Recently, Henan’s first Shanghai-listed company, Shenma Co., Ltd. (600810.SH), announced that it was formally investigated by the China Securities Regulatory Commission for suspected violations of information disclosure laws and regulations.
Only five months have passed since the last time it received a regulatory warning letter. This once world-renowned leader in the entire nylon 66 industry chain is facing a double test of compliance and operations.
This time the filing of the case did not come out of the blue.
In the first three quarters of 2025, Shenma Co., Ltd. carried out large-scale financial leasing business with its controlling shareholder and its subsidiaries. The actual amount incurred far exceeded the expectations at the beginning of the year. However, it failed to perform review procedures and information disclosure obligations in accordance with regulations. It has already been named and warned by the local Securities Regulatory Bureau.
At the same time, the company has repeatedly revised data in performance forecasts and periodic reports, and frequently adjusted the accounting of projects under construction and depreciation provisions. The lack of rigor and stability of financial information has also attracted continued attention from regulators and the market.
As a veteran state-owned enterprise that entered the capital market in 1994, Shenma’s industry status cannot be underestimated.
Its predecessor is Pingdingshan Nylon Cord Fabric Factory. It is one of the few companies in the world with a complete nylon 66 industrial chain. Its products are directly supplied to core fields such as tires, automobiles, and textiles. It once occupied an important share of the global cord fabric market and is an iconic enterprise in Henan’s chemical industry sector.
But under the halo, pressure has quietly accumulated.
In recent years, the company’s profits have continued to decline, and in 2025 it turned from profit to loss. The net profit loss attributable to the parent company exceeded 200 million yuan, and the operation was under obvious pressure.
The new regulatory filing also exposed the company’s obvious shortcomings in internal management: the internal control system still has room for improvement, and the management of related-party transactions is not rigorous enough; the standardization of financial accounting needs to be strengthened, and multiple data revisions affect the credibility of information; corporate governance and compliance awareness still need to be further strengthened, and the initiative of risk prevention and control is insufficient.
What happened to Shenma Co., Ltd. is not an isolated case, but a profound compliance lesson for the entire tire and upstream chemical industry.
Information disclosure is the untouchable bottom line for listed companies. Key information such as related-party transactions and financial data must be standardized, transparent and traceable throughout the process. Any oversight may turn into a systemic risk.
In a manufacturing industry with strong cycles, companies must build a “safety cushion” with internal control and governance to avoid internal management loopholes from amplifying the impact of market fluctuations.
In an era of increasingly stringent supervision, passive rectification is no longer feasible. Only by proactively building a full-process compliance system and integrating standardized operations into daily operations can we achieve stable and long-term progress.
As a former leader in the industrial chain, we should shoulder the responsibility of setting a benchmark, safeguard the foundation of long-term development with sound governance, and prevent our advantages from being eroded by management shortcomings.
From the industry leader to the center of public opinion, Shenma reminds all companies with reality: compliance is not a burden, but the strongest confidence; governance is not a formality, but the most stable moat.
For the entire tire industry chain, the standardization and stability of upstream raw material companies are directly related to the safety and confidence of the entire supply chain.
Holding the bottom line and consolidating internal strength are the only answers to transcend cycles and gain a long-term foothold.
