Fujian Yongan Forestry shareholder sanctioned for breaking voting rights pledge

Fujian Yongan Forestry Group Joint-Stock Company announced that its shareholder, Yongan City Yuanxing Caoyuan Town Construction Company, received an administrative regulatory measure decision from the Fujian Securities Regulatory Bureau. This decision mandates corrective action and has been recorded in the securities and futures market's integrity file.

The regulatory action stems from an agreement on March 26, 2024, where Yuanxing Construction Company signed a "Voting Rights Entrustment Agreement" with the Yongan City Bureau of Finance. This agreement irrevocably entrusted all voting rights of its shares in Fujian Yongan Forestry Group, excluding property rights, to the Yongan City Bureau of Finance, for a period spanning from March 26, 2024, to March 25, 2027. However, on November 21, 2025, Yuanxing Construction Company and the Yongan City Bureau of Finance signed a "Termination Agreement" to dissolve the entrustment, which the Fujian Securities Regulatory Bureau deemed a breach of Yuanxing Construction Company's prior commitment.

Yuanxing Construction Company is now required to continue fulfilling the original voting rights entrustment, take measures to eliminate the negative impact of the violation, and submit a written rectification report to the Fujian Securities Regulatory Bureau within 30 days of receiving the decision letter. The company stated that this measure will not change its controlling shareholder or actual controller, nor will it impact the company's governance or daily operations.