POE mass production takes the spotlight, while Dingjide faces regulatory investigation for disclosure violations

On the evening of May 29, Liaoning Dingjide Petrochemical announced that the listed company and its actual controller, Zhang Zaiming, had both received notices of case filing from the China Securities Regulatory Commission (CSRC) (Case Nos. 0022026008 and 0022026007) on the same day. Due to alleged violations of laws and regulations regarding information disclosure, the regulatory authority formally initiated an investigation in accordance with the Securities Law and the Administrative Penalty Law. The company stated externally that daily production and operations are stable and orderly, and the case filing has not caused a substantive impact on the main business for the time being; during the investigation period, the enterprise and the actual controller will fully cooperate with the verification and fulfill information disclosure obligations in accordance with regulations.

I. Root Cause of Case Filing Exposed: 305 Million Yuan in Fund Transfers, 201 Million Yuan Constitutes Non-operational Fund Occupation by Actual Controller

This case filing directly targets the related-party fund violation issues exposed by the previous inquiry from the Shanghai Stock Exchange. According to the reply to the regulatory inquiry, Dingjide's holding subsidiary, Petrochemical Technology, once under the pretext of material procurement, transferred a total of 305 million yuan to 9 trading companies, of which 201 million yuan flowed back to actual controller Zhang Zaiming and his related parties after multiple rounds of account transfers, used as capital contribution to project companies, forming a typical non-operational occupation of funds. Although the company disclosed that the involved funds had been fully repaid subsequently, the fact of illegal occupation objectively existed and was the core trigger for the regulatory initiation of the case. In terms of equity structure, Zhang Zaiming and his spouse collectively control 51.26% of the company's shares, holding an absolute controlling position.

II. Key Timeline of the Event: Case Filing, Surge in Performance, and Successive Dramatic Fluctuations in Stock Price

1.May 29: Dingjide disclosed the announcement of the case filing; both the company and the actual controller were investigated by the CSRC;

2.May 30: The company issued a supplementary announcement stating that the investigation does not interfere with normal operations, and disclosed its quarterly report on the same day, with revenue of 305 million yuan and net profit of 11.1784 million yuan for the period, representing a year-on-year surge in net profit of 431.66%;

3.June 1: The landing of the negative news of the case filing triggered market panic, and the company's stock price hit the limit down (fell by the daily limit) in a "one-word" straight line, with market value shrinking by nearly 60% compared to historical highs, and secondary market valuation retreating significantly.

III. Fundamentals Highlights: POE New Material Project Lands, Opening Corporate Growth Space

On October 16, 2025, Dingjide released a project progress announcement, stating that its subsidiary Petrochemical Technology's industrialization unit for POE high-end new materials successfully commenced production, producing qualified mass-produced products, with key physical property indicators meeting or even exceeding similar top-tier overseas products.

As a core raw material for photovoltaic encapsulant films and automotive lightweighting, POE has long been highly dependent on imports, leaving broad space for import substitution. The landing of the project marks the company's evolution from a traditional catalyst and fine chemical additives producer into a diversified chemical enterprise with a dual-main business of fine chemicals and new materials.

Prior to industrial implementation, the pilot products of the project had been supplied in batches to domestic leading modified plastics companies such as Kingfa Science & Technology, Pret, Dawn Polymer, Huitong New Materials, and Suzhou Hechang Polymer, etc. The product quality has been verified by the downstream industrial chain, laying a solid customer foundation for subsequent production capacity expansion.