ST Chenming announced that part of the shares held by its controlling shareholder, Chenming Holdings, have been subject to judicial freezing and pending freezing, with the cumulative frozen shares reaching 456 million shares, accounting for 55.59 percent of its total holdings. The latest additions include 45.8249 million shares under judicial freezing and 37.6971 million shares under pending freezing. Chenming Holdings has not yet received relevant case documents, and the reasons for the freeze and the amount of debt involved remain unknown. The company stated that the freeze will not lead to a change in actual control, nor will it have a material adverse impact on operations. In addition, 20.826 million shares held by Chenming Holdings will be auctioned by the Beijing Dongcheng District People's Court from August 13 to 14, 2026, representing 2.54 percent of its holdings. Market participants noted that the freezing of more than half of the controlling shareholder's stake, combined with the upcoming judicial auction, could raise concerns about equity stability. ST Chenming recorded losses for three consecutive years from 2023 to 2025, with cumulative losses of approximately 16.988 billion yuan, but it expects a loss of 700 to 800 million yuan in the first half of 2026, a significant narrowing of losses compared to the same period last year.
Shandong Chenming Paper Holdings LtdControlling shareholder's stake frozen and judicial auction set, raising equity stability concerns.