Other Listed Chemical Companies May Be Affected

Other Listed Chemical Companies May Be Affected

On March 21 afternoon, an explosion occurred at Tianjiayi Chemical Co., Ltd. in Jiangsu Province, which has drawn great attention. The explosion has affected a number of listed companies, among which are Jiangnan High Polymer Fiber, Anoky Group, Lianhetech, Hifichem, and Wuzhong Group. How much will they be affected?

The companies above issued announcements explaining the situation on March 22.

Jiangnan High Polymer Fiber

Jiangyin Nijiaxiang Textile Co., Ltd. used to do business with Jiangnan High Polymer Fiber. Jiangyin Nijiaxiang Textile is a company of Ni Chengliang, real owner of Tianjiayi Chemical Co., Ltd.

According to Jiangnan High Polymer Fiber’s announcement, Nijiaxiang Textile is a buyer of its dacron top. Nijiaxiang purchases about 60 tons of dacron top from the company every month, accounting for about 3% of the company's monthly sales volume. Until the announcement was issued, Nijiaxiang owed the company 3.1219 million yuan. At present, the company has not been informed that Nijiaxiang has the legal right to default.

Anoky Group

Anoky Group is located in the industrial park in Xiangshui County, Jiangsu Province. The company has shut down due to the explosion and out of safety concern.

Anoky Group is 2.2 kilometers away from Tianjiayi Chemical. The explosion shattered the windows of Anoky’s office building, but no casualty or damaged facility was reported.

The share price of Anoky Group was little influenced, and it raised slightly on March 22.

Lianhetech

Jiangsu Lianhetech Co., Ltd. and Lianhetech (Yancheng)Co., Ltd., two subsidiaries of Lianhetech, are in the same industrial park as Tianjiayi Chemical. According to preliminary statistics, two employees were killed and several were injured by the blast wave. Part of facilities in these two subsidiaries were damaged, and companies have shut down for the time being.

Hifichem

According to Hifichem’s announcement, the company's important intermediates are self-produced, so the company’s main product  will not be affected by external suppliers. In 2015, Tianjiayi Chemical was one of the top five suppliers of the company, but the proportion of total procurement from 2016 to 2018 has decreased, which will not affect the company’s operation.

Wuzhong Group

According to Wuzhong Group’s announcement, its wholly-owned subsidiary, Henglida Technology Chemical Co., Ltd. is located in the same industrial park as Tianjiayi Chemical. The explosion damaged the company’s windows and doors, and injured some employees. The treatment and settlement for these employees are under way.

The financial report shows that the income of Henglida in 2017 was 650 million yuan, accounting for 21.98% of the listed company's income in the same period; the net profit was 83.81 million yuan, accounting for 62.97 percent of the listed company's net profit in the same period.

Wuzhong Group said, “We must work together with the local government. And Henglida have shut down for the time being out of  employee security and work safety.”

The share price of Wuzhong Group raised slightly by 0.48% on March 22.