On October 13 after market close, Hangzhou Grascent Co.,Ltd. (SZ301688, share price 38.86 yuan, market capitalization 5.181 billion yuan) announced that the company's board of directors received a proposal from Chairman Lu Wencong that same day regarding the formulation of a profit distribution plan for the third quarter of 2026 and accumulated undistributed profits, proposing a cash dividend of 10 yuan per 10 shares (tax included) to all shareholders.
The company listed on the ChiNext board on September 2 this year, with its share price surging on the first day of trading. As of the close on October 13, the company's share price had risen approximately 47.59% from its issue price.
According to the announcement, in order to actively reward the majority of investors, continuously enhance the company's investment value, and boost investor confidence, in accordance with the provisions of the "Regulatory Guidelines for Listed Companies No. 3 — Cash Dividends of Listed Companies," the "Articles of Association," and the "Three-Year Shareholder Dividend Return Plan After Listing," Chairman Lu Wencong proposed that, subject to compliance with relevant laws and regulations and the profit distribution policies stipulated in the "Articles of Association," based on the total share capital on the equity registration date for the future implementation of the profit distribution plan, a cash dividend of 10 yuan per 10 shares (tax included) be distributed to all shareholders, with no bonus shares, no capitalization of capital reserves, and no other forms of profit distribution.
The specific profit distribution plan will be formulated by the board of directors in accordance with the company's financial situation for the third quarter of 2026, accumulated undistributed profits, cash flow conditions, and the company's development plans, within the scope authorized by the shareholders' meeting, and will fulfill approval procedures and information disclosure obligations in accordance with regulations. Chairman Lu Wencong has committed to actively promoting the company to convene a board meeting to review this matter and will vote in favor at the relevant meeting.
The company noted that the aforementioned profit distribution matter is subject to uncertainty as it requires the completion of relevant approval procedures in accordance with regulations before implementation, and reminds investors to be aware of investment risks.
On September 2 this year, Hangzhou Grascent listed on the Shenzhen Stock Exchange's ChiNext board. According to the listing announcement, the company's issue price was 26.33 yuan per share, corresponding to a price-to-earnings ratio of 19.8 times. On the first day of trading, the company's share price once climbed to 72 yuan per share before fluctuating downward, closing at 38.86 yuan per share as of October 13.
The prospectus shows that since its establishment, Hangzhou Grascent has been focused on the research and development, production, and sales of semi-synthetic and fully synthetic fragrances, forming three product series: turpentine, cedarwood oil, and fully synthetic fragrances. Specific products mainly include nearly 40 subcategories such as sandalwood, methyl cedryl ketone, and damascone series, primarily used as raw materials for formulating daily chemical essences.
The company is a pioneer and important enterprise in China's fragrance industry, a "specialized, refined, distinctive, and innovative" enterprise in Zhejiang Province, one of the top ten enterprises in China's light industry fragrance sector, and a national high-tech enterprise, possessing more than 20 invention patents and having participated in drafting 5 national standards.
In terms of performance, the company's revenue and net profit have grown steadily in recent years. From 2023 to 2025, the company's operating revenue was 735 million yuan, 961 million yuan, and 1.075 billion yuan, respectively, with net profit attributable to the parent company of 93 million yuan, 150 million yuan, and 179 million yuan, respectively. In the 2025 main revenue composition, the fully synthetic series accounted for 46.85%, the turpentine series accounted for 30.43%, and the cedarwood oil series accounted for 20.25%.
The company's chairman is Lu Wencong, and the actual controllers are Lu Wencong and Lu Wei.
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