Zhejiang Longsheng Postponed To Reply To The Annual Report Inquiries Northbound Capital Dropped Sharply

Jiangsu Xiangshui explosion caused dye intermediate price expectations, once Zhejiang Longsheng (600352) stock prices rose strongly.

Starting from the stock price in March 21st, it reached a record high of 10 in April, with an increase of 116%.

Since then, Zhejiang Longsheng share price has been declining steadily, and yesterday it was reported at the limit price.

According to data from the list, Shanghai Stock Exchange yesterday became the main selling force through special seats and institutions.

Among them, north capital bought 96 million 250 thousand yuan through Shanghai Stock Exchange and sold 346 million yuan, sold 250 million yuan, and sold 116 million yuan for an institutional seat.

Zhejiang Longsheng announced in June 11th that the company received the post office audit report on the 2018 annual report in May 31st, asking for explanations of the reasons for the substantial increase in operating income and net profit, and making comparisons with the industry.

Zhejiang Long Sheng said that after receiving the inquiry letter, the company actively organized relevant parties to sort out the issues involved in the inquiry letter one by one. In view of the fact that there are more matters involved in the inquiry letter, some matters need further verification and improvement, and the auditor's opinion is needed. In order to ensure the accuracy and completeness of the reply, the reply letter will be postponed.

After completion of the related work, the company will complete the reply to the inquiry letter before June 14, 2019 and disclose it in time.

Zhejiang Longsheng is the largest inter benzene two amine production enterprise in China. Its main business is the textile chemicals business mainly based on dyes and auxiliaries, and intermediates based on benzene, two amine and resorcinol.

As the world's leading producer of special chemical products and industries, Zhejiang Longsheng has 300 thousand tons of dye production capacity and an annual capacity of 100 thousand tons of auxiliaries, ranking first in the global market.

Zhejiang Longsheng has achieved excellent results in 2018. Last year, the company achieved double breakthroughs in business revenue and profits and hit a record high.

The total business income reached 19 billion 76 million yuan, an increase of 26.32% over the same period last year, and net profit of 4 billion 111 million yuan, an increase of 66.2% over the same period last year.

In May 31st, Zhejiang Longsheng received an inquiry letter from the Shanghai Stock Exchange, which raised eight questions for the company's operation and financial data.

In March this year, the explosion of Xiangshui in Jiangsu, the Jiangsu Jiangsu Tian Jiayi Chemical Co., Ltd. is one of the three largest producers of benzene, two amine in the country. The other two are Zhejiang Longsheng and Sichuan red light.

The market expects dye intermediates two benzene amine price rises, and then let Zhejiang Longsheng go out of a strong wave of rising prices.

2018 annual report shows that the company's dye gross profit margin is 47.83%, an increase of 8.93% over the same period, the intermediate gross profit margin was 62.71%, an increase of 16.76% over the same period last year.

The Shanghai stock exchange requires the company to explain the reason and rationality of the gross margin of the related products higher than the average level of the same industry. Combined with the fluctuation of the market price and the intermediate price, the reason for the substantial increase in the gross profit margin of the intermediate body is higher than the average level of the industry.

In addition, the Shanghai Stock Exchange also pointed out that the company had problems in the preparation of inventory and its depreciation, sale of financial assets, impairment of goodwill, investment real estate, non recurring gains and losses, and acceptance of commercial acceptance bills, requiring the company to make corresponding explanations and supplementary disclosures.