Keda Clean Energy faces scrutiny, begins rectification over compliance breaches

Keda Clean Energy Co., Ltd. announced it has received an administrative regulatory measure decision letter from the China Securities Regulatory Commission's Guangdong Regulatory Bureau. The decision, issued on October 31, 2025, highlights issues including off-book fund transactions, improper income and expense accounting, and irregular compensation for directors, supervisors, and senior management. The company confirmed it is actively addressing these issues and has completed preliminary rectifications.

Specifically, the company engaged in off-book transactions and accounting, impacting profit in 2022, 2023, 2024, and the first half of 2025 by 0.12%, 0.81%, 1.09%, and 0.29% of disclosed net profit, respectively. By September 2025, off-book personal accounts had been closed and funds returned to the company's bank accounts. Unauthorized compensation for directors, supervisors, and senior management, along with accrued interest, has been fully reimbursed to the company.

The regulatory findings also identified instances of related parties temporarily occupying company funds via suppliers between September 2017 and September 2018, amounting to 0.71% and 1.20% of the year-end net assets, which have since been returned with interest. Furthermore, the company provided unauthorized financial assistance to related parties, including its chairman and former directors, totaling 8.355 million yuan and 7.2 million yuan, which has also been repaid.