Shenda Shares (600626): Sub Company'S Pollution Exceeding The Standard Was Fined 350 Thousand

At the beginning of the year of the lunar year, Shenda shares received the first administrative ticket of the new year.

In February 15th, Shen Da shares announced that its controlling shareholder, Shanghai Shenda Kebao New Material Co., Ltd. (hereinafter referred to as "Shenda Kebao"), was fined 350 thousand yuan for the "administrative penalty decision" issued by Pudong New Area Administrative Law Enforcement Bureau of Pudong New Area due to excessive emission of air pollutants.

In February 25th, Shen Da shares announced that the subsidiary company, Shenda Dakota, received "administrative penalty decision" because of excessive pollution.

According to the punishment book, Schenda KB's emission of atmospheric pollutants exceeds the air pollutant discharge standards or exceeds the total emission control targets of the key air pollutants. The act violates the provisions of the eighteenth law of the People's Republic of China air pollution control act. According to the provisions of the ninety-ninth articles and second items of the "China's air pollution prevention and control law of the Republic of China", it decides to impose a fine of 350 thousand yuan on Schenda KB, and ordered to immediately correct the illegal behavior of exceeding the standard discharge of air pollutants.

Public information shows that Shen Da shares hold 94.57% stake in Shenda group, and the former has absolute control.

The announcement shows that as at December 31, 2017, the total assets of the company were 241 million yuan, the net assets were 224 million yuan, the main business income was 190 million yuan in 2017, and the net profit was 9 million 161 thousand and 500 yuan. The above main financial indicators accounted for 2.23%, 8.73%, 1.72% and 4.74% of the company's 2017 consolidated statements respectively.

In regard to administrative penalty, Shen Da shares said in the announcement: "the administrative penalty mentioned above also has no significant impact on the company's day-to-day business activities.

The company will continue to follow up the progress of this matter, fulfill the obligation of information disclosure in accordance with relevant regulations, and invite investors to pay attention to investment risk.

Regarding the rectification requirements of environmental protection issues and whether or not the subsidiary companies will stop production later, the Securities Daily reporters call the directors of Shenda securities office and the other side said: "the amount of punishment currently only accounts for a small part of the listed companies, and the impact is very small. Due to the specific change notice and other related documents have not yet come down, the subsequent related processes will be disclosed in a timely announcement."

This is not the first time in history that a listed company has been punished for environmental protection.

The environmental storm in 2018 triggered a wave of illegal filing of many listed companies.

In 2018, more than 40 A share listed companies were punished by the environmental protection department for environmental protection problems. Subsequently, the market value of some companies fell all the way.

More seriously, some listed companies are wearing ST's hat because of the serious impact of environmental shutdown on production and operation.

In August 31st last year, the seven ministries and commissions of the people's Bank of China and the NDRC jointly issued the "guiding opinions on the construction of a green financial system".

The SFC revised and published the contents and guidelines of information disclosure of public offering securities companies. By the end of 2020, all listed companies will be required to disclose environmental information.

The SFC said in 2016 that it will continue to maintain a high degree of law enforcement against illegal activities of major environmental pollution in the future.

According to the regulations, there is a violation of environmental protection laws, administrative regulations or regulations in the last 36 months, and administrative penalties and circumstances are serious or criminal penalties shall not be issued publicly.