Controversies

Shagang Group, controlling shareholder of Shagang Co., fined RMB 2.5 million by CSRC for concealing concerted-action relationship

The CSRC opened an investigation in November 2021 and found that Jiangsu Shagang Group Co., Ltd., the controlling shareholder of Shagang Co., had a concerted-action relationship with Jinlin Fengtai but failed to disclose it, causing false records in Shagang Co.'s 2019 and 2020 annual reports; the combined shareholding change reached 1% without disclosure as required by law, and during the period shares numbering in the tens of millions were bought and sold through Jinlin Fengtai to "hide" the holdings. In July 2022 the CSRC imposed penalties: Shagang Group was ordered to correct, warned and fined RMB 2.5 million, while Jinlin Fengtai and responsible persons Shen Bin, Wei Guo and Sun Lianjie were also penalized accordingly. Impact and handling: Shagang Co. issued an announcement disclosing that its controlling shareholder had received the penalty decision. Progress: administrative penalty. Entities involved: Jiangsu Shagang Group Co., Ltd. and Jinlin Fengtai (relevant concerted actor). Scope: controlling shareholder and concerted actors of Shagang Co.; annual report information disclosure by the listed company.