Xianfeng New Material's supplementary review of a related-party transaction proposal was rejected by the board of directors, and a transaction by its wholly owned subsidiary Zhejiang Shengtaige New Materials to purchase shares held by the spouse of a former supervisor was urgently halted. On February 2, 2026, Zhejiang Shengtaige purchased 1 million shares of Jiaxing Jiete New Materials at 17.6 yuan per share, totaling 17.6 million yuan, from Ge Danping, spouse of former company supervisor Zhu Linzhi, representing 2.9 percent of Jiete New Materials' total share capital. The company identified Ge Danping as a related natural person based on a strict and prudent principle, but on August 13 the board rejected the supplementary review proposal with zero votes in favor and four against. Independent directors believed the transaction pricing was not based on a third-party appraisal and its fairness could not be effectively guaranteed. On the same day, Zhejiang Shengtaige signed a share transfer termination agreement with Ge Danping, requiring the counterparty to refund the 17.6 million yuan within three working days. If the refund is overdue, Ge Danping must pledge the Jiete New Materials shares she holds and pay interest on the occupied funds. For any portion not refunded beyond three months, a penalty of 0.05 percent per day will be charged. The company cautioned that there remains a risk the counterparty may fail to refund the full amount on time, which could result in non-operating fund occupation.
Ningbo Xianfeng New MaterialBoard rejected related-party transaction, halting purchase and risking fund occupation.
Subsidiary's transaction halted, requiring refund and facing penalty risk.
