WAZAM(SH:603186) Shang Hai Zheng Quan Bao·2025-06-30 20:08Summary of Key Points Core Viewpoint - Zhejiang Huazheng New Materials Co., Ltd. is undergoing a relocation process due to urban development needs in Hangzhou, with a total compensation amount of approximately RMB 300.59 million for the relocation of its facilities [1]. Group 1: Relocation Overview - The company is required to relocate part of its land and buildings, totaling an area of 33,044.57 square meters, as mandated by the Hangzhou Yuhang District government [1]. - The relocation compensation agreement was signed on January 17, 2025, and was approved in the company's first extraordinary general meeting of 2025 [2]. Group 2: Progress of Relocation - The company received the first installment of the relocation compensation amounting to RMB 150.29 million on February 12, 2025 [2]. - Due to delays in the renovation of the new operational site for its subsidiary, Hangzhou Huaju Composite Materials Co., Ltd., the company has negotiated an extension for the vacating of the current premises, with a new deadline set for December 31, 2025 [2]. Group 3: Impact on the Company - The initial compensation received will not affect the company's current profit and will be recognized in the profit of the year when the relocation is completed and verified by the local government [3]. - If the relocation proceeds smoothly, the company anticipates an increase in net profit of approximately RMB 220 million, subject to final audit confirmation [3]. - The extension of the relocation timeline is manageable and will facilitate the production and delivery of orders for the subsidiary, ensuring no adverse effects on the company or its shareholders [3].