Jutal Oil Ser (03303.HK) announced on June 13 that the board of directors of the company noted on June 13, 2024 that the Office of Foreign Assets Control ("OFAC") of the US Department of the Treasury has designated Jutal's wholly-owned subsidiary, Penglai Jutal Ocean Construction Heavy Industries Co., Ltd. ("Penglai Jutal"), in a list of specially designated nationals ("SDN List").
According to information available on the website, the company further understands that Section 1(a)(vi)(B) of Executive Order 14024 of April 15, 2021 prescribes that property and interests in property of any person who provides, or attempts to provide, material support, sponsorship, or financial, material, or technological support or goods or services in support of any person whose property and interests in property are blocked pursuant to the Order, and who is a United States person, or within the United States, or who is within the possession or control of any United States person, shall be blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in. Penglai Jutal is mainly engaged in the design, manufacturing, installation and maintenance of offshore oil and gas production and development facilities, port machinery, petrochemical equipment and steel structures; maritime logistics services as well as dock and warehousing services. The company is not aware of any assets or business in the United States. The group's current customers may include US persons, but the group's preliminary rough assessment or involvement may not be significant.
Although the company is conducting further assessments on the impact of Penglai Jutal's listing on the OFAC's SDN list, the company's preliminary assessment is that it may have potential adverse impact on the group's business and prospects. The company will continue to monitor and follow up on the subsequent development of the event, further analyze and evaluate the potential impact of the matter on the company, and continue to communicate with all relevant parties to do a good job in response work. The company will make further announcements when deemed appropriate.
The company has submitted an application to the Stock Exchange for the resumption of trading in the Company's shares with effect from 9:00 a.m. on Friday, June 14, 2024.