Shanying International (600567.SH) announced on the evening of November 3 that its actual controller and chairman had received a Notice of Investigation from the China Securities Regulatory Commission (CSRC).
Following the announcement, Shanying International's shares opened lower and hit the daily trading limit on the morning of November 4, closing at RMB 1.05 per share.
According to the announcement, Wu Mingwu, the company's actual controller and chairman, received a Notice of Investigation from the CSRC. The regulator has decided to investigate him on suspicion of insider trading and short-swing trading.
The company said the investigation concerns Wu Mingwu in his personal capacity and is unrelated to its operations or business activities. It is not expected to affect the company's production or operations. Wu will actively cooperate with the CSRC's investigation. Shanying International said it would continue to monitor developments and fulfill its information-disclosure obligations in a timely manner in accordance with applicable laws, regulations and regulatory requirements.
The company's previously disclosed third-quarter report showed that, in the first nine months of 2026, Shanying International recorded revenue of RMB 21.612 billion, up 2.26% year on year. Total profit was a loss of RMB 1.175 billion, while net loss attributable to shareholders of the listed company was RMB 1.143 billion. Net loss after deducting non-recurring items amounted to RMB 1.179 billion, and basic loss per share was RMB 0.18. Net cash generated from operating activities reached RMB 2.305 billion, an increase of 8.45% year on year.
The company attributed the year-on-year shift from profit to loss in total profit, net profit, adjusted net profit and earnings per share mainly to a decline in gross profit during the period from the beginning of the year to the end of the reporting period, compared with the same period last year.
A breakdown by quarter indicates that the company's operating performance was gradually recovering. In the third quarter of 2026, Shanying International generated revenue of RMB 7.352 billion, a modest increase of 0.84% year on year, while net loss attributable to shareholders of the listed company was RMB 461 million.
In the first half of this year, the company reported revenue of RMB 14.259 billion, up 3.01% year on year, and a net loss attributable to shareholders of RMB 682 million. Its second-quarter loss narrowed by RMB 313 million compared with the first quarter, representing a quarter-on-quarter reduction of 62.95%. The company had previously disclosed that its overall business returned to monthly profitability in June, indicating a measure of improvement in its operating performance.
In terms of its shareholding structure, Fujian Taisheng Industrial Co., Ltd. is Shanying International's controlling shareholder, holding a total of 1.342 billion shares, or 21.62% of the company's total share capital. Wu Mingwu and Xu Lifan are the company’s joint actual controllers. Wu directly holds 56.2433 million shares, representing 0.91% of the company. Of these, 56.2296 million shares are currently pledged.
In addition, Wu's younger sister, Wu Liping, holds 122 million shares, or 1.97% of the company, while his brother-in-law, Lin Wenxin, holds 64.2552 million shares, or 1.04%. The shares held in Lin's name are currently subject to a judicial freeze.
Shanying International's shares have generally underperformed this year. Before the announcement was released on November 3, the company's year-to-date share price, adjusted for dividends and rights issues, had fallen by more than 30%. Compared with the intraday high of RMB 1.77 reached in March, the latest closing price of RMB 1.17 represented a decline of approximately 40%.
Public information identifies Shanying International as one of China's leading paper manufacturers. Its business spans the integrated utilization of green resources, industrial and specialty paper manufacturing, and customized packaging products. Its principal products include containerboard, corrugating medium, specialty paper, paperboard and paper-based packaging products. The company also engages in the domestic and international trade of recovered fiber.
Shanying International has also introduced a share repurchase and cancellation plan this year. In an announcement dated November 1, the company said that, as of October 31, it had repurchased a total of 4.056 million shares through centralized bidding transactions, representing 0.07% of its total share capital. The highest and lowest repurchase prices were RMB 1.24 and RMB 1.21 per share, respectively. The total amount paid was approximately RMB 4.9995 million, excluding transaction costs.
