Zhejiang Wanma faces regulatory scrutiny over disclosure violations

Zhejiang Wanma and chairman Li Gang received warning and regulatory letters from the Shenzhen Stock Exchange and Zhejiang Securities Regulatory Bureau for disclosure violations.

The company delayed disclosing a 1 billion yuan joint venture for an environmental cable material project by two months, only submitting it to the board in May 2022 despite signing the agreement in March.

A 510 million yuan related-party transaction to establish an industrial fund was signed in October 2022 but not approved by the board until November. Another 500 million yuan investment saw Zhejiang Wanma's ownership increase to 70% in August 2022, but this wasn't disclosed until October.