JINSHENG(SZ:300849) Mei Ri Jing Ji Xin Wen·2025-10-22 16:38Core Viewpoint - The article discusses a significant case of related party transactions involving Jinsheng New Materials (300849), where the chairman designated a supplier to his nephew for a construction project, leading to regulatory scrutiny and penalties for the company and its executives [1][2][4]. Group 1: Related Party Transactions - Jinsheng New Materials signed a construction contract with Zhejiang Hongxiang Construction Engineering Co., Ltd. for a project valued at 1.18 billion yuan, which later escalated to approximately 1.5 billion yuan due to increased costs [1][3]. - The actual contractor for the project was the chairman's nephew, who was given control over project management, procurement, and financial dealings, raising concerns about the legitimacy of the transaction [2][3]. - The related party transaction was not properly disclosed until two months before the company received a notice from the regulatory authority, indicating a lack of adherence to required procedures [2][3]. Group 2: Financial Impact - Jinsheng New Materials reported annual revenues below 400 million yuan and net profits not exceeding 40 million yuan since its listing, highlighting the financial strain of the related party transaction [4]. - The total amount of related party transactions in 2022 reached 1.2 billion yuan, accounting for 18.6% of the company's audited net assets, which was not disclosed in the annual report [4]. - The penalties imposed on Jinsheng New Materials included a warning and a fine of 1.5 million yuan, with several executives also facing administrative penalties for their roles in the related party transactions [4].