Xianhe Shares’ actual controller has been filed for investigation; the company is also planning a private placement for listing, with a fund-raising amount of 41.4 billion yuan in total over 8 years.

China Economic Net Beijing, April 7 — Xianhe Co., Ltd. (603733.SH) recently disclosed an announcement stating that one of the company’s actual controllers, Wang Minglong, has received a notice of case filing from the China Securities Regulatory Commission (hereinafter referred to as “CSRC”).

The company received a notification from one of its actual controllers, Wang Minglong, that on April 3, 2026, he received a “Notice of Case Filing” issued by the CSRC (No.: Zhengjian Filing Zi 01120260010). Due to suspected short-term trading, the CSRC decided to file a case against Wang Minglong in accordance with the Securities Law of the People’s Republic of China, the Administrative Penalty Law of the People’s Republic of China, and other laws and regulations.

The announcement states that this case filing is related to Wang Minglong personally and has nothing to do with the company’s daily operations and business activities, and will not affect the company’s production and operation activities.

On the same day, Xianhe Co., Ltd. also disclosed an announcement that the company received a notice from one of its actual controllers, Wang Minglong, informing him that he received a decision from the Zhejiang Regulatory Bureau of the CSRC titled “Decision on Imposing Corrective Measures on Wang Minglong” [2026]77 (hereinafter referred to as “the ‘Decision’”).

According to the “Decision,” after investigation, Wang Minglong, as one of the actual controllers of Xianhe Co., Ltd., failed to promptly inform the company about using others’ securities accounts to hold Xianhe shares, resulting in the company’s controlling shareholder and persons acting in concert holding a total of 80% of the company’s shares without timely disclosure. The above behavior violated Article 13, Paragraph 2 of the “Administrative Measures for the Acquisition of Listed Companies” (CSRC Order No. 227). According to Article 75 of the same measures, the Zhejiang Regulatory Bureau decided to impose corrective supervision measures on Wang Minglong and record this in the securities and futures market integrity archive.

Previously, Xianhe Co., Ltd. also disclosed a decision issued by the Shanghai Stock Exchange titled “Regulatory Warning for Wang Minglong, the Actual Controller of Xianhe Co., Ltd.”

Shang Zheng Gong Jian Han [2026] No. 0045 shows that, based on the facts investigated in the “Decision on Imposing Corrective Measures on Wang Minglong” (No. 77, 2026) issued by the Zhejiang Regulatory Bureau of the CSRC (hereinafter referred to as “the ‘Corrective Measures’”), Wang Minglong, as one of the actual controllers of Xianhe Co., Ltd., failed to promptly inform the company about using others’ securities accounts to hold Xianhe shares, leading to the company’s controlling shareholder and persons acting in concert holding 80% of the shares without timely disclosure. The above conduct of the company’s actual controller violated the Securities Law of the People’s Republic of China Article 63, the “Administrative Measures for the Acquisition of Listed Companies” Article 13, and relevant provisions of the Shanghai Stock Exchange Stock Listing Rules (hereinafter “Stock Listing Rules”) Articles 1.4, 2.1.1, 3.4.1, 3.4.2, etc. In view of the above violations and circumstances, according to Articles 13.2.1 and 13.2.2 of the Stock Listing Rules and the Measures for the Implementation of Disciplinary Actions and Regulatory Measures of the Shanghai Stock Exchange, the first department of the Shanghai Stock Exchange’s listed company management has made the following regulatory decision: to issue a regulatory warning to Wang Minglong, the actual controller of Xianhe Co., Ltd.

Data shows that on the evening of September 26, 2025, Xianhe Co., Ltd. issued a “Pre-Plan for the Private Placement of A-shares to Specific Targets,” with the total amount of funds raised not exceeding 3 billion yuan (including this amount). After deducting issuance expenses, the net funds will be used for the following purposes: Phase II of the high-performance paper-based new material project in Sanjiangkou New Area, Guangxi, and replenishing working capital.

On April 20, 2018, Xianhe Co., Ltd. was listed on the main board of the Shanghai Stock Exchange, issuing 62 million shares at a price of 13.59 yuan per share. The sponsor (lead underwriter) was Orient Securities Co., Ltd., with Chen Rui and Zhang Huiqin as sponsoring representatives. The total amount of funds raised was 842.58 million yuan, with a net amount of 780.70 million yuan after deducting issuance costs. The total issuance expenses were 61.87 million yuan (excluding VAT), including underwriter sponsorship fees of 47.55 million yuan.

On April 4, 2018, Xianhe Co., Ltd. issued its initial public offering prospectus, stating that the company planned to raise 780.70 million yuan for projects including the “Annual Production of 108k Tons of Special Paper,” “Annual Production of 50k Tons of Digital Printing Heat Transfer Paper, Food Packaging Base Paper, and Electrolytic Capacitor Paper Technical Renovation,” and “Changshan County Huibu New District Coal-Fired Combined Heat and Power Project.”

On January 8, 2020, Xianhe Co., Ltd. issued a listing announcement for convertible corporate bonds. The total amount of funds raised from this issuance was 1.25 billion yuan (including issuance costs), with a net of 1.23583 billion yuan after deducting issuance expenses. The funds will be used for projects including the “Annual Production of 220k Tons of High-End Paper-Based New Materials” and replenishing working capital. The remaining balance of 1.23781 billion yuan, after deducting underwriting and sponsorship fees, was transferred by the lead underwriter to the company’s special deposit account for raised funds at the Quzhou Qujiang Branch of Industrial and Commercial Bank of China on December 20, 2019, with bank account number 1209260629200096113. Zhonghui Certified Public Accountants (Special General Partnership) has verified the funds received and issued Verification Report No. Zhonghui Huiyan [2019]5170.

On December 7, 2021, Xianhe Co., Ltd. issued a public listing announcement for convertible bonds. The total funds raised from this public issuance were 2.05 billion yuan, with net funds of 2.03815 billion yuan after deducting issuance expenses of 11.84 million yuan (excluding tax). The raised funds will be fully used for projects including the “Annual Production of 300k Tons of High-End Paper-Based Materials,” “Annual Production of 30k Tons of Thermal Sublimation Transfer Printing Paper and Food Packaging Paper,” “Annual Production of 10 Billion Paper Straws,” and replenishing working capital. The funds were transferred into the designated escrow account of the company’s raised funds by the sponsor (lead underwriter) on November 23, 2021. Zhonghui Certified Public Accountants (Special General Partnership) has verified the funds and issued Verification Report No. Zhonghui Huiyan [2021]7734.

In total, the three fundraising activities of Xianhe Co., Ltd. amount to 4,142.58 million yuan.

(Editor: Wei Jingting)