For The 200 Million Government Subsidy, Ruan Jingbo, The Youngest Woman Chairman Of A Shares, Was Interviewed By The Securities Regulatory Commission.

Zhejiang leap earth Limited by Share Ltd (hereinafter referred to as "run earth shares") announced in the evening of November 20th, the chairman of the board of directors Ruan Jingbo, general manager Xu Wanfu, Secretary of the board of directors Liu Boping received the Zhejiang administrative regulatory bureau issued the administrative supervision measures decision "on Ruan Jingbo, Xu Wanfu, Liu Boping to take supervision and management measures," the main contents are as follows:

In June 28, 2019, intercontinental shares received 222838742.78 yuan special government subsidy from the Hangzhou Bay Integrated Management Office in Shangyu District of Shaoxing, accounting for 16.97% of the audited net profit of the company in 2018, and did not fulfill the obligation of information disclosure in time. Until August 31, 2019, the above items were disclosed in the company's 2019 semi annual report. The above acts violated the second provisions, third articles and thirtieth articles of the listed companies' information disclosure management regulations. Zhejiang securities regulatory bureau decided to take the supervision and management measures of the letter of warning issued to the company, and record it into the integrity file of the securities and futures market. The company should submit a written rectification report to the Zhejiang securities regulatory bureau before December 1, 2019. Ruan Jingbo, Xu Wanfu and Liu Boping should bear the main responsibility. The Zhejiang securities regulatory bureau decided to take supervision and management measures for Ruan Jingbo, Xu Wanfu and Liu Boping to supervise the conversation and record them in the credit archives of the securities and futures market respectively.

The company has attached great importance to the above supervision and management measures. The chairman of the company, Ms. Ruan Jingbo, general manager, Mr. Xu Wanfu and Secretary of the board of directors, Mr. Liu Boping, have received regulatory interviews with the Zhejiang securities regulatory bureau within the stipulated time. At the same time, the company and its responsible parties will actively rectify the situation and submit timely rectification reports to the Zhejiang Securities Regulatory Commission within the prescribed time.

According to public information, intercontinental shares is one of the leading domestic dyestuff enterprises. The total annual dye production capacity of the company is nearly 210 thousand tons, of which 110 thousand tons of disperse dyes, 80 thousand tons of reactive dyes, and 20 thousand tons of other dyestuffs, and two of the market share of dyestuff products. The first batch of 80 thousand tons of reactive dyestuff was launched in June 2019. After a period of commissioning, the production process is stable and the operation is good. The output has reached 60% of the design capacity.

In recent years, with the continuous improvement of the concentration of dyestuff industry, the capacity and revenue of intercontinental shares have increased. In the first three quarters of 2019, the total revenue of intercontinental shares increased by 5 billion 110 million, up 1.1% from the same period last year, and net profit of 1 billion 80 million, up 6% from the same period last year, and the earnings per share were 0.94 yuan. During the reporting period, the gross profit margin of the company was 34.8%, down 3.1 percentage points from the same period, and the net interest rate was 20.7%, up 0.8 percentage points from the same period last year.

In addition, non recurring gains and losses totals 200 million yuan, which has a greater impact on net profit. After deducting the non recurring gains and losses, the net profit of the returned parent was 880 million yuan, down 7.1% compared to the same period.

Wang Zhe, an analyst at CITIC Securities, said earlier that in the first half of 2019, there was a significant gap between the supply of benzene and two amine in the first half of the year, and the price rose sharply. The price of disperse dyes and reactive dyes rose to 45 and 31.5 yuan / kg respectively. However, due to the Sino US trade friction, the demand for textile and clothing in the lower reaches was seriously frustrated, and the price of the two fell back to 29 and 26 yuan / kg respectively, and the industry boom declined rapidly. At present, Sino US trade frictions have been eased somewhat in the short run, and the downturn in demand for industry is expected to improve. The oligopoly pattern is expected to push the price of dyes up to the bottom.

Judging from the observation, the total capacity of intercontinental shares is 190 thousand tons, of which the disperse dye capacity is 110 thousand tons, the reactive dye capacity is 60 thousand tons, the other dye production capacity is nearly 20 thousand tons, and the product sales market share ranks the top two of the domestic dyestuff market share. Previously, the company's new 80 thousand tons of reactive dye production capacity is being gradually put into operation, which is expected to enhance the scale effect and deepen the oligopoly pattern of the industry.