The stocks of two listed companies in Jiangsu were suspended due to environmental protection issues and were "ST"

"Global Coatings Network News"

"Global Coatings Network News"

On August 13, the two listed chemical companies in Jiangsu, ST Yabang (603188, SH) and ST Huifeng (002496, SZ) issued an announcement stating that because the company's production and operations were affected, the company's stocks had implemented a risk warning on the 14th.

On August 13, the two listed chemical companies in Jiangsu, ST Yabang (603188, SH) and ST Huifeng (002496, SZ) issued an announcement stating that because the company's production and operations were affected, the company's stocks had implemented a risk warning on the 14th.

Because the environmental protection requirements were not up to standard, ST Yabang and ST Huifeng's many subsidiaries were suspended for more than 3 months, which undoubtedly had a greater impact on listed companies.

8 companies under ST Yabang cease production

On August 13, ST Yabang issued an announcement stating that the company’s stock was subject to a risk warning on the 14th and the stock abbreviation was changed to “ ST Yabang", the daily increase and decrease of stock prices are limited to 5%.

As early as May 3 this year, ST Yabang issued an announcement stating that some of the company’s subsidiaries and branches received a notice from the Guannan County Government on April 28, 2018, requesting from April 28, 2018 to 5 On the 10th, all enterprises in Lianyungang Chemical Park stopped production for rectification, carried out self-examination and self-correction of environmental protection issues, and rectified them in place.

ST Yabang’s announcement on August 13 shows that, as of now, 7 subsidiaries and 1 branch in the Chemical Park of Duigougang Town, Guannan County, where ST Yabang is located, have all stopped production, and no company has resumed production as planned.

In this regard, ST Yabang said that the company's board of directors will speed up the resumption of production of all companies.

At present, three companies have completed the rectification in accordance with the rectification requirements of enterprises in the coastal chemical parks of Jiangsu Province.

ST Huifeng's controlling shareholder was released on bail pending trial

ST Huifeng's controlling shareholder was released on bail pending trial

Also on August 13, ST Huifeng issued an announcement stating that the company’s production and operations have been severely affected for 3 months, and the specific resumption time has not been determined.
The company’s stock has been subject to other risk warnings since the opening of the market on August 14.
The abbreviation of the company's stock has been changed from "Huifeng Shares" to "ST Huifeng", and the stock trading day is limited to 5%.
Trading of the company's stocks and convertible corporate bonds will be suspended for one day from the opening of the market on August 13, and trading will resume on the opening of the market on August 14.

Also on August 13, ST Huifeng issued an announcement stating that the company’s production and operations have been severely affected for 3 months, and the specific resumption time has not been determined.
The company’s stock has been subject to other risk warnings since the opening of the market on August 14.
The abbreviation of the company's stock has been changed from "Huifeng Shares" to "ST Huifeng", and the stock trading day is limited to 5%.
Trading of the company's stocks and convertible corporate bonds will be suspended for one day from the opening of the market on August 13, and trading will resume on the opening of the market on August 14.

According to the announcement, on May 10, the company received the "Notice for the Implementation of Production Suspension and Remediation" issued by the Environmental Protection Bureau of Dafeng District, Yancheng City, requiring the company to implement production suspension and remediation in other production workshops except for the environmental protection workshop, and the resumption of production must be inspected and accepted.
The company is implementing rectification work in accordance with the opinions of the environmental protection department, and all rectification projects are proceeding in an orderly manner as planned.

According to the announcement, on May 10, the company received the "Notice for the Implementation of Production Suspension and Remediation" issued by the Environmental Protection Bureau of Dafeng District, Yancheng City, requiring the company to implement production suspension and remediation in other production workshops except for the environmental protection workshop, and the resumption of production must be inspected and accepted.
The company is implementing rectification work in accordance with the opinions of the environmental protection department, and all rectification projects are proceeding in an orderly manner as planned.

Earlier on April 21, the official Weibo of the Environmental Protection Department of Jiangsu Province also mentioned that the public security organs have taken compulsory measures such as arrest, criminal detention, and residential surveillance on the 11 ST Huifeng involved in the case in accordance with the law.
In addition, the 11 production lines of ST Huifeng with environmental problems were shut down for rectification, 21 measures were formulated to promote rectification of the problems found out, and the suspected hazardous waste dug up was safely sealed.

Earlier on April 21, the official Weibo of the Environmental Protection Department of Jiangsu Province also mentioned that the public security organs have taken compulsory measures such as arrest, criminal detention, and residential surveillance on the 11 ST Huifeng involved in the case in accordance with the law.
In addition, the 11 production lines of ST Huifeng with environmental problems were shut down for rectification, 21 measures were formulated to promote rectification of the problems found out, and the suspected hazardous waste dug up was safely sealed.

Its related companies and production workshops were suspended.
On August 9, the Shenzhen Stock Exchange issued a letter of concern to ST Huifeng, requesting the company to explain whether there was any situation where it could not resume production on schedule.
In response to this, ST Huifeng disclosed in its response to the letter of concern on the evening of August 12 that the company’s hazardous waste incinerator has been operating normally, and a net reduction of 10022 tons has been achieved through outsourced disposal, self-disposal and comprehensive utilization of the disposed hazardous waste.
In accordance with the relevant regulations and the actual rectification situation, the company has submitted a report on the restoration of production in some workshops to the Environmental Protection Bureau of Dafeng District, Yancheng City.

Its related companies and production workshops were suspended.
On August 9, the Shenzhen Stock Exchange issued a letter of concern to ST Huifeng, requesting the company to explain whether there was any situation where it could not resume production on schedule.
In response to this, ST Huifeng disclosed in its response to the letter of concern on the evening of August 12 that the company’s hazardous waste incinerator has been operating normally, and a net reduction of 10022 tons has been achieved through outsourced disposal, self-disposal and comprehensive utilization of the disposed hazardous waste.
In accordance with the relevant regulations and the actual rectification situation, the company has submitted a report on the restoration of production in some workshops to the Environmental Protection Bureau of Dafeng District, Yancheng City.

It is worth noting that ST Huifeng issued an announcement on the evening of August 6, stating that the company received a notice from the controlling shareholder, chairman and general manager Zhong Hangen that it received the “Release on Guarantee Pending Trial” issued by the branch directly under the Yancheng Public Security Bureau on August 4.
"Decision Letter", the bureau is investigating the 20180315 environmental pollution case, and according to relevant laws and regulations, it has decided to release it on bail pending trial, and the time limit will be calculated from August 4, 2018.

It is worth noting that ST Huifeng issued an announcement on the evening of August 6, stating that the company received a notice from the controlling shareholder, chairman and general manager Zhong Hangen that it received the “Release on Guarantee Pending Trial” issued by the branch directly under the Yancheng Public Security Bureau on August 4.
"Decision Letter", the bureau is investigating the 20180315 environmental pollution case, and according to relevant laws and regulations, it has decided to release it on bail pending trial, and the time limit will be calculated from August 4, 2018.

In response, the media called ST Huifeng, but did not receive a response.

In response, the media called ST Huifeng, but did not receive a response.

However, Jiang Jianguo, an environmental protection industry expert, told the media: “Jiangsu is a major chemical province.
Therefore, the environmental protection inspection has been more vigorous this time.
Related chemical companies have also been greatly affected.
Many companies have been suspended for rectification, which has also caused damage to related industries.
The impact is not small.
However, the intensity of such inspections cannot be mitigated, and the relevant enterprises involved cannot be given resumption of production unless rectification is in place, and punishments must be increased.
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