JINSHENG(SZ:300849) Sou Hu Cai Jing·2025-10-24 09:52Core Viewpoint - Zhejiang Jinsheng New Materials Co., Ltd. faces regulatory penalties for failing to disclose related party transactions involving the chairman's nephew, coinciding with a recent share reduction plan by the second-largest shareholder [1][3][5] Group 1: Regulatory Issues - The company received an administrative penalty notice from the Zhejiang Securities Regulatory Bureau for not disclosing a related party transaction involving its chairman's nephew, who was awarded a construction contract worth 1.18 billion yuan [3][5] - The contract was later amended to a total of 1.50 billion yuan, with significant transaction amounts occurring in 2022, which constituted 18.6% of the company's audited net assets for that year [4][5] - The regulatory body plans to impose a fine of 1.5 million yuan on the company and additional fines on four responsible individuals, totaling 5.5 million yuan [5][6] Group 2: Financial Performance - Since its IPO in July 2020, the company has experienced a decline in revenue and profits, with a 24.3% drop in revenue to 260 million yuan in 2020 and a 47.46% decrease in net profit [7][8] - The company has reported consecutive losses over the past three years, with net profits of -22.51 million yuan in 2022 and -22.64 million yuan in 2024 [8] - In the first half of 2025, the company continued to report losses, with a revenue of 151 million yuan, down 9.33% year-on-year [8] Group 3: Shareholder Actions - The second-largest shareholder, Ningbo Liyi Venture Capital Center, announced a plan to reduce its holdings by up to 300,000 shares, representing 2% of the total share capital [9][10] - This shareholder had previously faced penalties for violating reduction commitments, having sold shares below the promised minimum price [11]