Controversies

Accounting errors inflated profit and related-party disclosures were inaccurate; warnings and four straight years of regulatory letters

In May 2021, the Shenzhen regulatory bureau of the CSRC found that Chengxin Lithium's disclosure of related-party transaction fund flows was inaccurate and some transactions had not gone through decision-making procedures; multiple annual reports contained accounting errors that inflated net profit, and it issued warning letters to the company and executives including Wang Tianguang. In September of the same year, the Shenzhen Stock Exchange issued a circulated criticism over major accounting errors and irregular guarantees, and the company continued to receive regulatory letters for untimely related-party transaction disclosures. Warning letters; circulated criticism.