Huafon Chemical plans to invest in the construction of Huafon New Material Application Joint Innovation Center
I. Overview of foreign investment
Huafon Chemical Co., Ltd. (hereinafter referred to as the “Company” or “Huafon Chemical”) held the ninth meeting of the eighth board of directors on September 27, 2022, and reviewed and approved the “Regarding the Proposed Investment and Construction of Huafon New Materials Application”. Joint Innovation Center Proposal”, agreeing that the company’s wholly-owned subsidiary company Zhejiang Huafeng Juchuang Technology Co., Ltd. (hereinafter referred to as “Juchuang Technology”) will invest 850 million yuan (including the purchase of land) in Binjiang Business District, Lucheng District, Wenzhou City. Invest in the construction of the Huafeng New Material Application Joint Innovation Center Project (hereinafter referred to as the “Project”).
According to the “Shenzhen Stock Exchange Listing Rules”, “Articles of Association” and other relevant regulations, there is no need to submit it to the general meeting of shareholders for deliberation. Within the scope of the above investment budget, the company’s board of directors authorizes the company’s management to approve.
The source of funding for this project is self-financing. This foreign investment does not constitute a related party transaction or a major asset reorganization as specified in the Measures for the Administration of Major Asset Restructuring of Listed Companies.
II. Basic information of the investment target
1. Project Name: Huafeng New Material Application Joint Innovation Center
2. Implementer: Zhejiang Huafeng Juchuang Technology Co., Ltd.
3. Project site: Plot D-02, Binjiang Business District, Lucheng District, Wenzhou City (southeast at the intersection of Tangjiaqiao Road and Liming East Road, Tu Village, Binjiang Street, Lucheng District, east to Yiju Road (planned road), south to Business 4th Road ( planning the road)).
4. Project land scale: 6679.9 square meters (specifically subject to the final approval plan)
5. Construction scale: about 90,000 square meters (specifically subject to the final approval plan)
6. Investment estimate: 850 million yuan (including about 200 million yuan for land purchase, and the final transaction price shall prevail.)
7. Project funding source: Self-raised funds
8. Project construction period: 40 months (finally, the actual construction situation shall prevail)
III. Purpose of foreign investment and its impact on the company
The project is located in the Binjiang CBD, the core business district of Wenzhou, which is the main area for the development of the river in Wenzhou. It has regional advantages, transportation advantages, business environment advantages and industrial development orientation advantages.
Focusing on the strategic positioning of building a global leading enterprise of polyurethane products and materials, relying on the existing advantageous industrial foundation of Wenzhou, the company has built Huafeng New Material Application Joint Innovation Center, focusing on creative design, material research and development, mold design and processing, equipment design and manufacturing, and raw material centralized procurement. , provides one-stop solutions, realizes the transformation from suppliers to partners, enhances the collaborative innovation ability, R&D and design ability and value creation ability of the industrial chain, cultivates new kinetic energy, creates new advantages and injects new impetus for the company.
With the continuous expansion and deepening of the application field of new polyurethane materials in recent years, polyurethane products have achieved rapid growth in production and sales in many fields such as construction, electronic equipment, new energy and environmental protection. The company’s polyurethane stock solution is currently mainly used for shoe materials, as well as the manufacture of low-speed tires, sports equipment, memory pillows, furniture, etc. In the future, while maintaining the steady development of the sole stock solution, it will vigorously develop the product stock solution and continue to develop revenue growth points.
By promoting collaborative innovation and supporting docking between the upstream and downstream of the polyurethane new material industry chain, demand-driven research on advanced basic polyurethane new materials, key strategic emerging polyurethane new materials and cutting-edge polyurethane new materials will help improve the company’s future in polyurethane new materials. The research and development capabilities in the field of materials are conducive to the expansion of the company’s new products, and may have a certain impact on the company’s development in the future.
Investing in the construction of Huafeng New Material Application Joint Innovation Center is in line with the company’s future development plan. The company has been deeply involved in the polyurethane industry for 30 years. As a bridge between the upstream and downstream of the polyurethane industry chain, it has accumulated a lot of upstream and downstream channel resources and technical experience in the process of operation. The continuous expansion of the polyurethane new material industry chain, creating a new strategic fulcrum, and changing from chasing the market to guiding market demand, on the other hand, will help the company to improve the industrial structure, broaden the product category, and further improve the company’s ability to resist risks and sustainable development. ability.