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[Introduction] A sudden safety accident at Hengbang Co., Ltd. has resulted in the deaths of 3 people.

China Fund News reporter Zhao Xinliang

On the evening of August 12, Hengbang Co., Ltd. issued an announcement stating that recently, the copper outlet of the side-blowing furnace of the company's No. 1 Refining Company suddenly splashed, causing injuries to people on site.

After the accident, the company immediately activated the emergency plan and carried out rescue, and rushed the injured to the hospital for treatment as soon as possible.

As of the date of disclosure of this announcement, three employees died during hospitalization; three are currently receiving hospitalization and are in stable condition; and 11 employees with less serious injuries have been discharged from the hospital.

Hengbang Co., Ltd. stated that at present, the cause of the accident and the cause of death are still under further analysis and investigation. The company expresses deep condolences to the unfortunate victims and deep sympathy to the injured employees and the families of the victims. The aftermath of the accident is being carried out in an orderly manner.

Regarding the impact of the accident on the company, Hengbang Co., Ltd. stated that the Shandong Provincial People's Government has established an investigation team and the accident is still under investigation. The company has not yet received the accident investigation report and related handling opinions issued by the accident investigation team, and is unable to accurately estimate the direct economic losses caused by the accident.

After the accident, the smelting company involved stopped production for rectification and resumed production after the investigation department issued a conclusion and the rectification was completed and accepted.

The operating income of Smelting Company No. 1 in 2023 was 13.091 billion yuan, accounting for 19.96% of the company's consolidated operating income; the net profit contributed in 2023 was 95.137 million yuan, accounting for 19.52% of the company's net profit and 18.45% of the company's consolidated net profit attributable to shareholders of listed companies.

Hengbang shares said that the production and operation of other units of the company are proceeding normally. According to the company's preliminary estimate, this accident will not have a significant adverse impact on the company's production, operation and performance. The company will minimize the losses caused by this accident through subsequent production adjustments.

The company further stated that after the accident, the company attached great importance to it and spared no effort to treat the injured at all costs to minimize casualties; quickly carried out emotional counseling and follow-up work for the family members, organized forces to rescue the injured and comfort their families; comprehensively checked for safety hazards in production, conscientiously rectified them, and learned lessons; and actively cooperated with the investigation department to speed up the accident investigation.

Hengbang Co., Ltd.'s main business is gold smelting. In 2019, it became a wholly-owned subsidiary of Jiangxi Copper.

The company's official website shows that in 2023, Hengbang Co., Ltd. achieved revenue of 65.5 billion yuan, net profit of 480 million yuan, and paid 830 million yuan in taxes. It has been listed in the Fortune China 500 list for twelve consecutive years and has been ranked first in the list of China's top ten gold smelting companies announced by the China Gold Association for nine consecutive years.

Not long ago, Jiangxi Copper Group, the indirect controlling shareholder of Hengbang Co., Ltd., was issued a warning letter by the Shandong Securities Regulatory Bureau for failing to fulfill its promised matters.

On August 2, Hengbang Co., Ltd. issued an announcement stating that Jiangxi Copper Group recently received the "Decision on Issuing a Warning Letter to Jiangxi Copper Group Co., Ltd." issued by the Shandong Securities Regulatory Bureau.

Jiangxi Copper Group made a commitment to avoid competition in the same industry when Jiangxi Copper acquired the controlling stake of Hengbang Shares in 2019. It promised that after the completion of the transaction, the company and the companies controlled by the company would resolve the business that competed or potentially competed with the listed company and its subsidiaries within the next 60 months.

As of now, the commitment has expired and Jiangxi Copper Group has not completed the promised matters.

In response, the Shandong Securities Regulatory Bureau stated that Jiangxi Copper Group's behavior constituted a breach of commitment as stipulated in Article 15 of "Guidelines for the Supervision of Listed Companies No. 4 - Commitments of Listed Companies and Their Related Parties".

According to Article 17 of the "Guidelines for the Supervision of Listed Companies No. 4 - Commitments of Listed Companies and Their Related Parties", it is decided to take administrative supervision measures against Jiangxi Copper Group by issuing a warning letter and record it in the securities and futures market integrity file database. Jiangxi Copper Group should actively take measures to fulfill its commitment obligations as soon as possible and submit a written report within 30 days from the date of receipt of this decision.

Editor: Captain

Review: Chen Mo

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