhai District, Ningbo City, Zhejiang Province (Yu Fan)
Person in charge: Mo Dingge
Enterprise type: other joint stock limited company branch (listed)
Main business: manufacturing petroleum products, basic chemical raw materials, chemical products and special chemical products; Sales of petroleum products, chemical products and special chemical products; Import and export business; Warehousing services; Technical service, technical consultation, etc.
Association relationship: Sinopec has no association relationship with the company.
3、 Main contents of letter of intent for joint venture and cooperation
Zhejiang Nhu Company Ltd(002001) cooperate with Sinopec to invest in a set of methionine production facilities. The total investment of the project is expected to be about 3 billion yuan, which is built in Zhenhai District, Ningbo. Both parties jointly set up a joint venture company as the implementation subject of the project, which is responsible for the production and sales of methionine products. The registered capital of the joint venture company is 30% of the total investment of the project, which is invested in cash. The shareholding ratio of both parties is tentatively determined as 50%: 50%. The joint venture company has a board of directors composed of four directors. Both parties have the right to appoint two directors respectively. The management of the joint venture company is composed of both parties. The signing of this letter of intent by both parties does not mean the establishment of binding and enforceable contract commitments. Both parties will conduct sincere discussion and negotiation on the project based on the terms and conditions of this letter of intent in order to sign a series of binding final agreements.
4、 Purpose of this investment and its impact on the company
1. Purpose of this investment
The investment aims to explore the cooperation between the two sides in resources and technology under the principle of equality, mutual benefit and win-win cooperation. The steady progress of the investment project will be conducive to the further cooperation between the two sides in the field of high-end fine chemicals.
2. Impact of this investment on the company
The letter of intent signed by both parties belongs to the intentional and framework agreement of both parties. The final cooperation terms shall be subject to the formal agreement signed by both parties. This letter of intent does not represent the final cooperation, and there is uncertainty in this matter; At the same time, the project implementation has a certain periodicity, which will not have a significant impact on the company's current business performance, and the impact on the company's long-term operation needs to be determined according to the promotion and implementation of subsequent specific cooperation projects.
For this foreign investment, the company will timely perform the obligation of information disclosure according to the progress. Please pay attention to the investment risks.
5、 Documents for future reference
1. Resolutions of the 9th meeting of the 8th board of directors;
2. Letter of intent for joint venture cooperation.
It is hereby announced.
Zhejiang Nhu Company Ltd(002001) board of directors December 27, 2021
