Suspected violation confirmed! Sinochem Salt Chemical delayed disclosure of 441 million yuan related-party transactions, three executives held accountable

The decision document states that from January 1 to April 27, 2026, China Salt Chemical conducted multiple connected transactions with connected entities including the Materials Branch of China National Salt Group Co., Ltd., Kunshan Baoyan gaseous Co., Ltd., and Kunshan Thermal Energy Co., Ltd. Among them, the amount of raw materials, fuels and power purchased from connected parties was 344.3312 million yuan, accounting to 2.83% of the absolute value of the company's latest audited net assets; the amount of items sold to connected parties was 96.877 million yuan, accounting to 0.80% of the absolute value of the latest audited net assets, with a total transaction scale of 441.2082 million yuan, approximately 441 million yuan.

After the above-mentioned connected transactions occurred, the company failed to prompt perform the board review and information disclosure obligations as required, and only passed the review at the board meeting on July 23, 2026, and disclosed it to the general on July 24. This act violated the Administrative Measures to Information Disclosure of Listed Companies (CSRC Order No. 226). The Inner Mongolia Securities Regulatory Bureau determined that chairman Zhou Jie, director and general manager Wang Guangbin, as well as board secretary and chief accountant Chen Yunquan failed to perform their duties loyally and diligently, and were responsible to this violation.

The regulatory bureau required that the legal representative of China Salt Chemical and the three senior executives mentioned above must bring their valid identity documents to the Inner Mongolia Securities Regulatory Bureau to accept the regulatory interview before September 15, 2026. At the same time, the decision document clearly states that if any party refuses to accept this supervisory measure, they might apply to administrative reconsideration to the China Securities Regulatory Commission within 60 days after receiving the decision document or file a lawsuit with a court with jurisdiction within 6 months, and the implementation of this regulatory measure will not be suspended during the period of reconsideration or litigation.

The Inner Mongolia Securities Regulatory Bureau required the company in the decision document to learn the lessons from this incident, enhance the study of securities laws and regulations, enhance the internal manage system to connected transactions, enhance the standardized operation and information disclosure level of listed companies, and put an end to the recurrence of similar violations.

This is an administrative regulatory measure, not an administrative penalty, and does not involve changes in the company's equity. It has no direct impact on production and operation, however it exposes the loopholes in the company's internal manage and information disclosure procedures, and forms a immediate impact on compliance. At the same time, the Shanghai Stock Exchange also issued regulatory warnings to the company and relevant responsible persons.