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Home >Press Release

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Tianhe Chemicals Resumes Trading And Presents Detailed Information To Address Groundless Allegations

Date:2014-10-08

      Hong Kong, October 8th, 2014 – Tianhe Chemicals Group Limited (“Tianhe” or ”the Company”; SEHK Code: 1619) today provided further details in response to the enquiries of the Hong Kong Stock Exchange to refute the allegations in the reports put forward by an anonymous entity, and announced that the Company’s shares have been approved to resume trading from Thursday October 9th 2014 at 9.00am. An Announcement was posted with the Hong Kong Stock Exchange and on the Company’s website this evening (HKEx: http://www.hkexnews.hk/listedco/listconews/SEHK/2014/1008/LTN201410081263.pdf; and Tianhe: http://investor-english.tianhechem.com/UploadFiles/2014/10/2014108201510.pdf).

      Mr. Xuan Wei, the Company’s Chief Executive Officer, commented, “Over two decades, Tianhe Chemicals has developed a lubricant additives capability in China that has achieved global leadership; and our customers today include leading companies such as CNPC, Sinopec, Total and JX Nippon. In specialty fluorochemicals (“SFC”), we are one of the few companies in the world capable of utilizing telomerization technology. We are the only company worldwide that has developed the expertise in telomerization technology under moderate temperature and pressure. We underwent extensive due diligence by various professional third parties in the process of bringing on board strategic partners and in completing a recent Hong Kong IPO. A few weeks ago, I was meeting investors on a non-deal roadshow to discuss our interim results in 2014. In short, we have been doing everything a responsible listed company should do.”

      Mr. Wei continued, “Recently, we have been placed in a position where we need to prove our innocence in the face of an attack by anonymous authors who have absolutely no accountability for truth. In both of the reports that Anonymous Analytics (“AA”) has issued on our Company, they have twisted facts, interwoven fabricated documents, and sought to wholly mislead investors in an emotional and aggressive fashion, for likely direct or indirect short term financial gain. In the face of these egregious allegations against our Company, we are committed to providing our investors with full transparency, and the detailed rebuttals we have prepared underscore this. We have endeavoured to provide as much disclosure as possible, which has been fully vetted by our relevant regulators, and we are fully accountable for the accuracy and completeness of the information we presented.”

      The following summarises the salient points outlined in the most recent Announcement we have made:

      Accounting and Tax Matters

      •  AA has challenged the veracity of the Company’s financial statements citing filings allegedly obtained by an unnamed “professional market body” and based on one-sided and unreliable online information that did not list the Company as a top taxpayer in the city or county where our relevant subsidiaries are located.

      •  With respect to its financial statements, the Company has provided its filings from the Administration for Industry & Commerce (“AIC”) that match its audited financial statements in all material respects.

      •  At the same time, the Company has established the clear use of forgery and falsification in the documentation that AA has set forth.

      •  Regarding the taxes that the Company has paid, tax payment confirmations from the PRC tax authorities have been provided and tax receipts will be made available for inspection by the Company’s registered shareholders.

      Specialty Fluorochemicals R&D, Markets and Customers

      •  The Company has invested significantly in overcoming complex technical barriers to produce SFC products with innovations led by some of the foremost scientists in the world. These SFC products serve as essential property-enhancing raw materials for a wide array of end markets globally, and their worldwide demand is reflected in the Company’s growth, profitability and the fact that customers typically pre-pay for the Company’s products.

      •  R&D is at the heart of the Company’s operations built over two decades and has contributed to its market leading position today. Over the last decade that the Company has developed its SFC business, its technology competence has outpaced sales capability, particularly with respect to direct sales capabilities into the fragmented end markets and the dispersed geographies into which the Company’s SFC products are sold or utilized.

      •  As such, and as outlined in the Company’s IPO prospectus, the Company works with trading companies with sector expertise and customer networks to help sell its products. At the same time, the Company is building its own sales capability, and is also in the process of establishing direct sales to multi-national players.

      Mr. Wei concluded, “On behalf of myself, and our 1,400 employees who have worked diligently for over two decades to bring Tianhe to where it is today, we appreciate the patience of all of our stakeholders and thank you for your resolute faith in our Company. We are very much focused on putting this episode behind us so that we can return to serving our investors, and continuing to build our Company globally as a leading specialty chemicals producer.”
 

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      About Tianhe Chemicals Group Limited

      Tianhe is a specialty chemicals producer in China with leading market positions in lubricant additives and specialty fluorochemicals.? The Company is the largest lubricant additives producer headquartered in China and one of the top players in the world supplying to a number of the leading global lubricant oil producers.? In addition, Tianhe is also one of the few companies globally capable of producing specialty fluorochemicals, which have applications in a wide array of end markets around the world.

Diana Footitt 陳靜薇 Vanita Sehgal
Tel: (852) 2861 3488 Tel: (852) 2861 3266 Tel: (852) 2861 3227
Mob: (852) 9183 0667 Mob: (852) 9087 5761 Mob: (852) 9103 4626
diana.footitt@artemisassociates.com agnes.chan@artemisassociates.com vanita.sehgal@artemisassociates.com

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