On December 1, Wansheng Co., Ltd. issued an announcement from Zhejiang Wansheng Co., Ltd. on the adjustment of some fundraising projects and the postponement of fundraising projects.
Project name: Integrated production project of functional new materials with an annual output of 319,300 tons
Adjustments and additional investments in this fundraising project: The original planned total investment of the integrated production project of functional new materials with an annual output of 319,300 tons was 1.6 billion yuan.
It is planned to use 1.3 billion yuan of raised funds. The above-mentioned investment matters have been reviewed and approved by the company’s third extraordinary shareholders’ meeting in 2021. As of September 30, 2023, a total of 1.573 billion yuan of actual construction funds have been invested in the raised investment projects.
Among them, 1.241 billion yuan of raised funds has been invested.
Starting from the first half of 2022, due to geopolitical conflicts, European and American inflation, and the expansion of production capacity in the domestic market, the supply and demand pattern of some products in the integrated production project of functional new materials with an annual output of 319,300 tons has changed.
Big changes have occurred, and product supply exceeds demand, resulting in fierce price competition. The continued implementation of the original investment project construction plan faces many challenges, and it is expected that the expected investment goals will not be achieved in the short term after implementation.
Based on changes in the economic environment and the actual situation of project construction, the company plans to adjust the original project and adjust the annual production capacity of the functional new material integrated production project from 319,300 tons to 202,270 tons (including: green polyurethane flame retardant 7 Ten thousand
tons, 70,000 tons of phosphorus oxychloride, 25,000 tons of green engineering plastic flame retardants, 2,930 tons of high-end epoxy resins and additives, and 34,340 tons of surfactants). The products of the investment projects adjusted this time are mainly high-end epoxy resins and additives and green engineering plastic flame retardants. Due to the significant changes in the market supply and demand relationship of epoxy resin and green engineering plastic flame retardants in the past two years, the market Competition is fierce, and the gross profit of related products has dropped significantly. The company plans to reduce the original 100,000-ton production capacity of high-end epoxy resins and additives to
0.293 million tons. In the original feasibility study report, the corresponding investment for 100,000 tons of high-end epoxy resin and additives was approximately 61.2 million yuan, accounting for 3.83% of the total investment in the original raised investment project. At the same time, it is planned to use the original 5.5 million tons of green engineering plastic flame retardants. The construction scale of 10,000 tons production capacity is reduced to 25,000 tons.
In the original feasibility study report, the corresponding investment for 25,000 tons of green engineering plastic flame retardants was approximately 34.33 million yuan, accounting for 2.15% of the total investment in the original raised investment project.
At the same time, due to the improvement of construction standards of investment projects and changes in some product processes, in order to meet the overall supporting planning of the Weifang production plant project in Shandong and government regulatory requirements, the company has improved the structural design and safety of buildings.
Full coefficients, optimized and adjusted environmental protection facilities, improved workshop automation level, and labor costs during project construction,
The overall increase in material prices has led to a significant increase in the project investment budget. The company needs to make additional investment in this fundraising project and plans to increase the investment scale of the fundraising project to 2.15 billion yuan. After the raised funds have been used,
The shortfall will be met by the company’s own funds. The company will promptly adjust the project investment situation based on subsequent market changes.
Delay of this fundraising project: The date for the products of the fundraising project to reach the intended usable state has been postponed to the fourth quarter of 2024.
The overall situation of the investment projects before and after the adjustment is as follows:
