According to the Zhitong Finance App, Shenwu Energy Saving (000820.SZ) announced that Shenwu Technology Group Co., Ltd., the controlling shareholder of the company, recently received the “Decision on Imposing Corrective Measures on Shenwu Technology Group Co., Ltd.” from the Jiangxi Regulatory Bureau of the China Securities Regulatory Commission (“Jiangxi Securities Regulatory Bureau”).

According to reports, the controlling shareholder signed the “Profit Forecast Compensation Agreement” and the “Supplementary Agreement to the Profit Forecast Compensation Agreement” with the company in August 2015 and April 2016 respectively, promising that the company's project (Jiangsu Metallurgical Design Institute Co., Ltd.) would achieve net profit of no less than 300 million yuan, 400 million yuan and 500 million yuan respectively in 2016, 2017 and 2018, and agreed that when the actual profit figure falls below the net profit promise, the controlling shareholder will pay performance compensation. According to the 2016-2018 annual report announced by the company, the profit realized by the project did not reach the promised amount. Up to now, the controlling shareholder has not fulfilled its performance compensation promise.

According to the announcement, the above actions of the controlling shareholder constituted a breach of commitment in section 15 of the “Supervisory Guidelines for Listed Companies No. 4 - Listed Companies and Their Related Commitments” (Securities Regulatory Commission Notice [2022] No. 16). According to section 17 of the “Supervisory Guidelines for Listed Companies No. 4 - Listed Companies and Related Commitments” (Securities Regulatory Commission Notice (2022) No. 16), the Jiangxi Securities Regulatory Bureau decided to take corrective measures against controlling shareholders.