Zhejiang Zhongcheng (002522.SZ ) The recent stock price performance has been strong, and it has risen by more than 30% from the 23rd to the present. Great Wisdom News Agency (WeChat ID: dzh_news) learned that from the company's operating fundamentals, Zhejiang Zhongcheng's new POF heat shrinkable film production line has passed the run-in period and is operating normally, and the company's multi-layer composite heat seal and other new product market development work is also steadily advancing, and it is expected that orders and sales will be formed in the first quarter.

Zhejiang Zhongcheng's main business is the research and development, production and sales of multi-layer co-extruded polyolefin heat shrinkable film (POF heat shrinkable film) products. In the first three quarters of 2014, the company achieved a net profit of 39.9692 million yuan, down 23.63% year-on-year.The reason for the decline in performance is that the company's new POF heat shrinkable film production line has led to a decline in product yield due to the run-in period, coupled with the increase in raw material prices, the gross profit level of the company's POF heat shrinkable films, especially ordinary films and high-performance films, fell sharply during the reporting period.However, Chu Juntao, the representative of Zhejiang Zhongcheng, said that the company's POF heat shrinkable film production is stable at present, and “the run-in period has basically ended.”

In addition to the original business is expected to restore the previous profitability, new products such as multi-layer composite heat seals are also expected to become Zhejiang Zhongcheng's new profit growth point this year.According to Chu Juntao, the company is stepping up the market development of new products, and it is expected that orders and sales of multi-layer composite heat seals will form in the first quarter of this year.

Regarding the market rumors that ”Zhejiang Zhongcheng has successfully developed the world's leading chilled membrane products in cooperation with the Institute of Chemical Processes of the Chinese Academy of Sciences," Wu Jun, the company's secretary of the board, denied it.He also said that the new product that the company is still developing is PVDC high barrier heat shrinkable film.

In addition, as the main sponsor and largest shareholder of Jiashan Zhongcheng Microfinance Co., Ltd., Zhejiang Zhongcheng has recently been sought after by the market for its “private banking concept”.However, the company said that the current micro-loan business is not prosperous, and the company will gradually shrink the scale of this part.