Hengyang Petrochemical Logistics Faces OFAC Sanctions: Trading Suspended Amid Major Uncertainty

Key Points for Investors

• Hengyang Petrochemical Logistics Limited, along with its Executive Director/CEO Mr. Gu Wenlong and major Chinese subsidiary Jiangyin Foreversun Chemical Logistics Co., Ltd., has been added to the U.S. Treasury’s Office of Foreign Assets Control (OFAC) Specially Designated Nationals List (SDN List).
• The company’s shares are suspended from trading on the Singapore Exchange with immediate effect.
• This action follows a trading halt that started on 13 October 2025.
• The Board is actively assessing the financial, operational, and regulatory impact of these U.S. sanctions.
• Further legal and professional advice is being sought, with possible avenues for removal from the SDN List under consideration.
• Shareholders and stakeholders are advised to await further announcements for material developments.

In-Depth Details Investors Need to Know

On 10 October 2025, Hengyang Petrochemical Logistics Limited (the “Company”) was officially notified that it, its Executive Director and CEO Mr. Gu Wenlong, and its indirect subsidiary Jiangyin Foreversun Chemical Logistics Co., Ltd. (of which it owns a 41.64% equity stake) have all been designated on the OFAC SDN List. This action was publicized in official U.S. government releases, and is directly tied to alleged trading in Iranian petroleum and petrochemicals.

The immediate consequence of this designation is the suspension of the company’s shares on the Singapore Exchange. The Board moved swiftly to halt trading, in line with Singapore Exchange (SGX) guidelines, to protect investors and ensure orderly market conditions during this period of heightened uncertainty.

What Does This Mean for Shareholders?

• Sanctions Impact: Being listed on the SDN List means the company, its CEO, and its major Chinese subsidiary are subject to severe U.S. restrictions. All U.S. persons and entities are generally prohibited from dealing with SDN-listed entities, and any assets under U.S. jurisdiction may be blocked. This could have a profound effect on the Group’s ability to conduct international business, access financial systems, and maintain relationships with global partners.
• Financial and Operational Risks: The company is currently unable to quantify the full financial and operational impact. However, such designations typically result in banking restrictions, disrupted supply chains, and potential loss of business partners or customers, especially those with U.S. connections or compliance requirements.
• Reputational Damage: The inclusion of both the company and its CEO on the SDN List could significantly impact the group’s reputation and its ability to secure contracts, credit, or investment going forward.
• Uncertainty and Volatility: Until further announcements are made, investors should be aware that the company’s outlook is highly uncertain. The Board itself acknowledges the need for further time to fully assess the ramifications and obtain legal counsel.

Next Steps and Ongoing Assessment

The Board has committed to keeping shareholders updated as soon as material developments arise. They have also stated that they will be seeking legal and professional advice to evaluate the validity of the OFAC designations and to explore possible actions for removal from the SDN List.

The company’s sponsor, Xandar Capital Pte Ltd, has reviewed the announcement, but the Singapore Exchange has not examined or approved the content.

Conclusion: High Uncertainty and Material Price Sensitivity

The inclusion of Hengyang Petrochemical Logistics Limited and its CEO on the OFAC SDN List, along with the immediate trading suspension, constitutes a highly material and price-sensitive event. Investors should closely monitor future disclosures as the situation evolves, given the potentially severe implications for the company’s operations, financial health, and valuation.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult their own professional advisers and conduct their own due diligence before making investment decisions. The situation described is fluid and subject to significant change.

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