8 Listed Companies Exposed to Environmental Risks, China State Railway Group Holding Company Project Built Without Approval and Fined | A-Share Green Weekly Report

The environmental impact report for the project was not approved before construction began, and China Railway Group (SH601390) its controlling company was fined 930,000 yuan; exceeding permitted emission concentrations and polluting emissions, Sanhai A (SZ000012), its controlling company, received a fine of 496,000 yuan…

In the third week of March 2026, which listed companies raised red flags regarding environmental protection and information disclosure responsibilities? Let’s see the A-share Green Weekly Report Issue 237.

Daily Economic News, in collaboration with the well-known NGO in the environmental field, the Public Environment Research Center (IPE), has been collecting and analyzing authoritative data since September 2020 from 31 provinces (autonomous regions, municipalities directly under the central government), and 337 prefecture-level cities’ government releases on environmental quality, emissions, and pollution source regulation records. Weekly, it compiles environmental information on thousands of listed companies and tens of thousands of subsidiaries (including branches, shareholding companies, and controlling companies), publishing the “A-Share Green Weekly Report” to promote transparency and sunshine in the environmental information of corporate operations in the capital market through environmental databases and professional analysis and dissemination.

Based on data collected in the third week of March, the Daily Economic News reporter found that eight listed companies recently exposed environmental risks.

Weekly Green Review: Construction without approval,

China Railway Group’s controlling company fined

Beyond management capabilities, financial status, and industry competition, environmental risks are increasingly becoming a significant operational risk for listed companies. Environmental risks concern corporate development and corporate image.

Distribution of listed companies involved in environmental risk violations (Third week of March)

The data shows that violations related to ecological and environmental law-breaking involve eight listed companies, six of which are controlled by state-owned assets.

The Daily Economic News found that behind these eight companies, there are 1,078,300 shareholders, and their investment targets appear on the environmental risk list, potentially facing investment risks.

Notably, China Railway Group’s controlling company, China Railway Fourth Bureau Group Electrification Engineering Co., Ltd. (hereinafter referred to as China Railway Fourth Bureau Electrification), was fined 930,000 yuan by the Nanjing Ecological Environment Bureau for starting construction before the environmental impact report was approved.

The official document from the Nanjing Ecological Environment Bureau, numbered “Ninghuanfa [2026] 6,” states that the “Jiangsu Nanjing 500kV Sanqiu 5631/Chate 5632 Line Relocation Project” began construction in May 2025, involving 43 towers. According to the “2021 Edition of the List of Construction Project Environmental Impact Assessment Classification Management,” this project falls under “Category 55 Nuclear and Radiation / Subcategory 161 Transmission and Transformation Projects / 500kV and above,” which requires an environmental impact report. As the construction unit, China Railway Fourth Bureau Electrification prepared the report in July 2025 but had not obtained approval by the time of inspection. According to a valuation report issued by Jiangsu Guoheng Zhongce Land, Real Estate, and Asset Evaluation Consulting Co., Ltd., the market value of the involved 500kV Sanqiu/Chate power line relocation and tower project is approximately 66.16 million yuan.

The penalty notice also states that considering the project as a key supporting project and the progress of environmental assessment and rectification by China Railway Fourth Bureau Electrification, and based on the provisions of the “Yangtze River Delta Regional Ecological Environment Administrative Penalty Discretion Rules,” the fine was reduced within the statutory range. Ultimately, under Article 31 of the “Environmental Impact Assessment Law of the People’s Republic of China,” China Railway Fourth Bureau Electrification was ordered to immediately correct the illegal act and fined 930,000 yuan.

On March 18, the Daily Economic News reporter sent an interview request via China Railway’s official email. On March 19, the reporter called China Railway, and the staff said they would inform relevant personnel to check the interview request. As of the time of publication, no further response has been received.

Additionally, the official website of Huainan Ecological Environment Bureau issued a penalty notice numbered “Wanhuainanhuanfa [2026] 5,” showing that since January 2025, Huainan Huainan Power Generation Co., Ltd. (hereinafter referred to as Panji Power), a controlling company of Huainan Energy (SH600575), signed contracts with Jinghang Trading Co., Ltd. and Huajing Trading Co., Ltd. in Huainan to purchase and sell industrial solid waste generated by power plants, entrusting their transportation, utilization, and disposal. An inspection of the entrusted units’ business licenses revealed they lacked the technical capacity to dispose of general industrial solid waste. Moreover, Panji Power failed to verify the qualification and technical capacity of the entrusted parties, resulting in some fly ash being discharged into ditches, causing environmental pollution. Based on the “Solid Waste Pollution Prevention and Control Law of the People’s Republic of China,” Panji Power was fined 217,000 yuan by Huainan Ecological Environment Bureau.

On March 18, the Daily Economic News reporter sent an interview request via Huainan Energy’s official email. On March 19, the reporter called Huainan Energy, and the staff said they would check the request. No further response has been received as of the publication.

Environmental Penalties: Sanhai A’s controlling company

Fined for exceeding permitted emission concentrations

The data shows that Anhui Nanshi New Material Technology Co., Ltd., a subsidiary of Sanhai A (SH000012), was fined 496,000 yuan by the Chuzhou Ecological Environment Bureau for exceeding permitted emission concentrations.

The official document from the Chuzhou Ecological Environment Bureau, numbered “Wanchuhuan [2026] 14,” states that the bureau commissioned Anhui Haifeng Testing Technology Co., Ltd. to conduct supervision monitoring of Anhui Nanshi. The December 15, 2025, report showed that the low-concentration particulate matter emission from Phase I glass kiln outlet averaged 48.2 mg/m³ per hour, and ammonia was 14.6 mg/m³. For Phase II, particulate matter was 45.1 mg/m³. On December 20, 2025, monitoring showed that Phase I particulate matter exceeded 50 mg/m³, with other emissions within limits. The permitted emission limits for particulate matter and ammonia are 10 mg/m³ and 8 mg/m³, respectively. Based on the “Pollutant Discharge Permits Management Regulations,” Anhui Nanshi was fined 496,000 yuan.

On March 18, the Daily Economic News reporter sent an interview request via Sanhai A’s official email. On March 19, the reporter called Sanhai A, and the staff said they needed to verify the penalty details and would respond after processing. No further response has been received.

Additionally, the credit China record shows a penalty numbered “Tong 06 Huanfa [2026] 4,” where Nantong Xiangyu Marine Equipment Co., Ltd., a subsidiary of Xiamen Xiangyu (SH600057), was fined 296,000 yuan for constructing environmental protection facilities for a shipbuilding expansion project without acceptance and putting them into operation.

On March 18, the Daily Economic News reporter sent an interview request via Xiamen Xiangyu’s official email. On March 19, the reporter called Xiamen Xiangyu, and the staff said they would check the request. No further response has been received.

In recent years, as ESG (Environmental, Social, and Governance) investment concepts have gained popularity, investors are paying more attention to companies’ sustainable development capabilities. The environmental responsibilities of listed companies’ financial and strategic investments should also be emphasized, and environmental data of directly or indirectly involved enterprises are incorporated into the A-share green report database.

It should be noted that the disclosure of environmental information depends on the continuous improvement of environmental regulatory information transparency. From the 2008 “Measures for the Disclosure of Environmental Information (Trial)” to the revised “Environmental Protection Law of the People’s Republic of China,” Chapter 5 explicitly establishes “Information Disclosure and Public Participation,” ensuring institutional support for transparency.

Relevant laws and regulations stipulate that citizens, legal persons, and other organizations have the right to access environmental information, participate in, and supervise environmental protection. Environmental protection authorities at all levels and other departments responsible for environmental supervision should disclose environmental information and improve public participation procedures to facilitate public oversight.

The “2018-2019 Pollution Source Supervision Information Disclosure Index (PITI) Report” compiled by the Public Environment Research Center (IPE) and the Natural Resources Defense Council (NRDC) also indicates that environmental information is gradually recognized as a principle of “disclosure as the norm, non-disclosure as the exception.”

If you have questions about the environmental data of this project or need to communicate regarding environmental issues on the list, please contact Blue Map.

(Interns Hao Yuqing, Ren Yaxuan, and Cheng Yao also contributed to this article)