Tianhe Chemical (01619) was cancelled by the Stock Exchange. The Stock Exchange announced that the company’s listing status will be cancelled in accordance with Rule 6.01A of the Listing Rules from 9 am on June 11, 2020.
Tianhe Chemical Co., Ltd. in Jinzhou, Liaoning, once had a market value of 63 billion Hong Kong dollars and a profit of nearly 3 billion. Wei Qi, the founder of Tianhe Chemical Group, also became the richest man in the Northeast. According to the latest announcement, net profit plummeted 77% to 131 million yuan in 2018.
Listed for more than 5 years and suspended for 4 years
On June 20, 2014, the halo of Trina Chemical’s largest lubricant additive manufacturer on the mainland landed on the Hong Kong Stock Exchange. What is more astounding is that it has been listed for less than 5 years and Trina Chemical has been suspended for 4 years.
However, only two months after its listing, Tianhe Chemical was attacked by Anonymous Analytics, an American short-selling agency, accusing it of allegedly exaggerating sales data, paper transactions with major customers, and financial fraud, the largest ever One of the stock market frauds is worth zero.
In March 2015, Tianhe Chemical was suspended again because it could not submit its 2014 performance report on time. In November 2015, the Hong Kong Stock Exchange imposed resumption conditions on the company, including the announcement of all unannounced financial results required by the listing rules. Since then, due to the inability to obtain permission from the Hong Kong Stock Exchange, Trina Chemical's 2015-2018 annual report and interim results have not been released on time, and trading has been suspended so far.
During the period, the Hong Kong Securities Regulatory Commission's investigation of Tianhe Chemical's alleged financial fraud has been fully launched. Huge fines were issued to the three sponsors of the Tianhe Chemical IPO. On March 14, 2019, the Hong Kong Securities Regulatory Commission imposed a fine of HK$128 million and HK$224 million on Merrill Lynch and Morgan Stanley, and HK$375 million on the joint sponsor UBS because of a violation of the sponsor’s rules when Tianhe Chemical provided listing sponsorship services. , While suspending UBS Securities Hong Kong’s one-year eligibility.
Delisting process
On March 26, 2015, Tianhe Chemical's shares were suspended from trading.
On May 25, 2017, the Hong Kong Securities Regulatory Commission exercised its powers in accordance with Article 8(1) of the Securities and Futures (Listing on the Stock Market) Rules, instructing the Stock Exchange to suspend trading in the company’s shares.
According to Rule 6.01A of the Listing Rules, if the company fails to resume trading on or before July 31, 2019, the Exchange may delist the company. After consulting the SFC, the Exchange agreed to suspend the delisting of the company until October 31, 2019.
On October 31, 2019, the company failed to fulfill all the resumption conditions imposed by the Stock Exchange and resumed trading.
On December 20, 2019, the Listing Committee decided to cancel the listing status of the company's shares on the Stock Exchange in accordance with Rule 6.01A of the Listing Rules.
On January 3, 2020, the company sought to review the listing committee’s ruling by the listing review committee.
On May 29, 2020, the Listing Review Committee maintained the Listing Committee’s decision to cancel the company’s listing status.
According to this, the Stock Exchange will cancel the company's listing status from 9 am on June 11, 2020.
The Stock Exchange has requested the company to publish an announcement explaining the cancellation of its listing status. The Stock Exchange recommends that shareholders of the company should seek appropriate professional advice if they have any questions about the impact of delisting.
About Tianhe Chemical
Tianhe Chemical Group is a company mainly engaged in the research and development, production and sales of fine chemical products. Its headquarters is located in Jinzhou City, Liaoning Province. The main products are two series of lubricant additives and special fluorides, including more than 200 kinds of fine chemical products.
It has diversified series of product research and development, production capacity and a variety of products to fill the domestic production gap. It is a large domestic lubricant additive manufacturer. The additive series includes detergents, dispersants, pour point depressants, antioxidants, anti-oxidant and anti-corrosion agents, extreme pressure anti-wear agents, a total of more than 80 kinds of products used in high-grade gasoline Motor oil, diesel oil, gear oil, hydraulic oil, rail oil, metal processing oil, industrial oil, anti-rust oil, metal processing oil, transformer oil, emulsion explosives, etc.
There are more than 30 kinds of fluoride and post-treatment products, bringing a breakthrough upgrade to China's clothing industry and coating industry.
The company has offices in Beijing, Shanghai, Shenyang and other cities, and its business scope covers the whole country and more than 20 countries and regions in the world. The official website claims that it is a first-level network supplier of Sinopec and PetroChina, and a base of science and technology support projects of the Ministry of Science and Technology.
