1. Penalty for Disclosure Violations Baiyin Nonferrous Group Co., Ltd. (Baiyin Nonferrous) announced on the evening of October 24 that the company and relevant executives received the "Administrative Penalty Decision" issued by the Gansu Securities Regulatory Bureau. The failure to disclose overdue wealth management products worth RMB 3 billion has resulted in a heavy penalty of RMB 8.8 million.
The company’s alleged violations primarily concern inadequate disclosure of wealth management products. From August 2017 to March 2018, Baiyin Nonferrous purchased wealth management products totaling RMB 3 billion.
These products failed to be recovered on schedule in 2019, with principal and related returns only reclaimed in December 2024. While the company disclosed the opening and closing balances of the RMB 3 billion products under "other current assets" in its annual reports from 2019 to 2024, it omitted critical details about the overdue status, constituting a material omission in disclosure.
2. Investor Compensation Eligibility Following the formal penalty, the eligibility criteria for compensation claims have been updated. Investors who purchased shares between April 30, 2020, and September 10, 2025 (inclusive) and suffered losses by selling or holding the shares after September 11, 2025, may participate in the claim.
As a major nonferrous metals enterprise with deep industry roots and an emerging global presence, Baiyin Nonferrous now faces multiple challenges, including regulatory penalties, operational losses, and internal governance issues.
In an increasingly stringent regulatory environment, publicly listed companies must strengthen internal controls and ensure transparent, accurate disclosures to sustain long-term growth.
According to Liu Peng, a lawyer at Shanghai Huzi Law Firm, the Securities Law and related judicial interpretations stipulate that listed companies must bear civil liability for investor losses caused by misrepresentation. Affected investors are advised to verify their eligibility for compensation.
(Note: This article is contributed by Liu Peng, a securities litigation lawyer with 19 years of experience, specializing in investor rights protection. Since 2006, Liu has successfully represented small and medium investors in over 300 cases involving listed companies, achieving a 99.2% success rate.)
Comments