Nuode New Materials Co Ltd Faces Regulatory Scrutiny

In a significant development for Nuode New Materials Co Ltd, the company’s controlling shareholder, Chen Lizhi, and director Xu Songqing have been notified by the China Securities Regulatory Commission (CSRC) of an investigation into alleged regulatory violations. This news, reported on April 25, 2025, has sent ripples through the financial community, particularly affecting the company’s standing on the Shanghai Stock Exchange.

Nuode New Materials Co Ltd, headquartered in Shenzhen, China, is a key player in the industrial sector, specializing in the production of copper materials essential for lithium-ion batteries. The company’s portfolio includes lithium battery copper foils and other related materials, with ambitions to expand into new materials such as heat shrink, cold shrink materials, and synthetic rubber.

Despite the regulatory challenges, Nuode has reassured stakeholders that its operations remain unaffected. The company has stated that its business and management activities continue as usual and that it will cooperate fully with the CSRC during the investigation. Nuode is committed to adhering to all legal and regulatory requirements, ensuring timely disclosure of information as mandated.

The company’s stock, listed on the Shanghai Stock Exchange, has experienced volatility in recent months. As of April 24, 2025, the closing price was 3.51 CNH, a significant drop from its 52-week high of 5.43 CNH in November 2024. The market capitalization stands at 6.09 billion CNH, reflecting the market’s cautious stance amidst the ongoing investigation.

Nuode’s financial metrics, including a negative price-to-earnings ratio of -26.94, highlight the challenges it faces in a competitive and rapidly evolving industry. The investigation by the CSRC, focusing on alleged failures to disclose related party transactions, underscores the importance of transparency and compliance in maintaining investor confidence.

As the situation unfolds, investors and industry observers will be closely monitoring Nuode’s response to the regulatory scrutiny. The company’s ability to navigate this challenge will be crucial in determining its future trajectory in the competitive landscape of electrical equipment and new materials development.

For more information on Nuode New Materials Co Ltd and its offerings, stakeholders can visit the company’s website at www.ndgf.net . The company’s initial public offering on September 19, 1997, marked the beginning of its journey in the public market, a journey that continues to evolve amidst the complexities of modern financial regulations.