Securities Code: 002001 Securities Abbreviation: Xinhuacheng Announcement No.: 2026-008 Zhejiang Xinhuacheng Co., Ltd. Announcement on the Progress of the "Quality Return Double Improvement" Action Plan
The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and are free from false records, misleading statements, or material omissions.
Zhejiang Xinhuacheng Co., Ltd. (hereinafter referred to as "Xinhuacheng" or the "Company"), in order to enhance investor confidence, protect the interests of all shareholders, and promote the long-term sustainable development of the Company, based on its confidence in future development prospects and recognition of the Company's value, disclosed the "Announcement on the 'Quality Return Double Improvement' Action Plan" (Announcement No.: 2024-002) on March 9, 2024.
The Company held the 18th meeting of the 9th Board of Directors on April 14, 2026, and deliberated and approved the "Proposal on the Progress of the 'Quality Return Double Improvement' Action Plan." The progress of the "Quality Return Double Improvement" action plan is hereby described as follows:
I. Innovation-Driven Development to Optimize and Specialize Core Business
Since its establishment, Xinhuacheng has focused on fine chemicals, adhering to innovation-driven development, and relying on its two core platforms of chemical industry and biotechnology to develop various functional chemical products. After years of development, it has successively broken through key bottleneck technologies for products such as Vitamin E, Vitamin A, PPS, and methionine, achieving import substitution. With its leading technology, scientific management, and integrity services, the Company has become a major global vitamin producer, a top 100 fine chemical enterprise in China, a top 10 enterprise in China's light industry for flavors and fragrances, and a well-known special engineering plastics producer. In 2025, the Company achieved operating revenue of 22,251.3619 million yuan, an increase of 2.97% year-on-year; total profit was 784,951.74 million yuan, an increase of 13.05% year-on-year; and net profit attributable to shareholders of the listed company was 676,419.92 million yuan, an increase of 15.26% year-on-year.
Xinhuacheng adheres to the R&D philosophy of "demand-oriented, internal and external integration." Since its listing, the Company has invested a cumulative total of nearly 8 billion yuan in R&D. The Company currently has more than 2,800 R&D personnel, accounting for over 20% of the total R&D personnel. The Company has R&D centers at its headquarters, various production bases, and overseas. It has established an innovative R&D system covering basic research, engineering development, process optimization, and product application development. Focusing on common, key, and forward-looking technologies in the chemical industry, it has developed and mastered a number of key technologies with strategic impact on economic development, promoting industrial transformation and upgrading. The Company has undertaken more than 70 national and provincial-level projects, won two second prizes for the National Technology Invention Award, and holds more than 800 effective patents, including two gold awards for Chinese patents, and has repeatedly led and participated in the formulation of national, industry, and group standards.