Sinocera hit with regulatory warnings for governance failures

Shandong Sinocera Functional Material Co., Ltd. and its vice general manager and board secretary, Xu Shaomei, have received a "Decision Letter" from the Shandong Regulatory Bureau of the China Securities Regulatory Commission and a "Regulatory Letter" from the Shenzhen Stock Exchange. The company was found to have permitted related-party shareholders to vote on connected transactions without recusal and lacked proper oversight by legal and shareholder representatives during some general meetings.

These actions violated rules for general meetings of listed companies and Shenzhen Stock Exchange ChiNext stock listing rules. Xu Shaomei was identified as primarily responsible for these failures.

The company and Xu Shaomei have been ordered to rectify these issues within 30 days and submit a written rectification report to the Shandong Regulatory Bureau. The violations will also be recorded in the securities and futures market integrity archives. Sinocera states these measures will not impact normal operations and reiterates its commitment to fulfilling information disclosure obligations.