Over 200 million yuan raised through illegal financial management, Suda Shares named by Shenzhen Stock Exchange and Henan Securities Regulatory Bureau

Due to a违规理财操作 exceeding 200 million yuan, Shuda Co., Ltd. (SZ001277, stock price 41.30 yuan, market value 3.139 billion yuan), which has been listed for less than two years, received a “dual reminder” from regulators.

On March 2, 2026, the Shenzhen Stock Exchange and Henan Securities Regulatory Bureau issued regulatory and warning letters to Shuda Co., Ltd., directly pointing out that the company continued to purchase financial products and failed to redeem them in a timely manner after the authorization expired when managing idle raised funds.

This违规操作 stemmed from “staff negligence.” According to an announcement released by Shuda Co., Ltd. on January 24, 2026, the company not only illegally purchased 116 million yuan of financial products after the shareholder meeting authorization expired, but also had 128 million yuan of existing financial products that were not redeemed within the authorized period. Although the company’s board of directors approved these actions retroactively and proposed six rectification measures, the company still received a warning.

Shenzhen Stock Exchange and Henan Securities Regulatory Bureau Act Sequentially

On March 2, 2026, the Shenzhen Stock Exchange issued a regulatory letter to Shuda Co., Ltd., its Chairman Li Xiyuan, General Manager Liu Runping, and CFO and Board Secretary Xie Lizhi. Almost simultaneously, the Henan Securities Regulatory Bureau also took administrative supervisory measures by issuing warning letters to the company and the three senior executives, which were recorded in the securities and futures market integrity files.

[Image source: Shuda Co., Ltd. announcement]

Both regulatory documents reveal the same违规事实. Shuda Co., Ltd. used the idle raised funds for cash management with shareholder meeting authorization valid until October 23, 2025. However, after the authorization expired, the company not only failed to redeem some of the cash management financial products in time but also continued purchasing financial products without board approval and failed to disclose this information.

[Image source: Shuda Co., Ltd. announcement]

The Shenzhen Stock Exchange pointed out that Shuda Co., Ltd.'s behavior violated the “Stock Listing Rules (2025 Revision)” and the “Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 1—Standard Operation of Main Board Listed Companies (2025 Revision).” Henan Securities Regulatory Bureau believed that this conduct violated the “Regulations on the Supervision of Fundraising by Listed Companies” and the “Measures for the Administration of Information Disclosure by Listed Companies.”

As key personnel, Chairman Li Xiyuan, General Manager Liu Runping, and CFO and Board Secretary Xie Lizhi were held primarily responsible for failing to perform their duties diligently and were explicitly named in the regulatory notices.

Company Self-Disclosed Issue in January

Details of this regulatory incident had already surfaced in an announcement in January 2026. On January 24, 2026, Shuda Co., Ltd. voluntarily disclosed that the previous authorization for using raised funds for cash management had expired on October 23, 2025.

The announcement stated that during internal review, the company found that due to “staff negligence,” it purchased 116 million yuan of cash management financial products after the authorization expired. Additionally, 128 million yuan of financial products were purchased within the authorized period but not redeemed within the authorized timeframe.

Shuda Co., Ltd. completed its IPO in August 2024, raising approximately 526 million yuan net. On October 24 of the same year, the company’s second extraordinary general meeting approved a plan for the listed company and its subsidiaries to use no more than 300 million yuan of idle raised funds for cash management, with a 12-month authorization period.

Faced with the违规事实, the company’s board of directors held a meeting on January 22, 2026, retroactively approving the超期使用募集资金购买理财产品行为 and passing a new cash management proposal.

At the same time, the company proposed six rectification measures in the announcement, including stopping financial product purchases, redeeming overdue products, strengthening professional training, adding internal defenses, and optimizing information systems, aiming to prevent similar incidents through a series of “repairing the barn after the horse has escaped” measures.

Shuda Co., Ltd. also stated that this regulatory action would not affect the company’s normal production and operation activities.

While overdue redemption and failure to disclose raised funds timely may seem minor, only timely, accurate, and complete information disclosure by listed companies allows investors to assess whether the fund allocations meet the promises in the prospectus and whether the expected returns are achievable, enabling rational investment decisions.

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