Aspect: Zhejiang Longsheng (600352): Price Fluctuation Of Major Products

Securities code: 600352 securities short: Zhejiang Longsheng announcement number: 2019-037

Zhejiang Longsheng group Limited by Share Ltd announcement on price fluctuation of major products

The board of directors and all directors of the company guarantee that there is no false record, misleading statement or major omission in the contents of this announcement, and shall bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.

Important note:

The selling price of disperse dyes and two benzyl amine in the main products of the company is adjusted by the impact of the rising price of raw materials and the relationship between supply and demand. At present, the sales volume is stable, but the company's operating income and profit are not only affected by the fluctuation of the price of the main products, but also affected by the rising cost of the business and the fluctuation of the sales volume.

Media reports are exaggerated and false about the company's product price changes and performance forecasts.

The sales revenue of benzene two amine accounts for 5.21% of the total revenue of the company, which accounts for a relatively small profit margin.

A brief account of hearsay

Recently, the relevant media reported on the adjustment of the price of the main products of the company, and made a forecast on the current situation of the company on the fluctuation of the related product prices.

Combined with the actual situation, the company explains the current situation of the company's main products.

Two. Price fluctuation of major products and their impact on the company

1, the company's production of benzene two amine subsidiary Zhejiang Amphenol Chemical Co., Ltd., Zhejiang Hongsheng Chemical Co., Ltd. is now producing all the normal, there is no stop production.

2, the current inter company benzene two amine production capacity of 65 thousand tons / year, in 2018 output of 65 thousand tons, of which 33 thousand tons of self use, external sales to downstream customers 32 thousand tons.

The sales of M - two amine in 2018 accounted for 5.21% of the total revenue of the company, accounting for a relatively small profit margin.

3, the company's disperse dyes and interphenyl two amine products have been adjusted recently, but there are some sales contracts that need to be continued. At present, the average paction price is not consistent with the prices reported in the relevant reports. The average price of disperse dyes on April, 1-3, rose 7% compared with the previous month, which was 11.35% higher than that in 2018 (the quarterly fluctuation range of the average annual price of tax included in the 2018 year is 3.8-4.5 million yuan / ton); the average price of benzene two amine on April 1-3 increased by 23% compared with the previous month, which was more serious than that in the 2018 year (the annual fluctuation interval of the average annual average price of tax included in the annual average of 3.1-4.2 yuan / ton).

4, the recent adjustment of the price of disperse dyes in China is mainly affected by the rising price of raw materials and the relationship between supply and demand. In 2018, the domestic disperse dye revenue accounted for 19.70% of the total business revenue. The current sales volume was stable, but the company's operating income and profit were not only affected by the fluctuation of the price of the main products, but also affected by the increase in operating costs and the fluctuation of sales volume.

The Shanghai stock exchange website (www.sse.com.cn) is the information disclosure website designated by the company. The Shanghai Securities Daily, the securities times, and the Securities Daily are the newspapers and periodicals selected by the company. The information released by the company is based on the bulletin published in the above designated newspapers. Investors are invited to invest rationally and pay attention to risks.

Notice hereby.

Zhejiang Longsheng group Limited by Share Ltd

Board of directors

Two O 19 April 8th