Securities code: Shanxi Huayang New Materialco.Ltd(600281) stock abbreviation: Shanxi Huayang New Materialco.Ltd(600281) No.: Lin 2022014 Shanxi Huayang New Materialco.Ltd(600281)
Announcement on the company’s outstanding losses exceeding one third of the total paid in share capital
The board of directors and all members of the board of directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Shanxi Huayang New Materialco.Ltd(600281) (hereinafter referred to as “the company”) held the third meeting of the seventh board of directors in 2022 on April 18, 2022, deliberated and adopted the proposal on the company’s outstanding losses exceeding one third of the total paid in share capital. The specific situation is hereby announced as follows:
1、 Overview of the situation
As of December 31, 2021, the company’s audited consolidated financial statements had an outstanding loss of -665265700 yuan, the company’s paid in share capital was 514402500 yuan, and the company’s outstanding loss exceeded one-third of the total paid in share capital.
2、 Reasons for performance loss
Since 2011, according to the requirements of Shanxi Province to improve the environmental quality of the provincial capital and the comprehensive improvement of Xishan area, the company has successively shut down its main production enterprises. The company’s main business has shrunk significantly, and its profitability has been greatly affected, resulting in a large amount of outstanding losses in previous years.
In 2021, the operating condition of the company’s main business was basically normal and its profitability improved. However, according to the accounting standards for business enterprises and the company’s asset status, the company accrued an impairment provision of 349121 million yuan and recognized a loss of 182502 million yuan from changes in fair value. Affected by the above factors, the company realized a net profit attributable to shareholders of listed companies of -447252 million yuan in 2021, and the company’s unrecovered loss reached -662548 million yuan.
3、 Measures to be taken
1. In 2022, the “60000 T / a PBAT project for new materials”, “20000 t / a biodegradable modified materials and plastic products project” and “20000 t / a full range of biodegradable new materials project” invested and constructed by the company will be put into operation. The company’s real industry will be further consolidated and its business performance is expected to be improved.
2. Make full use of the company’s quality, brand and other advantages in the field of precious metal processing and utilization. On the basis of consolidating and improving existing customers, make full use of existing production capacity, open up new markets, deeply tap potential, and carry out technical transformation on key links such as purification and refining of existing production lines to improve market competitiveness.
3. Optimize the company’s internal control process, refine internal management measures and innovate management means. Strictly implement the comprehensive budget management system and control the expenditure of non productive expenses. Strengthen the investment management of new projects and control the project investment in strict accordance with the budget estimate. Target advanced enterprises in the industry and actively explore means to improve quality and efficiency. Fully promote the non-public offering of shares and reduce the financing cost of the company’s project construction. Standardize corporate governance and improve the level of internal control management.
Through the implementation of the above measures, the profitability of the company is expected to be improved, and the outstanding losses will be gradually reduced. This matter still needs to be submitted to the general meeting of shareholders of the company for deliberation.
It is hereby announced
Shanxi Huayang New Materialco.Ltd(600281) board of directors April 20, 2022
