Henan Shenhuo faces CSRC action over disclosure, governance issues

Henan Shenhuo Coal & Power Company Limited announced on September 5, 2025, that it received an administrative decision from the China Securities Regulatory Commission (CSRC) Henan Bureau, citing several violations. The company was found to have failed in disclosing non-operating related party transactions, not timely disclosing conflicts of interest with its controlling shareholder, and not following proper procedures for using raised funds to replace self-funded capital. Additionally, the company's "three meetings" operations were deemed non-standard.

The CSRC Henan Bureau has ordered the company to rectify these issues. Concurrently, several key personnel, including chairman Li Hongwei, general manager Zhang Wenzhang, former financial director Liu Dexue, financial director Chen Guang, board secretary Li Yuanxun, former general manager Li Zhongyuan, and former board secretary Wu Changwei, received warning letters for failing to fulfill their duties diligently. These measures will be recorded in their securities and futures market integrity files.

Henan Shenhuo and the implicated individuals have committed to thoroughly reflecting on the issues, strictly rectifying the identified problems, and submitting a written rectification report within 30 days. The company aims to enhance its corporate governance, improve information disclosure quality, and prevent similar issues from recurring, ensuring compliance and protecting shareholder interests.