Zhejiang Huaye: No Plans for Bonded Processing or Bulk Commodity Trading, Plans to Establish New Subsidiary in Singapore to Radiate Southeast Asia

Recently, good news came from the Phase II Stage I project of Shaanxi Coal Group Yulin Chemical Co., Ltd. (“Yulin Chemical”): the main structures of the No. 1 and No. 2 polypropylene extrusion pelletizing buildings were successfully topped out. The successful completion of this key milestone marks the full transition of polypropylene unit construction into the critical sprint phase of equipment installation, laying a solid foundation for subsequent internal equipment installation, pipeline laying, and system commissioning.

  June 1 — Goldman Sachs Group believes oil prices face two-sided risks as weak demand competes with supply losses in the Middle East caused by the war in Iran. Analysts including Daan Struyven said in a May 31 report that April oil sales data from Western Europe suggest a downside risk of about 2 million barrels per day to the bank’s already “very low” demand forecast for April. This adds downside risk of about $10 per barrel to its forecast of $90 per barrel for Brent crude in the fourth quarter. Goldman analysts said: “We believe that Middle East supply losses could last longer, posing significant upside price risks, but weak demand also presents significant downside price risks. Actual end-user oil demand may decline more than expected due to rising prices.”

Blue Sail MedicalOn June 1st, in response on the investor interaction platform, the company stated that its glove business has undergone unprecedented and significant industry fluctuations since 2020. Currently, the company’s two major categories of gloves—nitrile gloves and PVC gloves—each have an annual production capacity of 25 billion units, operating at full capacity with full sales. Glove prices have also significantly increased compared to the end of 2025. The market supply and demand relationship has undergone a significant positive change, which is favorable to leading Chinese manufacturers, and historical inventory pressure has been significantly alleviated. The increase in inventory write-downs in 2025 was mainly due to two reasons. First, the company, based on the prudence principle of the Accounting Standards for Business Enterprises, regularly conducts impairment tests on inventories. Although prices have rebounded from their lowest point, there remains a difference between the historical cost and the net realizable value of some inventory items, necessitating the recognition of corresponding inventory write-downs based on accounting estimates. Second, in 2025, the company conducted reasonable impairment tests and scrapped certain fixed assets of the Health Protection Division, and the impairment losses from these assets were also reflected in the financial statements. These accounting treatments are normal measures for the company’s continuous optimization of its asset structure, aiming to more truthfully and fairly reflect the company’s asset status and operating results. From 2025 to date, the company has taken a series of substantive measures to improve the profitability of its glove segment, including introducing Thai industrial investors to address upstream energy shortages, implementing multiple technical improvements, and strategically locking in raw material costs through advance procurement. Currently, the company’s glove business costs have returned to a leading industry level, and it is foreseeable that the glove business will become the segment with the greatest performance recovery potential for the company in 2026.

On May 27, an investor**Zhejiang HuayeIn February 2026, the expansion of the Zhoushan Port Comprehensive Bonded Zone was approved, coupled with the national policy on bulk commodity hubs. I would like to ask: 1) Can Zhejiang Huaye import metal materials and equipment enjoy bonded warehousing, customs clearance conveniences, or tariff reductions? 2) Does the company plan to leverage the geographical advantages of Zhoushan District to layout bonded processing or bulk commodity trading-related businesses? Is there a timeline for this? 3) Is the establishment of a company in Singapore related to this? In this regard,Zhejiang HuayeOn June 1st, the company responded on the investor interaction platform that its imported metal materials and equipment do not enjoy bonded warehousing, customs clearance facilitation, or tariff reductions; the company currently has no plans to engage in bonded processing or bulk commodity trading businesses. The company is currently focused on its main business and continues to deepen its efforts in the field of plastic machinery screws and barrels and Gorin columns. The company intends to establish a new subsidiary in Singapore to serve as a trade operation center covering the Southeast Asia region. This subsidiary will mainly target end users in the Southeast Asian plastics products industry, providing sales, technical support, and after-sales services for core components such as screws and barrels used in injection molding machines and extruders, helping the company to deepen cooperation with local customers and enhance market competitiveness.

Shanghai BASF May TDI settlement price is 16,200 RMB/ton, down 2,800 RMB/ton month-on-month, and the June listing price is 20,000 RMB/ton, down 3,000 RMB/ton month-on-month.