60 Shuyu Civilian Pharmacy Corp.Ltd(301017) announced that the company recently received the reply on approving Zhejiang Wansheng Co.Ltd(603010) non-public offering of shares issued by the China Securities Regulatory Commission, which approved the company’s non-public offering of no more than 104305939 new shares. If the total share capital changes due to the conversion of share capital, the number of shares issued can be adjusted accordingly.
According to Zhejiang Wansheng Co.Ltd(603010) in the investment interaction, after the completion of the fixed increase, Nanjing Iron & Steel Co.Ltd(600282) will become the controlling shareholder of Zhejiang Wansheng Co.Ltd(603010) and will effectively give play to the strategic synergy between the two sides in the fields of energy, environmental protection and new materials, promote the upgrading of the company’s industrial technology, optimize enterprise management, help the company reduce costs and increase efficiency, broaden the company’s business growth space, enhance the company’s innovation ability, enhance the company’s comprehensive competitiveness, and promote the company to become bigger and stronger.
In order to cope with the impact of the recent rise in crude oil prices, Zhejiang Wansheng Co.Ltd(603010) said that the company’s main raw materials propylene oxide, epichlorohydrin, phenol and bisphenol A are downstream products of the petrochemical industry. The market price is transparent, and its price trend has a certain correlation with the fluctuation of International crude oil prices. In order to reduce the impact of raw material price fluctuation on the company’s net profit, the company mainly adopts the business model of setting production by sales. For long-term cooperation orders, the quotation of sales orders is determined according to the corresponding price calculation formula based on the raw material price of ICIS (anxins, international chemical information service network); For market-oriented quotation, lock the price of key raw materials according to the order, product and raw material inventory and market supply, so as to ensure the overall profit level of the company, so as to avoid the risk of long-term fluctuation of raw materials. If the raw materials fluctuate sharply in the short term, the short-term operation of the company may still be affected.
