| Warning notice date: December 21, 2023 |
|---|
| title | Decision [2023] No. 25 on Issuing Warning Letter to KPMG Huazhen Certified Public Accountants (Special General Partnership), Zhang Huan, Zhang Yang, Fu Qiang and Wang Ting |
| Relevant regulations | Basic Standards for Authentication Business of Chinese Certified Public Accountants, Auditing Standards for Chinese Certified Public Accountants No. 1101 - General Objectives of Certified Public Accountants and Basic Requirements for Audit Work, and Administrative Measures for Information Disclosure of Listed Companies |
| Document batch number | Liaoning Securities Regulatory Bureau [2013] No. 25 |
| Reason for approval | In April and June 2023, Shenyang Chemical Industry Co., Ltd. (hereinafter referred to as Shenyang Chemical Industry) disclosed the Prompting Announcement of Early Accounting Error Correction and Retroactive Adjustment, and the Announcement of Early Accounting Error Correction and Retroactive Adjustment. The wholly-owned subsidiary Shenyang Paraffin Chemical Co., Ltd.'s inventory and cost accounting were not standardized and the long-term asset impairment was insufficient, And make retroactive adjustment to the accounting errors from 2018 to 2021. In the annual report audit project of Shenyang Chemical from 2018 to 2021, you did not properly evaluate the company's major misstatement risk, the letter and inventory monitoring procedures were not implemented in place, and did not identify the company's inventory, operating costs, long-term asset impairment and other misstatements. |
| Approval content | Our bureau decided to take the regulatory measures of issuing warning letters to KPMG and the certified public accountants Zhang Huan, Zhang Yang, Fu Qiang and Wang Ting, and record the relevant information in the integrity file of the securities and futures market. |
| Handled by | Liaoning Securities Regulatory Bureau |
|
| Date of notice of criticism: November 15, 2023 |
|---|
| title | Shenyang Chemical Industry Co., Ltd.: Decision on Notification of Criticism and Punishment to Shenyang Chemical Industry Co., Ltd. and Related Parties |
| Relevant regulations | Stock Listing Rules (Revised in 2020), Self regulatory Guidelines for Listed Companies No. 12 - Standards for the Implementation of Disciplinary Actions |
| Document batch number | SZS [2003] No. 1051 |
| Reason for approval | According to the Announcement on Correction and Retroactive Adjustment of Accounting Errors in the Previous Period and the Supplementary Announcement on Correction and Retroactive Adjustment of Accounting Errors in the Previous Period disclosed by the Company on June 28 and July 1, 2023, the Company's subsidiary Shenyang Paraffin Chemical Co., Ltd. (hereinafter referred to as "Shenyang Wax Chemical") found that, From 2018 to 2020, Shenyang Wax Chemical Co., Ltd. found that raw materials were not warehoused in time and cost accounting was not standardized. Accordingly, the Company corrected the accounting errors in the financial statements from 2018 to 2021, in which the total profits of 2018, 2019 and 2020 were reduced by 108 million yuan, 185 million yuan and 46 million yuan respectively, and the adjusted amounts accounted for 67.18%, 26.55% and 8.53% of the total profits before the adjustment. |
| Approval content | 1、 Shenyang Chemical Industry Co., Ltd. will be criticized in a notice; 2、 Sun Zesheng, then the chairman and general manager of Shenyang Chemical Industry Co., Ltd., and Li Zhong, then the chief accountant, were criticized in a notice. |
| Handled by | Shenzhen Stock Exchange |
|
| Date of inquiry announcement: July 14, 2023 |
|---|
| title | Shenyang Chemical: Announcement on Reply to Inquiry Letter of 2022 Annual Report |
| Relevant regulations | |
| Document batch number | Annual Report Query Letter of the Company Department [2023] No. 204 |
| Reason for approval | The Company has received the inquiry letter issued by the Management Department I of Listed Companies of Shenzhen Stock Exchange |
| Approval content | The company is now replying to and announcing relevant inquiries. |
| Handled by | Shenzhen Stock Exchange Listed Company Management Department No.1 |
|
| Warning notice date: May 29, 2023 |
|---|
| title | Decision [2023] No. 8 on Issuing Warning Letter to Shenyang Chemical Co., Ltd., Sun Zesheng, Li Zhong and Zhang Yuchao |
| Relevant regulations | Administrative Measures for Information Disclosure of Listed Companies |
| Document batch number | Liaoning Securities Regulatory Bureau [2013] No. 8 |
| Reason for approval | Shenyang Chemical Co., Ltd., Sun Zesheng, Li Zhong, Zhang Yuchao: On January 31, 2023, Shenyang Chemical Industry Co., Ltd. (hereinafter referred to as Shenyang Chemical Industry or the Company) issued the 2012 Annual Performance Forecast (Announcement No. 2023-003), stating that the net profit attributable to shareholders of listed companies in 2022 was a loss of 1.3 billion yuan - 1.65 billion yuan, and the net profit after deducting non recurring gains and losses was a loss of 1.32 billion yuan - 1.67 billion yuan. On April 21, 2023, your company issued the Announcement on the Revision of the Annual Performance Forecast for 2022 (Announcement No. 2023-007), which said that the net profit attributable to shareholders of the listed company in 2022 was a loss of 1.6 billion yuan to 2 billion yuan, and the net profit after deducting non recurring profits and losses was a loss of 1.62 billion yuan to 20 million yuan. There are differences before and after the disclosure of information on the same matter. On April 29, 2023, the Annual Report of 2022 disclosed by Shenyang Chemical Industry Co., Ltd. showed that the company's wholly-owned subsidiary Shenyang Paraffin Chemical Co., Ltd. (hereinafter referred to as Shenyang Paraffin Chemical) had the situation that raw materials were not warehoused in time and cost accounting data were used irregularly from 2018 to 2020, As a result, some raw materials received by Shenyang Wax Chemical from 2018 to 2020 were not carried forward from advance payment to inventory in time, and some inventory costs used and sold were not carried forward to operating costs in time. At the same time, the above accounting errors caused Shenyang Wahua to withdraw less long-term asset impairment losses in 2019. After correction, the Company's prepayment at the beginning of 2021 will be decreased by 1.026 billion yuan, its inventory at the beginning of 2021 will be increased by 7.9 billion yuan, and its inventory at the end of 2021 will be decreased by 236 million yuan. The fixed assets of the Company at the beginning and end of 2021 will be reduced by 104 million yuan, and the undistributed profits of the Company at the beginning and end of 2021 will be reduced by 340 million yuan. The above financial report information disclosure of the Company is inaccurate. |
| Approval content | Our bureau has decided to take regulatory measures to issue warning letters to Shenyang Chemical, Sun Zesheng, chairman and general manager, Li Zhong, chief accountant, and Zhang Yuchao, secretary of the board of directors, and record them in the integrity file of the securities and futures market. |
| Handled by | Liaoning Securities Regulatory Bureau |
|
| Warning notice date: May 27, 2023 |
|---|
| title | Shenyang Chemical: Announcement on the Company and relevant personnel receiving the decision on administrative supervision measures |
| Relevant regulations | Measures for the Administration of Information Disclosure of Listed Companies |
| Document batch number | Liaoning Securities Regulatory Bureau [2013] No. 8 |
| Reason for approval | On January 31, 2023, Shenyang Chemical Industry Co., Ltd. (hereinafter referred to as Shenyang Chemical Industry or the Company) issued the Performance Forecast for 2022 (Announcement No. 2023-003), stating that the net profit attributable to shareholders of listed companies in 2022 was a loss of 1.3 billion yuan - 1.65 billion yuan, and the net profit after deducting non recurring profits and losses was a loss of 1.32 billion yuan - 1.67 billion yuan. On April 21, 2023, your company issued the Announcement on the Revision of the Annual Performance Forecast for 2022 (Announcement No. 2023-007), which said that the net profit attributable to shareholders of the listed company in 2022 was a loss of 1.6 billion yuan to 2 billion yuan, and the net profit after deducting non recurring profits and losses was a loss of 1.62 billion yuan to 20 million yuan. There are differences before and after the disclosure of information on the same matter. On April 29, 2023, the Annual Report of 2022 disclosed by Shenyang Chemical Industry Co., Ltd. showed that the company's wholly-owned subsidiary Shenyang Paraffin Chemical Co., Ltd. (hereinafter referred to as Shenyang Paraffin Chemical) had not received raw materials in time and used cost accounting data in an irregular manner from 2018 to 2020, As a result, some raw materials received by Shenyang Wax Chemical from 2018 to 2020 were not carried forward from advance payment to inventory in time, and some inventory costs used and sold were not carried forward to operating costs in time. |
| Approval content | Our bureau has decided to take regulatory measures to issue warning letters to Shenyang Chemical, Sun Zesheng, chairman and general manager, Li Zhong, chief accountant, and Zhang Yuchao, secretary of the board of directors, and record them in the integrity file of the securities and futures market. |
| Handled by | Liaoning Securities Regulatory Bureau |
|
| Regulatory attention announcement date: April 14, 2020 |
|---|
| title | Supervision Letter on Shenyang Chemical Co., Ltd |
| Relevant regulations | Stock Listing Rules (Revised in November 2018) |
| Document batch number | The Ministry of Supervision [2020] No. 14 |
| Reason for approval | Board of Directors of Shenyang Chemical Industry Co., Ltd.: On January 22, 2020, your company disclosed the 2019 Annual Performance Forecast, and it is estimated that the net profit attributable to the shareholders of the parent company in 2019 will be between - 450 million yuan and - 380 million yuan. On March 28, 2020, your company disclosed the Revised Announcement of 2019 Annual Performance Forecast, which revised down the net profit attributable to the shareholders of the parent company in 2019 to - 840 million yuan to - 650 million yuan. On April 10, 2020, the 2019 Annual Report disclosed by your company showed that the net profit actually attributable to the shareholders of the parent company in 2019 was -745.7615 million yuan, which was 295.7615 million yuan different from the lower limit of the expected range of the company's 2019 Annual Performance Forecast, and the disclosure of the revised announcement of the performance forecast was not timely. |
| Approval content | The above behaviors of your company violate the provisions of Articles 1.4, 2.1 and 11.3.3 of the Stock Listing Rules (Revised in November 2018) of the Exchange. |
| Handled by | Company Management Department of Shenzhen Stock Exchange |
|
| Regulatory attention announcement date: April 7, 2020 |
|---|
| title | Concern Letter on Shenyang Chemical Co., Ltd |
| Relevant regulations | |
| Document batch number | Concern Letter [2020] No. 44 of the Company Department |
| Reason for approval | The Company received the letter of concern issued by the Company Management Department of Shenzhen Stock Exchange |
| Approval content | Please explain the above issues and submit relevant written materials to our department before April 10. |
| Handled by | Company Management Department of Shenzhen Stock Exchange |
|
| Date of inquiry announcement: April 14, 2016 |
|---|
| title | Shenyang Chemical: Announcement on Reply to the Inquiry Letter of Shenzhen Stock Exchange Annual Report |
| Relevant regulations | |
| Document batch number | |
| Reason for approval | Shenyang Chemical Industry Co., Ltd. (hereinafter referred to as "the Company") recently received the Inquiry Letter on Annual Report of Shenyang Chemical Industry Co., Ltd. from Shenzhen Stock Exchange. |
| Approval content | After receiving the inquiry letter, the company has carefully verified and understood the relevant issues, and has replied to the Shenzhen Stock Exchange in accordance with the relevant requirements. Now we are announcing the relevant situation. |
| Handled by | Shenzhen Stock Exchange |
|
| Announcement date of regulatory attention: January 5, 2016 |
|---|
| title | Shenyang Chemical Industry: Announcement on Reply to Attention Letter of Shenzhen Stock Exchange |
| Relevant regulations | |
| Document batch number | Concern Letter [2015] No. 553 of the Company Department |
| Reason for approval | Shenyang Chemical Industry Co., Ltd. (hereinafter referred to as "the Company") received the Concern Letter on Shenyang Chemical Industry Co., Ltd. (Concern Letter [2015] No. 553) (hereinafter referred to as "the Concern Letter") from the Company Management Department of Shenzhen Stock Exchange on the evening of December 29, 2015. Recently, our department has received complaints from investors about the company, including the following: (1) The Supplementary Agreement between the Company and China Blue Star (Group) Co., Ltd. on the Purchase of Assets by Issuing Shares issued by your company on July 7 shows that the two parties signed the agreement in Beijing on July 1, 2015, but your company only issued relevant announcements on July 7; (2) The share price of listed companies fell by 4 limits in the four trading days during the above period, and investors questioned that the company's executives were suspected of using undisclosed information for trading. |
| Approval content | Our department is concerned about this. The company is requested to give a detailed explanation, reply to our department in writing before December 31 and perform the corresponding information disclosure obligations. The company attaches great importance to this. Through the verification of relevant matters, the relevant information is now announced. |
| Handled by | Company Management Department of Shenzhen Stock Exchange |
|
| Illegal announcement date: June 4, 2015 |
|---|
| title | Shenyang Chemical Industry Co., Ltd. Announcement on Illegal Stock Trading by Senior Managers |
| Relevant regulations | Rules on the Management of the Shares of the Company Held by Directors, Supervisors and Senior Managers of Listed Companies and Their Changes |
| Document batch number | |
| Reason for approval | Li Chunming's securities account bought 20000 shares of the company on May 15, 2015, with a transaction price of 9.4 yuan and a transaction amount of 188000 yuan. On May 29, 2015, 5000 shares of the company were sold successively, the average transaction price was 9.11 yuan/share, the transaction amount was 45526 yuan, and the transaction loss was 1474 yuan. Li Chunming explained that his relatives used Li Chunming's securities account to buy and sell the company's stocks without Li Chunming's knowledge, which led to short-term trading. According to the company, as of the date of this announcement, Li Chunming, the deputy general manager of the company, holds 15000 shares of the company. Its unregistered shareholding and selling of shares violated the relevant provisions of the CSRC and Shenzhen Stock Exchange. |
| Approval content | In view of the violation of the CSRC's Rules on the Management of the Shares of the Company Held by Directors, Supervisors and Senior Managers of Listed Companies and Their Changes, and other relevant provisions of the CSRC and the Exchange, Mr. Li Chunming promised that he would restrict himself and his relatives to participate in stock trading in strict accordance with the relevant provisions of listed companies in the future. As no income was generated from the sale of shares this time, Li Chunming and his relatives did not know the important undisclosed information of the company in advance, which was not a transaction using insider information. There was no undisclosed sensitive information that affected the fluctuation of the company's share price at the trading time. The company will learn the lesson from the illegal trading of company shares by senior executives, further strengthen the education and training of directors, supervisors and senior managers, and prevent such incidents from happening again. |
| Handled by | Shenzhen Stock Exchange |
|
| Announcement date of rectification notice: November 17, 2007 |
|---|
| title | Rectification Report of Shenyang Chemical Co., Ltd. on Special Activities to Strengthen the Governance of Listed Companies |
| Relevant regulations | Company Law, Securities Law |
| Document batch number | LZJGSZ [2007] No. 91 |
| Reason for approval | 1. Some systems of the company need to be revised. 2. Some records of the board of directors and the general meeting of shareholders of the company are incomplete, and some records of the work of the board of directors have errors. 3. The Company shall establish special committees under the Board of Directors as soon as possible and formulate various supporting systems. |
| Approval content | At present, our company's special governance activities have entered the stage of rectification and improvement, the rectification plan has been basically implemented, and most of the corporate governance issues raised by the self inspection and Liaoning Securities Regulatory Bureau have been rectified and implemented. Through this special activity of corporate governance, the company rectified some defects and problems found in governance, improved the corporate governance structure and various systems. Through the training and learning in this special activity, the company's directors, supervisors and senior managers have a deeper understanding of the importance of improving the corporate governance structure and internal control system, It is beneficial for the company to further improve its governance level. The company will take this opportunity to further improve the corporate governance system, further improve the company's awareness of standardized operation and governance level, and promote the rapid development of the company in strict accordance with the requirements of the Company Law, the Securities Law and relevant laws and regulations of the CSRC. |
| Handled by | Liaoning Securities Regulatory Bureau |
|
| Announcement date of rectification notice: December 26, 2003 |
|---|
| title | Report on Rectification of Relevant Issues Raised in the Inspection of Shenyang Securities Regulatory Office of China Securities Regulatory Commission |
| Relevant regulations | Notice on Relevant Issues of Listed Companies Providing Guarantees for Others, Governance Standards for Listed Companies |
| Document batch number | SZJGSZ [2003] No. 81 |
| Reason for approval | The company's guarantee did not perform the corresponding legal procedures; The data of "three meetings" were not kept completely; The power of attorney is not standardized; The Articles of Association is not perfect; The Rules of Procedure of the Board of Directors are inconsistent with the Articles of Association; "Five separation" is not thorough; Incomplete and untimely information disclosure; Improper accounting treatment; Uncontrolled management of holding subsidiaries |
| Approval content | Shenyang Securities Regulatory Office of China Securities Regulatory Commission inspected our company from November 4 to 10, and required our company to rectify within a time limit with the document Notice on Rectification Matters within a Time Limit of Shenyang Chemical Industry Co., Ltd. (SZJSXZ [2003] No. 81, hereinafter referred to as "Rectification Notice"). The Board of Directors of the Company has carried out a detailed self-examination of the problems pointed out in the Rectification Notice and proposed solutions. |
| Handled by | Shenyang Securities Regulatory Office |
|
| Public condemnation announcement date: September 4, 2001 |
|---|
| title | Announcement on Publicly Condemning Fifteen Listed Companies Including Shenyang Chemical Co., Ltd |
| Relevant regulations | Listing Rules of Shenzhen Stock Exchange |
| Document batch number | |
| Reason for approval | Failure to publish the interim performance warning announcement of 2001 as required |
| Approval content | In the disclosure of the interim report in 2001, Guangxia (Yinchuan) Industrial Co., Ltd. failed to publish the announcement of the interim loss in 2001 as required. Fujian Zhongfu Industrial Co., Ltd., Shenzhen Special Economic Zone Real Estate (Group) Co., Ltd., Xiamen Xinda Shares Co., Ltd., Jiujiang Chemical Fiber Co., Ltd., Shenzhen Tiandi (Group) Co., Ltd China Wuyi Industry Co., Ltd., Jilin Paper Industry Co., Ltd., Ningxia Ninghe National Chemical Co., Ltd., Nanfang Building Materials Co., Ltd., Bitech Holdings Co., Ltd., Shenyang Chemical Co., Ltd., Jiangxi Gannan Fruit Industry Co., Ltd., Sichuan Emei Diesel Engine Co., Ltd Fourteen companies, including Chengdu Shudu Building Co., Ltd., experienced a sharp decline in their interim performance in 2001, but the company failed to publish the interim performance warning announcement in 2001 as required. The behaviors of the above 15 companies have seriously violated the provisions of the Shenzhen Stock Exchange Stock Listing Rules (hereinafter referred to as Listing Rules, Articles 4.1 and 6.8) and SZS (2001) No. 69 Notice on Doing a Good Job in the 2001 Interim Report. In order to fully protect the interests of investors in the securities market and uphold the principles of openness, fairness and impartiality in the securities market, in accordance with the provisions of Article 12.1 of the Listing Rules, the Exchange decided to publicly condemn Guangxia (Yinchuan) Industrial Co., Ltd. and other 15 companies mentioned above. |
| Handled by | Shenzhen Stock Exchange |
|
