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Financial Associated Press, September 25th news (Reporter: Wu Chao) Due to the failure to timely disclose related-party transactions that accepted financial support from a major shareholder and had an annualized interest rate higher than the market quote rate, today danhua chemical technology (600844.SH) and several relevant responsible persons received a "warning letter" issued by the Jiangsu Securities Regulatory Bureau.

It is worth noting that Danhua chemical technology has been subject to administrative penalties or regulatory measures several times in recent years due to information disclosure issues. In addition, among the individuals who received the "warning letter" this time, two executives were promoted in April this year.

According to the content of the "warning letter," it was found that in order to alleviate the financial difficulties of danhua chemical technology, since August 2022, the original controlling shareholder of danhua technology, now the second largest shareholder Jiangsu Danhua Group Co., Ltd. (referred to as "Danhua Group"), has successively provided 17 loans totaling 0.3315 billion yuan to danhua chemical technology and its holding subsidiaries and affiliate companies. Currently, 0.1805 billion yuan has been repaid, leaving a loan balance of 0.151 billion yuan.

The above financial transactions constitute related-party transactions, but the company did not timely perform the approval procedures and information disclosure obligations for related-party transactions. In addition, the company did not disclose in the 2022 annual report and the 2023 semi-annual report the related-party transactions formed by the loans provided by danhua group during the reporting period.

Until April 2, 2024, danhua chemical technology convened a board of directors meeting to retrospectively approve the acceptance of financial support and related-party transactions totaling 0.151 billion yuan that have not yet been repaid, and disclosed the "Notice of Accepting Financial Support and Related Transactions."

According to the announcement released in April, danhua chemical technology disclosed that from August 2023 to the present, Danhua Group has provided financial support amounting to 0.151 billion yuan to the company, with an annualized interest rate between 6.5-7%, which is higher than the loan market quoted rate for the financial support accepted by the company.

Jiangsu Securities Regulatory Bureau believes that Li Guofang, then chairman of Danhua Chemical Technology, Sun Zhaohui, then general manager, Cheng Guojun, secretary of the board of directors, Jiang Yongfei, then director and financial head, Ding Weidong, then director, Zhou Jinsong, then director, Yang Jun, then chairman of the supervisors, Yang Jun, then chairman of the supervisors, remains cautious and diligent, violating the 'Administrative Measures for the Disclosure of Information by Listed Companies'. Therefore, it is decided to take administrative regulatory measures by issuing a warning letter to the company and the above-mentioned individuals, and to record them in the integrity file of the securities and futures market.

This is not the first time that Danhua Chemical Technology has been punished for information disclosure issues. In May of this year, the Shanghai Stock Exchange issued regulatory warnings to Danhua Chemical Technology, then secretary of the board of directors, Cheng Guojun, and then financial head Jiang Yongfei for the same incident.

In addition, in March 2021, the Shanghai Stock Exchange issued a decision on 'Notification and Criticism of Danhua Chemical Technology Co., Ltd. and Relevant Persons in Charge', citing inaccurate financial data disclosure in the 2019 annual report. Subsequently, in August 2021, the company received another decision from the Jiangsu Securities Regulatory Bureau to issue a warning letter as a regulatory measure.

Caijing media reporters have also noticed that among these executives considered by the China Securities Regulatory Commission to have 'failed to diligently fulfill their duties', Cheng Guojun and Zhou Jinsong are still current members of the board of directors. Cheng Guojun, who has been successively subjected to regulatory measures by the exchange and the CSRC, continues to serve as the secretary of the board of directors. In April of this year, after board elections, he was promoted from vice president to president, while Zhou Jinsong obtained the position of vice president in that election.