Recently, Shenma announced that it had received the Shanghai Stock Exchange's "Information Disclosure Supervision Letter on Shenma Industrial Co., Ltd.'s 2023 Annual Report". The supervision letter required Shenma to explain-the reasons for the decline in many financial indicators of the company, the reasons why the investment progress did not meet the plan, and the reasons why the investment progress of projects in progress exceeded 100% but were not yet completed.

    In late May 2025, Shenma disclosed in a partial reply to the "Information Disclosure Supervision Work Letter on Shenma Industrial Co., Ltd. 2023 Annual Report" that the company will suspend the bisphenol A project with an annual output of 240,000 tons (Phase II) project construction.

    Shenma said: Although China's demand for bisphenol A will continue to grow in 2023, it will fall short of expectations, and the market price of bisphenol A will fall year-on-year throughout the year. In 2023, the gross profit margin of bisphenol A products will be low and will be at a loss.

    Combined with the gross profit margin of the company's existing projects, the performance of operating entities and the current market supply and demand situation, it is expected that the market price of bisphenol A will not increase significantly in the short term, and the company's construction of the fundraising project as planned will have no economic benefits. If the company builds a fundraising project according to the original plan, it will further aggravate the losses of the main implementation of carbon poly-materials, thereby damaging the interests of minority shareholders.

    To sum up, the company has no economic benefits in building the fundraising project as planned, and the company will not or delay the construction of the bisphenol A project (Phase II) with an annual output of 240,000 tons. Source: Inner Mongolia Chemical Industry