At the annual shareholders meeting of Huahai Pharmaceutical (600521) held yesterday, two temporary proposals submitted by Zhou Minghua, the former general manager and second-largest shareholder of the company, were rejected. The proposals failed to gain approval, marking another setback for Zhou’s efforts to influence the company's direction. Meanwhile, current chairman and CEO Chen Baohua reaffirmed the company’s three-year commitment to an average annual growth rate of 25%, emphasizing that this target remains unchanged.
The first proposal, titled "Proposal for Requesting Changes in Mr. Zhou Minghua’s Promise to Shareholders," sought to revise certain commitments made by Zhou to investors. The second proposal, "Proposal for the Company’s 2007 Profit Distribution Preplan," aimed to outline a preliminary plan for profit distribution. However, neither received sufficient support from shareholders.
Voting results showed that for the first proposal, 5,585,348 shares voted against it (6.75%), while 8,236,759 shares supported it (9.95%). A total of 68,918,903 shares abstained (83.29%). For the second proposal, 53,469,603 shares were in favor (39.90%), 10,804,122 shares opposed (8.06%), and 6,731,003 shares abstained (52.04%). Notably, Chairman Chen Baohua did not cast a vote on either proposal.
During the meeting, Zhou Minghua addressed shareholders directly, explaining his motivations for submitting the proposals. He clarified that he had no intention of undermining the company or challenging its leadership. Instead, he hinted that if his proposals failed, he might adjust his stake in the company—either reducing or increasing his holdings, or even seeking greater control.
Some circulating shareholders expressed concerns, noting that the ongoing conflict between Zhou and the current management could harm the company’s long-term prospects. One investor said, “If Zhou’s proposal is not passed, there may be more actions taken. The tension has always been a risk, and it’s not good for the company.†Another suggested that both sides should seek a peaceful resolution rather than continued confrontation.
Analysts also weighed in, urging shareholders to support the current board and management. They argued that completing the three-year growth target would benefit all stakeholders, and that further disputes would only lead to losses for everyone involved.
Chen Baohua emphasized that his voting decisions are based on what is best for the company’s future and its shareholders. He acknowledged Zhou’s contributions to the pharmaceutical industry but stressed that Huahai Pharmaceutical is strong enough to compete and thrive regardless of internal challenges.
Reiterating the company’s strategic vision, Chen stated that from 2008 to 2010, Huahai Pharmaceutical will focus on expanding its industrial chains, improving R&D and sales systems, and achieving optimal structural adjustments. He outlined plans to develop two major industrial chains—raw materials and finished drugs—and enhance synergy between them. The company aims to boost efficiency, reduce low-margin products, and increase high-margin offerings, ultimately driving sustainable growth and long-term development.
With these plans in place, Huahai Pharmaceutical is confident that it will enter a new phase of rapid expansion in the coming years.
Sequestering Agents
Sequestering agent is an effective and versatile organic chelate, it can soften the water quality, such as Ca2 +, Mg2 +, Fe3 + metal ions have a strong chelat and scum dispersion force, prevent sediment generated in the process of dyeing and finishing and other dirt scum, equipment and will slowly dissolve and remove sediment silicon scale, calcium soap and oligomer, It can prevent metal salts from re-contaminating various fibers, improve the whiteness, brightness and color fastness of bleached, dyed and printed products, and prevent re-contaminating the white base of printed products and yarn-dyed products. Physical and chemical properties of chelating dispersant. Chelating dispersant plays a very important role in textile printing and dyeing industry.
sequester and chelating, metal ion binding agent, water softening agent
Dymatic Chemicals, Inc. , https://www.dymachem.com