Tianhe Profit Jumped in 2014

Tianhe Chemicals saw its profit jump 30 percent in 2014 to CNY 3.4 billion (U.S. $549 million), according to a filing on the Hong Kong Stock Exchange. The unaudited results did not show a breakdown between the companys lubricant additives and fluorochemicals businesses.

The May 29 filing also advised that trading of the companys stock remains suspended and that it is still working to provide information requested by auditors about equipment purchases for a project that was under construction in 2014. The company did not identify the project but said it fell under the lube additives division.

In the companys most recent previous financial report, results for the first six months of 2014 filed in September, the lube additives business accounted for 45 percent of revenue and 20 percent of gross profit.

A filing showing results for the full year 2014 would normally have been due by March 31 and the companys 2014 annual report by April 30. On March 30, though, Jinzhou, China-based Tianhe announced that results would be delayed because auditors of those results had requested additional information. On that same day the company asked the stock exchange to suspend trading of its shares, which has not yet resumed.

In its latest filing, management said the information being sought by the auditors does not affect results for years prior to 2014 and that the auditors are in the final stages of their work.