On January 28, 603718.SH 2022, The company officially closed the production line of the Shanghai factory, and the relevant production capacity will be mainly transferred to Shandong Haili, a wholly-owned subsidiary. Due to the relocation involved, according to the provisions of the state, it is necessary to obtain re-approval from the Ministry of Agriculture and Rural Affairs and other relevant competent departments before production and sales, which generally takes 6-9 months and is uncertain, please pay attention to the risks of the majority of investors.
The company's Shanghai factory has now completed the 2022 sales and stockpiling, and will receive government compensation, so the relocation of the Shanghai factory will not have a significant negative impact on the overall performance in 2022, but the transfer of production across provinces may be affected by force majeure such as government approval and the new crown epidemic, and the production date after the transfer is difficult to determine, and the product market may be out of stock, which may have a certain negative impact on subsequent operations, please pay attention to the investment risks of the majority of investors.