Controversies

Dashang Group accused of suspending supplier settlements, raising deductions; Shenyang industry and commerce bureau orders correction

In early 2015, several brand suppliers reported that malls under Dashang Group unilaterally suspended payment settlement, raised deduction rates, and imposed promotion fees, which media described as suppliers being 'variously ravaged.' After the Shenyang Administration for Industry and Commerce intervened, it found the practices violated the Measures for Fair Transactions between Retailers and Suppliers and ordered Dashang Group to correct them. Impact and handling: because the maximum fine under the regulations at the time was only 30,000 yuan, reports questioned whether the penalty was sufficient; suppliers could separately assert breach-of-contract liability. In addition, Dashang Co., Ltd. was involved in litigation over the Jinboda City project involving about 924 million yuan, lost at first instance, and appealed; its 2024 annual report disclosed that a Fushun subsidiary had deposits frozen due to 26 million yuan in rent arrears. Progress: regulatory measures. Entities involved: Dashang Group Co., Ltd. and Dashang Co., Ltd. Scope: settlement between Dashang Group malls in Shenyang and other places and suppliers.