atgameslegendspinball| The aftermath of the subsidiary's "10 deaths and 1 injury" accident is still pending, Luxi Chemical is accused of having a major defect in internal control over non-financial reporting

editor2024-04-30 00:08:4457

After the release of the investigation report on the "10 dead and 1 injured" accidentAtgameslegendspinball, Luxi Chemical (000830) (SZ000830, share price 11Atgameslegendspinball.22 yuan with a market capitalization of 215Atgameslegendspinball.03 billion yuan) subsidiary accident.AtgameslegendspinballThe aftermath is not over yet.

atgameslegendspinball| The aftermath of the subsidiary's "10 deaths and 1 injury" accident is still pending, Luxi Chemical is accused of having a major defect in internal control over non-financial reporting

On the evening of April 29th, Luxi Chemical announced that after the internal control audit of the company in 2023, Tianzi International Accounting firm (Special General Partnership) (hereinafter referred to as Tianzi International) issued "Luxi Chemical Group Co., Ltd. 2023 Internal Control Audit report" No. 25032 (2024). It is considered that there are major defects in the company's non-financial reports and internal controls related to production safety.

Tiantou International's judgment stems from the accident that occurred in Luxi Chemical subsidiary on May 1 last year. According to the relevant announcement, on the morning of May 1, 2023, an explosion and fire occurred in the hydrogen peroxide device of Liaocheng Luxi hydrogen peroxide New material Technology Co., Ltd. (hereinafter referred to as hydrogen peroxide Company) under Luxi Chemical Company, resulting in 10 deaths and one injury. direct economic loss of 54.4531 million yuan.

A reporter from the Daily Economic News noted that according to the identification standard of internal control defects in non-financial reports of Luxi Chemical Industry, "the amount of direct property loss exceeds 20 million yuan (including), more than 10 people were killed or more than 20 people were seriously injured. The negative impact on the company's regular reports or the company's image" is a major defect in the internal control of non-financial reports.

Therefore, Tiantou International believes in the report that there are major defects in the internal controls related to production safety in Luxi Chemical Industry.

Earlier, on the evening of April 21, Luxi Chemical announced that on April 19, 2024, the people's Government of Shandong Province issued a reply to the "investigation report on the Major explosion and Fire accident of Liaocheng Luxi hydrogen peroxide New material Technology Co., Ltd." (Lu Zhengzi (2024) No. 52).

The document shows that the "May 1" major explosion fire accident of Sinochem Group Liaocheng Luxi hydrogen peroxide New material Technology Co., Ltd. (that is, hydrogen peroxide Company) was due to unclear identification of the safety risk of high concentration hydrogen peroxide, poor control, and illegal operation. a major production safety accident caused by the gathering of on-site personnel.

It is worth noting that as a wholly-owned subsidiary of Luxi Chemical Co., Ltd., the performance and capital operation of Luxi Chemical Industry in 2023 were also affected after a major accident occurred in hydrogen peroxide Company.

On the evening of April 29th, Luxi Chemical released its 2023 financial results, showing that the company achieved operating income of 25.358 billion yuan last year, down 16.47% from the same period last year, while the corresponding homed net profit was 819 million yuan, down 74.05% from the same period last year.

Luxi Chemical also mentioned various difficulties in its financial report in 2023: the global economic recovery was slow, the domestic economic recovery was under great pressure, the chemical market remained depressed, and the company had safety accidents in the first half of the year.

In addition to having an impact on last year's performance, the explosion also affected Luxi Chemical's plan to absorb and merge Luxi Group, the controlling shareholder, in order to achieve an overall listing.

On April 17, 2023, the CSRC issued a relevant reply approving the application for registration of Luxi Chemical to absorb and merge Luxi Group with 501 million new shares, which is valid for 12 months from the date of issuance.

On April 17 this year, Luxi Chemical announced that after receiving the registration document from the CSRC, the company actively promoted the absorption and merger of Luxi Group in accordance with the relevant requirements of the document and the authorization of the shareholders' meeting of the company. however, due to the impact of the accident of the company's subsidiary on May 1, 2023, the company failed to complete the share issue within 12 months from the date of approval issued by the CSRC. The approval will expire automatically when it expires.

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