Shenwu Energy Saving Co., Ltd., a once-venerated technical provider in China’s industrial environmental sector, has become the latest target of the China Securities Regulatory Commission (CSRC). The company, trading as *ST Jieneng, announced on June 2 that it had received an official investigation notice for alleged violations of information disclosure laws. The news sent shares tumbling to their daily limit, with over 30 million sell orders left unexecuted, highlighting the deepening crisis for a firm that was once a darling of institutional investors.
The regulatory probe marks a staggering fall from grace for a company that saw its stock price soar 16-fold over a nine-year period, reaching a peak market capitalization of nearly 29 billion yuan in 2017. Together with its sister company, Shenwu Environmental, the 'Shenwu Twins' were once a powerhouse duo valued at 65 billion yuan. Today, that luster has entirely evaporated; *ST Jieneng has lost more than 90% of its peak value, with its market cap shrinking to a mere 2.2 billion yuan as retail investors scramble for the exits.
Financial data reveals a pattern of persistent instability, with the company reporting four consecutive years of net losses between 2022 and 2025. Despite a slight revenue uptick in the first quarter of 2026, the company remains in the red, and its efforts to shed its 'Special Treatment' (*ST) status—a designation for companies at risk of delisting—remain precarious. While the firm applied to the Shenzhen Stock Exchange to remove the warning labels in late April, the current CSRC investigation is likely to stall that process indefinitely.
The human element of the collapse is equally dramatic, centered on founder Wu Daohong, who was featured on the Forbes China Rich List in 2017 with a fortune exceeding 7 billion yuan. His trajectory from a celebrated green-tech visionary to the head of a debt-ridden entity reflects the volatile nature of China’s private industrial sector. After surviving a brush with 'penny-stock' delisting in 2020, the company now faces its most existential threat yet as regulators prioritize market integrity over historical corporate pedigree.