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Open Letter From Mr. Xuan WEI, Chief Executive Officer, Tianhe Chemicals Group Ltd.


      To All our Stakeholders

      Over the past few weeks, a faceless entity has made egregious allegations in two separate reports against our company that has seriously affected the market order and the legitimate interests of investors. Clearly, the authors and backers of the reports are seeking to profit from downward manipulation of our stock price. I feel it is imperative for me to directly communicate to all of you at this time as we resume trading.

      Through over 22 years of hard work and dedication, we have made great achievement in both business segments of lubricant additives and specialty fluorochemicals. On lubricant additives side, we have developed a global leading production and R&D capability; and our customers today include CNPC and Sinopec as well as global multinational lubricant oil manufacturers such as Total and JX Nippon. In specialty fluorochemicals, we are one of the few companies in the world capable of utilizing telomerization technology. We are also the only company worldwide that has developed the expertise in telomerization technology under moderate temperature and pressure. Meanwhile, we have undergone extensive and thorough due diligence by various professional third parties in the process of bringing on board strategic partners and in completing a recent Hong Kong IPO.

      I clearly understand that we have chosen to be a public company and are therefore subject to all market commentators’ opinions. However, those anonymous authors who have absolutely no accountability for truth attacked us with malicious and blatantly wrong allegations, attempting to ruin the confidence of market and seriously damage the interests of investors. Thus, we have been placed in a position where we need to prove our innocence in the face of the attack, in order to protect the legitimate interests of our investors.

      We are committed to providing our investors with full transparency, and we have greatly appreciated all of our stakeholders’ patience as we prepared detailed rebuttals to the groundless accusations. We hope that once you read our full Announcement (http://www.hkexnews.hk/listedco/listconews/SEHK/2014/1008/LTN201410081263.pdf), you will see that we have provided you with as much disclosure as possible. Unlike the report of the anonymous entity, what we present to you has been fully vetted by our relevant regulators, and we are fully accountable for the accuracy and completeness of information we provide.

      Today, I write this letter not only on behalf of myself, but also on behalf of our 1,400 employees who have worked diligently for over two decades to bring Tianhe to where it is currently, on behalf of our leading international scientists, on behalf of our strategic partners, and on behalf of all third party professionals who have stood by us during this time.

      Over our Company’s history, R&D has been at the heart of everything we do. And serving customers based on their needs and meeting their expectations are our corporate culture. The groundless accusations of the anonymous entity have never weakened our confidence, nor affected the normal operation and future development of our business. As what we have strived for in the past, we will and shall continue to serve our customers globally through dedicated R&D efforts and innovations targeting their needs, and more importantly, to maximize our investors’ returns.

      The financial information for the three months ended 30 September 2014 we just voluntarily announced (http://www.hkexnews.hk/listedco/listconews/sehk/2014/1008/LTN201410081293.pdf) further corroborates that our business has not been affected. Carrying on strong momentum as reflected in our interim results, both our sales and gross profit continue to enjoy a considerable growth over the same period last year.

      I thank you for your attention and for your faith in our Company. With that I return to serving our customers and investors, and continuing to build our Company as a global leading specialty chemicals producer.

      Yours Sincerely,
      Xuan WEI
      8 October 2014

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