Firm admits rules violation
1 September 2002
Sinopec Yizheng Chemical Fibre admitted that it had violated listing rules by not disclosing that it had paid parent China Petrochemical Group Yn199m to help it build a chemical plant, Bloomberg reported. The company apologised to its shareholders, saying that the breach was due to an administrative oversight.
Yizheng awarded China Petrochemical several contracts last year to help build a chemical plant with the capacity to produce 450,000 tonnes a year of purified terephthalic acid, used in making cloth and plastic bottles. Yizheng said that the contracts had been awarded through an open bidding process.