Recently, Shaanxi Nuozheng Biotechnology Co., Ltd., a wholly owned subsidiary of the company, signed a "contract for the transfer of the right to the use of state-owned construction land" with Pucheng County Natural Resources Bureau, Putu (2024) 8, according to the announcement of Meibang shares (605033). The land transfer price is 35.68 million yuan and the transfer life is 50 years.

According to the announcement, the purchase of land use rights for the construction project of an annual production line of 20000 tons of pesticide raw drugs and intermediates meets the needs of the company's own development, promotes the integrated development of the company's crude drugs and preparations, and helps the company to cope with the fierce market competition. enhance market share and sustainable development ability.

According to the latest annual report, in order to improve the layout of the pesticide industry chain, the company launched the construction project of Nuozheng biological production line with an annual output of 20000 tons of pesticide raw drugs and intermediates in Pucheng New material gathering area, Weinan Economic Development District, and planned to increase the production capacity of highly efficient green pesticides and fungicides in the upstream pesticide industry chain.

Combined with the development trend of the integration of raw drugs and preparations in the domestic pesticide industry, the company will devote great efforts to the R & D and production process improvement in the field of crude drugs, so as to ensure the supply of raw drugs needed for the production of its preparations. On the one hand, it can eliminate the uncertainty of product quality and supply guarantee that may exist in the purchased crude drugs, as well as the adverse effects of price fluctuations on the company's profits.CrashtagOn the other hand, with the release of crude drug production capacity in the future, the company will also add new profit growth points, the company's comprehensive strength and industry competitiveness will also be greatly improved, and the company's industrialization and scale advantages will be more significant.

(article source: China Securities News, China Securities Network)