Henan Shenhuo details plan to correct regulatory violations

Henan Shenhuo Coal & Power Company Limited received a decision letter from the Henan regulatory bureau of the China Securities Regulatory Commission on September 5, 2025, detailing requirements for rectification and warning letters for several individuals. The company has since initiated a comprehensive plan to address identified issues, including undisclosed related-party transactions, unannounced competition from its controlling shareholder, and unapproved changes to the use of raised capital.

The rectification efforts involve enhancing compliance awareness through legal and regulatory training for directors, supervisors, and senior management. Specific measures include real-time monitoring of related-party transactions, ensuring timely disclosure of information, and adherence to approved procedures for capital utilization. The company also commits to improving corporate governance and internal controls to prevent future occurrences.

Henan Shenhuo plans to rigorously enforce compliance with regulatory requirements and its articles of association, ensuring full disclosure and proper approval for all relevant transactions. These steps are aimed at enhancing operational transparency, financial integrity, and investor confidence for long-term sustainable development.