Xuetian Salt Industry issued a correction announcement on the evening of September 13, amending the commitments of the counterparties and the target company in the restructuring plan involving share issuance and cash payment for asset purchase with supporting funds and related-party transactions disclosed on the evening of September 11, and adding risk warnings. The announcement shows that counterparty Liu Gejun was placed under investigation by the China Securities Regulatory Commission on March 20, 2026, for suspected personal insider trading. The investigation targets his personal trading in shares of other companies, does not involve trading in Xuetian Salt Industry shares, and is unrelated to this transaction. As of the date the commitment letter was issued, the investigation is still ongoing and no clear conclusion has been reached. Liu Gejun is the second-largest natural person shareholder of Hebei Kuntian, the target of this restructuring, holding 35.1858 million shares, or 9.7738 percent. He is also one of the 54 counterparties in this transaction and bears the obligation to make up losses during the transition period. The company added a risk warning stating that if the investigation ultimately results in an administrative penalty, criminal liability, or is determined to have a material adverse impact on this transaction or constitute a legal obstacle, the transaction plan may be subject to subsequent adjustments. Notably, the investigation occurred on March 20, 2026, nearly six months ago, yet was not disclosed in the restructuring plan first released on the evening of September 11. Instead, an urgent correction announcement was issued two days later to supplement the disclosure. Hebei Kuntian was established in May 2018, mainly engaged in lithium-ion battery anode materials, and was selected for the 2026 Hurun Global Unicorn List. In the UP2026 China Energy Unicorn Enterprises list, it ranked tied for 19th with a valuation of 12.922 billion yuan, exceeding Xuetian Salt Industry's own market value. In the first half of 2026, Xuetian Salt Industry achieved operating revenue of 2.658 billion yuan, down 2.89 percent year-on-year; net profit attributable to shareholders of the listed company was 79.18 million yuan, down 9.23 percent year-on-year after retrospective adjustment; and net profit excluding non-recurring items was 69.04 million yuan, up 68.34 percent year-on-year.
Snowsky Salt Industry Group Co LtdXuetian Salt Industry had to issue an urgent correction adding that counterparty Liu Gejun is under CSRC investigation for insider trading, creating risk that the restructuring plan may be adjusted or blocked.
Hebei Kuntian is the restructuring target, and its second-largest natural person shareholder Liu Gejun is under CSRC investigation for suspected insider trading, threatening the transaction.
