It was previously reported that the DTBP content in the meltblown materials produced by Dow was over the standard, resulting in the return of its meltblown cloth by downstream customers. Affected by this news, Dow Jones shares fell to the limit yesterday.
Dows official response:
The return is due to the saturation of melt blown fabric market
Dow said that on April 15, 2020, the company signed a contract with Zhonggu Plastics Co., Ltd. for the processing of melt blown materials (modified PP plastic z-1500r), which agreed on four testing standards and purchased 600 tons of melt blown materials. Zhonggu plastics paid the company a total contract amount of 24 million yuan (including tax price) according to the contract, and the company has completed the quantity of Zhonggu plastics ordered according to the contract.
With the saturation of the epidemic situation, the supply of all kinds of meltblown fabrics in the upstream and downstream markets is gradually becoming more and more normal. Zhonggu plastics communicated with the company about the return and refund. The company did not agree with the proposal proposed by Zhonggu plastics. Zhonggu plastics filed a lawsuit to Yantai intermediate peoples Court of Shandong Province, and the case is under trial.
Dawn stressed that the real reason why Zhonggu plastics asked for refund was not due to the quality problem of raw materials of Dow, but the supply-demand relationship of meltblown cloth market changed, and the market as a whole tended to be saturated and oversupplied.
In addition, as far as whether DTBP is hazardous chemicals to human body, the state has no laws and regulations prohibiting the use of DTBP, and there is no scientific basis for harming human health.
DTBP residue is not within the scope of the companys quality inspection sheet, therefore, this item cannot be used as a necessary inspection item to judge whether the companys product quality is qualified, and the national standard GB / t30923-2014 of plastic polypropylene (PP) melt blown special materials quoted by Zhonggu plastics is a recommended national standard, not a mandatory national standard. As a chemical reagent, DTBP is widely used in plastic and rubber industry
DTBP is still used as degradation agent in the revision of new national standard for meltblown materials. DTBP is a trace residue in the melt blown material. After high temperature melt blowing process, the trace DTBP residue will also volatilize.
According to public information, Shandong daoen polymer materials Co., Ltd. was established on December 6, 2002. In January 2017, dawn Materials Co., Ltd. was successfully listed on the SME Board of Shenzhen Stock Exchange.
Dawn Co., Ltd. is known as mask first concept stock. Its product polypropylene melt blown special material is the raw material of mask melt blown cloth, which is used for the middle isolation layer of mask, and has a high market share.
It has been reported that DTBP content in its melt blown material exceeds the standard and is prosecuted
Dow Jones shares fell limit
A few days ago, a media report said that dawn Co., Ltd. was sued by downstream customers because the companys melt blown material for masks was said to have a residue of hazardous chemicals more than 100 times higher than the national standard.
It is reported that Zhejiang Zhonggu Plastics Co., Ltd., a Zhejiang melt blown fabric enterprise, recently reported that it signed a contract with dawn in mid April this year to purchase 600 tons of melt blown material for mask with a price of 40000 yuan / ton in advance of 24 million yuan.
During the period from May to October, the company supplied meltblown materials in batches.
However, between May and June, Zhonggu plastics received feedback from downstream mask customers about the quality problems of meltblown fabrics. Subsequently, Zhonggu plastics suspended the production of meltblown fabrics, investigated the problems, and requested dawn to suspend supply.
Since July, Zhonggu plastics has extracted different batches of meltblown materials produced by dawn Co., Ltd. for five times and sent them to professional testing institutions for inspection. The highest DTBP in the samples exceeds the upper limit of the national standard (GB / t30923-2014) by more than 100 times.
It is understood that DTBP is a dangerous chemical, most of which can be decomposed and volatilized at high temperature during melt blowing process. However, the residual amount of DTBP in melt blown material exceeds the standard greatly, which may lead to instability of downstream melt blown fabric process and release a large number of volatile organic compounds (VOC) with peculiar smell. If a large number of excessive DTBP is exceeded, it is suspected that genetic defects may be caused.
Zhonggu Plastics Co., Ltd. thinks that the melt blown cloth has quality problems. It has previously reported to dawn, however, dawn refused to negotiate the return refund. Zhonggu plastics has filed a lawsuit against dawn in Yantai intermediate peoples Court of Shandong Province, and the case is under trial.
In the court, Zhonggu Plastic Co., Ltd. filed a lawsuit to terminate the sales contract, refund the total payment of 24 million yuan, compensate 690000 yuan of economic loss and 300000 yuan of goodwill loss.
Due to the bad news that the residual dangerous chemicals in masks exceed 100 times, and dawn shares are sued by customers in court, Dow shares opened at 25.73 yuan on November 26. By 2:00 p.m., the stock price of dawn stock has dropped by 10% to 23.49 yuan, and the volume limit is 23.49 yuan / share, with a turnover of 370 million yuan in the whole day.
In response to the report by customers due to DTBP exceeding the standard, the director and Secretary of Dow Jones Stock Co., Ltd. responded after hours yesterday that the dispute with the reported customer is in the process of court hearing, the data provided by the other party is not true and objective, and the companys product quality conforms to the national regulations. At present, there is no evidence to prove that the use of masks produced by the companys products will cause personal damage, and the company will make a unified reply as soon as possible.
Anti epidemic concept stocks
Stock price up 500% in 3 months
In the first half of this year, dawn stock is a real demon stock. On January 20, before the outbreak of the epidemic, the stock price of Dow was around 11 yuan for a long time, and even dropped below 10 yuan at the end of December last year.
After the outbreak of the epidemic, masks became a hot commodity. In order to produce qualified masks, the intermediate layer meltblown cloth is the key, and the raw material of meltblown cloth is the key. As a result, as the largest manufacturer of polypropylene (PP) melt blown special materials in China, the upper tuyere of dawn stock station has received more than 1000 tons of orders in just three days.
According to the companys introduction, 1 ton polypropylene melt blown special material can make 300000-500000 N95 masks or 1 million disposable medical surgical masks.
Benefiting from the booming demand of the mask market, Dow Jones Co., Ltd. pulled 18 limit boards, and its stock price rose to 61.71 yuan on March 10, with the cumulative increase of 500% since the low point at the beginning of the year.
At the same time, Yu Xiaoning and Han Limei, the founders of about 70% of the companys shares, have risen to nearly 15 billion yuan, more than four times the record in last years Hurun rich list. The two businessmen from Longkou, a county-level city in Yantai, have become the black horse tycoons of great concern.
Until March 10, due to the special investigation of meltblown cloth price carried out by the State Administration of market supervision, the news superimposed on supply and demand, which led to Dows stock rising to falling and falling from its high level.
After that, Dows stock price continued to callback, falling to 26.4 yuan / share on June 11, but then rebounded. By the end of July 13, Dow Jones shares had reached 39.11 yuan / share, still up 2.7 times in the year. The latest total market value was 15.9 billion yuan.
After the middle of July, the share price of Dow began to fluctuate and fell, and it was 23.49 yuan / share as of November 26.
Growth in performance
Net profit in the first three quarters was 780 million
This year, due to the impact of epidemic prevention and control, the demand for melt blown materials has grown explosively, and the orders for polypropylene melt blown specialty materials have increased significantly, which has contributed a lot to Dow Jones, and has been selected as the national key enterprise for epidemic prevention and control.
At the beginning of November, dawn Co., Ltd. released the third quarter report of 2020. In the first three quarters of 2020, the companys report card was brilliant: operating revenue was 3.307 billion yuan, an increase of 65.88% over the same period of last year; the net profit attributable to shareholders of listed companies was 780 million yuan, an increase of 514.52% compared with the same period of last year.
Among them, the operating revenue in the single and third quarters was 1.032 billion yuan, with a year-on-year increase of 48.53%, and the net profit attributable to it was 195 million yuan, with a year-on-year increase of 306.05%. In the first three quarters, the weighted average return on net assets of the company was 53.94%, an increase of 41.21 percentage points over the same period of last year; the basic earnings per share was 1.93 yuan, an increase of 522.58% over the same period of last year. It is worth mentioning that on the same day, Haier New materials, a subsidiary of dawn, used its own funds to acquire 13.22% of the shares held by Haier Group, and authorized the management to handle relevant matters. After the completion of the transaction, Haier New materials holds 13.22% of the shares of China Science and technology first, and the company indirectly holds the shares of China science first. After confirmation, the transfer consideration is RMB 13116100. Source: China Fund News Editor in charge: Yang Bin_ NF4368
Among them, the operating revenue in the single and third quarters was 1.032 billion yuan, with a year-on-year increase of 48.53%, and the net profit attributable to it was 195 million yuan, with a year-on-year increase of 306.05%. In the first three quarters, the weighted average return on net assets of the company was 53.94%, an increase of 41.21 percentage points over the same period of last year; the basic earnings per share was 1.93 yuan, an increase of 522.58% over the same period of last year.
It is worth mentioning that on the same day, Haier New materials, a subsidiary of dawn, used its own funds to acquire 13.22% of the shares held by Haier Group, and authorized the management to handle relevant matters. After the completion of the transaction, Haier New materials holds 13.22% of the shares of China Science and technology first, and the company indirectly holds the shares of China science first. After confirmation, the transfer consideration is RMB 13116100.