Wansheng Co., Ltd. (603010.HK) SH): The company's coating additives customers are basically marine coating customers

Wansheng Co., Ltd. (603010.HK) SH) announced on April 13, 2024 that on April 12, 2024, Wansheng Co., Ltd. accepted institutional research, Chairman: Gao Xianguo, Director, President: Zhou Zhouchang, Independent Director: Chen Liangzhao, Vice President, CFO: Song Ruibo, Vice President, Secretary of the Board of Directors: Qian Ming, all participated in the reception and answered the questions raised by the research institutions.

The main contents of the survey:

The company gave answers to the questions that investors were concerned about at this briefing, and the solicitation questions and online text Q&A interactions were sorted out as follows:

Question 1: How does the company maintain its leading position as a phosphorus-based flame retardant?

Answer: Hello, phosphorus-based flame retardants have always been the company's core business, over the years, we have vigorously introduced scientific research talents, strengthened school-enterprise cooperation, increased product categories, and improved product technology and performance. In addition, we are also constantly broadening the application field, breaking through to emerging markets, on the basis of the application of polyurethane, PC or PC+ABS alloy, and constantly extending to polyurethane elastomer TPU, copper clad laminate, high-temperature nylon and other fields, and developing a series of special flame retardants in new application fields; Innovative application solutions. The company has been deeply involved in phosphorus-based flame retardants for nearly 30 years, and has the confidence and ability to maintain the leading position of phosphorus-based flame retardants and continue to grow bigger and stronger, regardless of the experience and advantages in production management, process technology accumulation, team building, customer resources, global network, etc. Thank you.

Question 2: How is Dawei's business doing?

Answer: Hello, Dawei subsidiary produces amine additives and catalyst series products, which are mainly used in personal care materials, disinfectants, fungicides, water treatment, coatings, pharmaceutical intermediates and lubricating oil additives intermediates, electronic chemicals and other fields. In recent years, the company has optimized the layout of Dawei amine products, focused on expanding products with market prospects, profit potential, and production line synergy, and consolidated the business foundation of amine products, such as optimized aliphatic tertiary amine series products for hand sanitizers, fungicides and bacteriostatic agents, and sunamide for pesticide additives. In addition, the company's high-performance quaternary ammonium salt derived downstream on the basis of the existing tertiary amine production capacity has further extended the industrial chain of the company's daily chemical raw materials, expanded the downstream daily chemical customers, and accumulated a customer base for the future development of amino acid surfactants in Weifang, Shandong. We believe that through the optimization and improvement of Dawei's products and management, Dawei's profitability will be better and better in the future. Thank you.

Question 3: The company's coating business was good last year, what will be the situation this year?

Answer: Hello, the coating additives sector is the company's development business, after nearly 5 years of cultivation, the company has become one of the main domestic suppliers in the subdivision of the industry, with the gradual completion of the verification of large customers, customer orders gradually increased, product quality and reputation has been further recognized by downstream customers. We have been increasing the investment in scientific research of coating additives, set up an efficient technical team, and constantly introduce products with high added value and technical barriers, and the cooperation and development with customers are gradually deepening, and constantly launching customized products. According to the website of the Ministry of Industry and Information Technology, the three major indicators of mainland shipbuilding will grow simultaneously in 2023, and the international market share will remain the world's leading one. As of the end of December 2023, the hand-held order volume was 139.39 million deadweight tons, a year-on-year increase of 32%. According to the Clarkson report, there will be $1.6 trillion in newbuilding investment in the next decade, with an average of 2,140 newbuilding orders per year. The development of the marine coatings market is closely related to the development of the shipbuilding industry. The shipbuilding industry has ushered in a new round of business cycle, and the market demand for marine coatings has also grown rapidly with the development of the shipbuilding industry, and the company's coating additives have also grown with the growth of the market demand for marine coatings. Therefore, in recent years, the coating additives sector is in a period of rapid growth. Thank you.

Question 4: Will the company launch an equity incentive plan in the future?

Answer: Hello, the company has issued the "Announcement on the Share Repurchase Plan by Centralized Bidding Transaction" at the end of 2023, and the repurchased shares are intended to be used for employee stock ownership plans or equity incentives, and the company is still in the process of share repurchase. In the future, the company will consider launching an equity incentive plan at an appropriate time, please pay attention to the relevant announcements of the company at that time. Thank you.

Question 5: What is the company's performance in the first quarter of 2024?

Answer: Hello, the company's first quarter report of 2024 is scheduled to be disclosed on April 27, 2024, please pay attention to the relevant announcement, thank you.

Question 6: How does the company develop in R&D and innovation?

Answer: Hello, as a national high-tech enterprise, the company adheres to the value proposition of "world-class functional new material enterprise", closely follows the two development themes of "green and low-carbon, scientific and technological innovation", takes "R&D and innovation" as the driving force of enterprise development, and takes "R&D talents" as an important strategic resource of the enterprise. For a long time, it attaches great importance to scientific research innovation and R&D team building. In addition to increasing the R&D investment of the original research institute, in 2023, the new Institute of Advanced Materials and Engineering will be established, and high-end R&D talents and teams will be introduced, striving to make breakthroughs in high-tech technologies, especially national technical problems, forming a technology and application platform with unique advantages, and accelerating the industrialization of scientific and technological achievements. Over the years, the company has always adhered to the scientific and technological concept of "developing new materials through innovative chemistry to achieve innovative application, and developing green industry through innovative chemistry to achieve sustainable development", and actively promoted external cooperation, especially "industry-university-research" cooperation, while vigorously building and strengthening independent research and development capabilities. In recent years, the company has carried out school-enterprise cooperation with well-known domestic universities such as Ningbo Institute of Materials Technology and Engineering of the Chinese Academy of Sciences, Tsinghua University, Wuhan University of Technology, Beijing Technology and Business University, East China Normal University, etc., and has invested in R&D in the fields of flame retardants for 5G communications, new high-temperature nylon flame retardants, green amino acid surfactants, bio-based coating additives, and new energy materials. The company continues to deepen and innovate in the introduction, training and incentive of scientific research talents, adheres to the principle of "strong individual, excellent as a whole", continuously optimizes the structure of the scientific research team, actively introduces high-level technical talents, enhances the strength of core technical talents, strengthens the construction of the R&D team, and gradually forms a highly educated, high-skilled and young R&D team. In the future, we will continue to introduce high-level R&D talents, strengthen R&D investment, enhance the company's R&D and innovation strength, ensure that R&D and innovation achievements are implemented as soon as possible, and promote the company's sustained, healthy and rapid development. Thank you.

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