YANCHANG PETRO (00346.HK): Subsidiary sales personnel suspected of colluding to misappropriate approximately RMB 19.24 million of inventories, suspects criminally detained
NewTimeSpace News: On 25 August 2026, Yanchang Petroleum International Limited (stock code: 00346) announced that the board recently received a management report dated 21 August 2026 from a subsidiary, stating that a salesperson of the subsidiary and an independent third party are suspected of conspiring to defraud and misappropriate inventories estimated at approximately RMB 19.24 million (approximately HKD 22.32 million). Following the discovery of the suspected misappropriation and preliminary internal investigations, the subsidiary's management has reported the matter to the Public Security Bureau of China, and the Company was informed that the suspected persons have been criminally detained; the suspected persons are alleged to have forged documents to illegally obtain the inventories, and the Group is cooperating with the Public Security Bureau to recover the inventories or proceeds of crime.
The announcement stated that, as the suspected misappropriation is still under criminal investigation, and due to PRC legal provisions such as the non-disclosure of information in criminal cases, the Company is currently unable to grasp the details of the case progress, and the amount of inventories or proceeds ultimately recoverable remains undetermined, with the actual financial impact on the Group's financial performance and position to be confirmed. In addition, as the board only became aware of the suspected misappropriation after the profit warning announcement dated 4 August 2026, the financial impact of the incident was not included in that announcement; the Group's formal interim results will be published around 27 August 2026, and the board will update shareholders, if any, on the financial impact of the incident on the interim results.
The Company plans to engage appropriate third-party professional advisers to conduct an independent investigation into the suspected misappropriation, review the Group's risk management and internal control systems, and propose remedial and rectification recommendations to the board. To the best knowledge of the directors, the suspected misappropriation will not affect the Group's day-to-day business operations, and the Company will publish further announcements on the progress of the incident in due course.
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