Risen Energy cited for disclosure failures, governance issues

Risen Energy Co., Ltd. and key executives, Lin Haifeng (chairman) and Xue Shanxing (board secretary), have received an administrative regulatory measure decision letter from the Ningbo regulatory bureau of the China Securities Regulatory Commission. The decision outlines two primary violations: untimely disclosure of significant event progress and inadequate implementation of its insider information registration and management system.

The first violation stems from Risen Energy's failure to update the market on the progress of a significant receivable. In a June 8, 2022, announcement, the company disclosed a planned transfer of 100% equity in Ningxia Xuneng New Energy Technology Co., Ltd., with a projected repayment of CNY 18,484.75 by August 31, 2022. Ningxia Xuneng did not fully repay the amount, with an outstanding balance of CNY 10,565.86 as of the end of 2024, a development Risen Energy failed to disclose.

Additionally, Risen Energy did not adequately register insiders for major events like performance forecasts. As a result, Risen Energy has been ordered to rectify these issues, while Lin Haifeng and Xue Shanxing will undergo regulatory talks and have their actions recorded in the securities and futures market integrity database.