China Tianrui delays FY2025 results; probes RMB 8.26 billion coal-prepayment flows, trading remains suspended

China Tianrui Group Cement Company Limited announced a further delay in publishing its financial results for the year ended 31 December 2025. Trading in the company’s shares, suspended since 23 March 2026, will remain on hold until completion of an independent investigation and the release of audited figures.

The postponement stems from additional audit requirements. The external auditor has asked for comprehensive operating records—purchase orders, supplier contracts and other documents—covering more than 1,600 transactions across about 20 subsidiaries. These materials are stored in multiple departments, and management expects substantial time will be needed to retrieve, verify and correlate them with accounting data.

Two key issues underpin the audit scrutiny: 1. Fund flows involving a coal supplier that carried an unaudited balance of roughly RMB 8.26 billion as at 31 December 2025, down from RMB 8.81 billion a year earlier. 2. Assessing the recoverability of significant outstanding pre-payments to coal suppliers, where limited utilisation was recorded during 2025.

To address these matters, China Tianrui has engaged Zhongxinghua (Hong Kong) Advisory Limited (ZXH Hong Kong) to perform an eight-to-ten-week independent investigation under Hong Kong Standard on Related Services 4400 (Revised). ZXH Hong Kong will deploy a team of four to five forensic professionals to scrutinise operational and accounting records, conduct on-site supplier interviews, and verify settlement data. Findings will be reported to the Board’s Audit Committee, which has been given full authority to oversee the process.

The company also plans to appoint an internal-control consultant to review procedures surrounding prepayments and financial reporting, and to arrange additional training for directors and senior management. The auditor has indicated satisfaction with the proposed remedial plan, but the Board will set a publication date for the FY2025 results only after the investigation concludes and any outstanding audit issues are resolved.

China Tianrui will issue further announcements on the investigation outcome and the timetable for releasing its FY2025 results. Investors are urged to exercise caution when dealing in the company’s securities while the suspension remains in force.