March 29, 2016
Volume 7 Issue 3
Tianhe Reports Increased Additive Sales
Tianhe Chemicals Group’s lubricant additive business posted “a slight increase in revenue” in 2015, the company reported last week. It also advised that it will miss a deadline for filing audited financial results as well as its annual report.
The company, which is based in Jinzhou city, China, reported unaudited summary results for overall operations in a March 23 filing with the Hong Kong Stock Exchange. The filing did not include numbers for its lube additives segment, but said the segment benefited from an emphasis of business development and penetration of overseas markets.
The filing indicated that Tianhe’s performance was hurt by the suspension of trading of its stock for most of last year, due to a delay in publication of its 2014 annual report, which still has not been reported. Because of the problems Tianhe faced extra acceptance procedures from new customers and lengthier negotiation on expansion of orders by existing customers.
The 2014 annual report was initially delayed because Tianhe’s auditor requested additional information about a few areas of the company’s 2014 results, a step that the company blamed on a 2014 report by shadowy watchdog organization Anonymous Analytics accusing Tianhe of fraud in the lead-up to its 2014 initial public stock offering. Tianhe denied the accusations. Tianhe eventually switched auditors and since September has been cooperating with the new one to certify the 2014 results and working to take additional steps that the stock exchange set as pre-conditions for trading of Tianhe’s stock to resume.
Since February Tianhe has advised that the new auditor is in the final stages of its work on the 2014 report. Last week the company advised that the delay in publishing 2014 results will prevent it from meeting a March 31 deadline to publish audited 2015 results or an April 30 deadline to publish its 2015 annual report, as required by the stock exchange.
In addition to lubricant additives, Tianhe supplies fluorochemicals. Combined operations for both businesses recorded a 41 percent decline in profits for 2015. Management said fluorochemicals sales declined because of slowdowns in economic growth in China and worldwide.