On the evening of October 16, *ST Power (Xin Dongli) announced that the company had received an Administrative Penalty Decision issued by the Hebei Securities Regulatory Bureau. Due to false records in interim reports and major omissions in periodic reports, *ST Power was fined 5 million yuan, and the responsible personnel were also penalized. During the same period, the Shenzhen Stock Exchange also imposed public censure and other disciplinary actions on *ST Power and the relevant parties, and recorded them in the integrity file database of the securities and futures market.
Information disclosure contained false records and major omissions. Looking back, as early as September 2025, the China Securities Regulatory Commission opened an investigation into Xin Dongli on suspicion of violations of information disclosure laws and regulations. By the time this administrative penalty was finally implemented, more than a year had passed. After investigation, it was found that from June 2016 to October 2024, Mao Fengli was the actual controller of Xin Dongli. Mao Fengli actually controlled Hebei Nuoan Equity Investment Fund Management Co., Ltd. (hereinafter referred to as Nuoan Fund) no later than September 28, 2020. Because Xin Dongli and Nuoan Fund were both controlled by Mao Fengli, Nuoan Fund was a related party of Xin Dongli. On September 30, 2020, Xin Dongli disclosed an announcement about external investment to establish an environmental protection industry investment fund, stating that it planned to use 150 million yuan of its own funds to jointly invest with Nuoan Fund to establish an environmental protection industry investment fund, that Nuoan Fund had no related-party relationship with the company, and that this investment did not constitute a related-party transaction. Thereafter, Xin Dongli and Nuoan Fund signed the Partnership Agreement of Puyi Shijiazhuang Equity Investment Fund Management Center (Limited Partnership), and Xin Dongli transferred 140 million yuan of investment funds to the Puyi Fund. The Hebei Securities Regulatory Bureau pointed out that the joint investment by Xin Dongli and Nuoan Fund to establish the Puyi Fund constituted a related-party transaction, and the interim announcement disclosed by Xin Dongli on September 30, 2020 contained false records. Xin Dongli did not disclose its related-party relationship with Nuoan Fund in its 2020 annual report, 2021 semi-annual report, or 2021 annual report, nor did it disclose that this transaction was a related-party transaction. The above periodic reports contained major omissions. The Hebei Securities Regulatory Bureau decided to order Xin Dongli to make corrections, issue a warning, and impose a fine of 5 million yuan; to issue warnings to Mao Fengli, Mao Junliang (then chairman), Cheng Fangfang (then general manager and board secretary), Zhang Meng (then chief financial officer), and Zong Ran (then board secretary), and impose fines of 8 million yuan, 4 million yuan, 3.6 million yuan, 3.2 million yuan, and 2 million yuan respectively. In addition, given the serious circumstances of the violations by Mao Junliang and Cheng Fangfang, the Hebei Securities Regulatory Bureau decided to impose a four-year securities market ban on both individuals.
The Shenzhen Stock Exchange imposed a public censure. Regarding the implementation of this administrative penalty, *ST Power stated that, based on the circumstances determined in the Administrative Penalty Decision, the company does not trigger the circumstance of mandatory delisting for major violations and there is no risk of mandatory delisting for major violations. At present, the company's production and operations are normal. *ST Power also stated that the company will strictly comply with the provisions and requirements of relevant laws and regulations and promptly fulfill its information disclosure obligations. With respect to the matters involved in this penalty decision, the company will exercise its remedial rights in accordance with the law to protect its own interests and those of all shareholders; the company will promptly fulfill its information disclosure obligations regarding subsequent developments of such matters. On October 16, the Shenzhen Stock Exchange imposed disciplinary actions on *ST Power and the relevant parties. The Shenzhen Stock Exchange imposed a public censure on the company, imposed a public determination that Mao Junliang and Cheng Fangfang are unsuitable to serve as directors and senior management personnel of listed companies for three years, and imposed public censure on Mao Fengli, Mao Junliang, Cheng Fangfang, Zhang Meng, and Zong Ran. Regarding the violations and disciplinary actions involving *ST Power and the relevant parties, the Shenzhen Stock Exchange will record them in the integrity file database of the securities and futures market. Public information shows that Xiong'an Xin Dongli Technology Co., Ltd. was listed on the ChiNext Board of the Shenzhen Stock Exchange in 2010 and is an environmental protection and new energy listed company registered in Xiong'an New Area. In recent years, the company's performance has suffered losses for consecutive years, and its stock has also been subject to risk warnings. After the market closed on October 13, *ST Power issued a risk warning announcement that the company's stock may be delisted. It noted that the company's net profit, whichever is lower before or after deducting non-recurring gains and losses, has been negative for the most recent three fiscal years, and the 2025 audit report contains a statement that there is significant uncertainty about the company's ability to continue as a going concern. As of the close on October 16, *ST Power traded at 1.45 yuan per share, with a total market value of only 1.034 billion yuan.
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