On November 28, 2019, Jiangsu Yuanzheng Chemical Co., Ltd., a wholly-owned subsidiary of Zhejiang Runtu Co., Ltd., recently received the “Administrative Penalty Decision” on production safety issued by the Guanyun County Emergency Management Bureau.
The Second Working Group of the Jiangsu Special Rectification and Supervision of Work Safety under the State Council inspected Jiangsu Yuanzheng Chemical Co., Ltd. During the inspection, the company had ceased production and the following illegal acts were found: (1) Failure to effectively implement the hazardous operation management system; (2) Failure to install ventilation facilities in the sulfur dioxide warehouse; (3) Failure to conduct regular inspections of safety facilities and equipment in accordance with national standards maintenance. It was decided to impose an administrative penalty of RMB 175,000 on Jiangsu Yuanzheng Chemical Co., Ltd.
Original text of the announcement
Announcement on the Subsidiary’s Receipt of Administrative Penalty Decision
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete, and there are no false records , misleading statements or material omissions.
Jiangsu Yuanzheng Chemical Co., Ltd. (hereinafter referred to as “Jiangsu Yuanzheng”), a wholly-owned subsidiary of Zhejiang Runtu Co., Ltd. (hereinafter referred to as the “Company”), recently received a safety certificate issued by the Guanyun County Emergency Management Bureau. The “Administrative Penalty Decision” was produced (Qianfeng Penalty [2019] No. 220), and the relevant information is now announced as follows:
1. The main contents of the “Administrative Penalty Decision”
On November 28, 2019, the Second Working Group of the State Council’s Special Rectification and Supervision of Production Safety in Jiangsu inspected Jiangsu
Yuanzheng Chemical Co., Ltd. During the inspection, the company had stopped production and found the following Illegal behaviors: (1) Failure to effectively implement the hazardous operation management system; (2) Failure to install ventilation facilities in the sulfur dioxide warehouse; (3) Failure to perform regular maintenance and upkeep of safety facilities and equipment in accordance with national standards.
The above facts (1) violate items 2 and 5 of Article 24, Paragraph 1, of the “Jiangsu Provincial Production Safety Regulations”: “Production and business units conduct blasting, hoisting, hot work in dangerous places, For dangerous operations such as operations at high altitudes, operations in limited spaces, operations near high-voltage transmission lines, demolition of buildings and structures, and large-scale maintenance, the relevant hazardous operation management systems must be implemented and the following responsibilities must be performed: (2) Confirm that on-site operating conditions are safe. Operation requirements; (5) Explain the hazard factors, operation safety requirements and emergency measures to the workers before dangerous operations, and confirm them with signatures from both parties.” According to the provisions of Article 51 of the “Jiangsu Province Safety Production Regulations”, it was decided to give Jiangsu Yuanzheng Chemical Co., Ltd. was imposed an administrative penalty of RMB 76,000.
The above facts (2) and (3) violate the first paragraph of Article 20 of the “Regulations on the Safety Management of Hazardous Chemicals”: “Units that produce and store hazardous chemicals shall comply with the regulations for their production and storage. The types and hazard characteristics of hazardous chemicals, and corresponding monitoring, monitoring, ventilation, sun protection, temperature regulation, fire prevention, fire extinguishing, explosion protection, pressure relief, poison prevention, neutralization, moisture protection, lightning protection, anti-static, anti-corrosion, Safety facilities and equipment such as leakage prevention, protective dikes or isolation operations, and regular maintenance and upkeep of safety facilities and equipment in accordance with national standards, industry standards or relevant national regulations to ensure the normal use of safety facilities and equipment.”, according to In accordance with Article 80 of the “Regulations on the Safety Management of Hazardous Chemicals”, it was decided to impose an administrative penalty of RMB 99,000 on Jiangsu Yuanzheng Chemical Co., Ltd.
In summary, according to Article 53 of the “Measures for Administrative Punishments for Violations of Production Safety”: “Production and business units and their relevant personnel have violated different legal provisions, and there are two or more safety violations that should be subject to administrative penalties.” For production violations, the safety supervision and supervision departments shall apply different legal provisions, make separate decisions and combine penalties.” According to the regulations, it was decided to impose an administrative penalty of RMB 175,000 on Jiangsu Yuanzheng Chemical Co., Ltd.
II. Impact on the company and corrective measures
1. According to the “Shenzhen Stock Exchange Stock Listing Rules”, “Shenzhen Stock Exchange Listed Companies” According to the provisions of the “Implementation Measures for Delisting for Major Illegal Violations”, the administrative penalties imposed on the subsidiary Jiangsu Yuanzheng do not touch items (7) to (9) of Article 13.2.1 of the “Shenzhen Stock Exchange Stock Listing Rules” and “Listed Companies” Situations stipulated in Articles 2, 4 and 5 of the Implementation Measures for Forced Delisting for Major Violations.
2. At present, Jiangsu Yuanzheng has actively taken effective measures to rectify existing problems one by one in accordance with laws, regulations, standards and requirements related to production safety, and in conjunction with the rectification opinions of relevant government departments.
3. This administrative penalty will have a certain impact on Jiangsu Yuanzheng’s current performance and will not have a significant impact on the company’s overall operating performance. The company will strictly require its subsidiaries to further enhance their awareness of production safety and do a good job in safety production management in strict accordance with relevant national laws and regulations.
3. Documents available for reference
1. Guanyun County Emergency Management Bureau’s “Administrative Punishment Decision” on Production Safety (Guanyun Emergency Punishment [2019] No. 220)
This is hereby announced.
Board of Directors of Zhejiang Runtu Co., Ltd.
December 19, 2019</p
