Due to its subsidiary's five consecutive years of financial fraud, Shandong Meichen Science&Technology Co.,Ltd. (300237) will be suspended for one day tomorrow (September 29), and upon resumption, will be subject to other risk warnings. The stock's abbreviated name will change from "美晨科技" to "ST美晨".
On March 31 this year, Shandong Meichen Science&Technology Co.,Ltd. announced receiving a case filing notice from the China Securities Regulatory Commission (CSRC), as the company was suspected of illegal information disclosure violations, leading to the CSRC's decision to open an investigation. Six months later, on the evening of September 26, an "Administrative Penalty Prior Notice" issued by the Shandong Securities Regulatory Bureau exposed the fact that Shandong Meichen Science&Technology Co.,Ltd.'s wholly-owned subsidiary Saishi Garden had committed financial fraud for five consecutive years.
According to investigations, from 2014 to 2018, Shandong Meichen Science&Technology Co.,Ltd.'s wholly-owned subsidiary Saishi Garden inflated revenue by a cumulative 14.38 billion yuan and inflated profits by 6.58 billion yuan through false procurement of labor services and seedlings, false sales of seedlings, and artificially reducing expenses.
In the notice, the Shandong Securities Regulatory Bureau proposed to impose a fine of 600,000 yuan on Shandong Meichen Science&Technology Co.,Ltd. and give warnings and varying degrees of fines to 12 related responsible persons. Among them, Guo Baifeng, former chairman of Saishi Garden, is proposed to be fined 300,000 yuan and be subject to a 10-year securities market ban.
Public information shows that Shandong Meichen Science&Technology Co.,Ltd. went public in June 2011. In September 2014, Shandong Meichen Science&Technology Co.,Ltd. purchased 100% equity of Saishi Garden held by Guo Baifeng and others through share issuance and cash payment. In its 2014 annual report, Shandong Meichen Science&Technology Co.,Ltd. stated that the company completed the acquisition of Saishi Group, successfully entering the environmental protection field and achieving a key step in the company's strategic transformation. That year, Shandong Meichen Science&Technology Co.,Ltd.'s revenue increased dramatically by 89.69%, with the acquisition of Saishi Garden being attributed as one of the reasons for its revenue growth.
In April this year, Shandong Meichen Science&Technology Co.,Ltd. released a major asset disposal plan. In the plan, Shandong Meichen Science&Technology Co.,Ltd. stated that the company intends to sell 100% of Saishi Garden's shares, with Julong Chemical Fiber as the transaction counterpart. After the transaction is completed, the company will divest its garden-related business and focus on automotive parts business.
Also facing suspension tomorrow and "special treatment" the day after is Shandong Hiking International Co.,Ltd. (600735), which received an "Administrative Regulatory Measures Decision" from the Qingdao Securities Regulatory Bureau a month ago due to non-operating fund occupation of 406 million yuan by the company's controlling shareholders and related parties.
On September 26, due to failure to recover the 406 million yuan in funds non-operationally occupied by Xinhuajin Group and its related parties within one month, Shandong Hiking International Co.,Ltd. still "welcomed" other risk warnings. Its stock will be suspended for one day on September 29, 2025, and upon resumption will be subject to other risk warnings, with the stock's abbreviated name changing from "新华锦" to "ST新华锦".
On the evening of August 26, 2025, Shandong Hiking International Co.,Ltd. received an "Administrative Regulatory Measures Decision" issued by the Qingdao Securities Regulatory Bureau. Regarding how to settle the non-operating fund occupation, Shandong Hiking International Co.,Ltd. stated in its proposed measures that on May 7 this year, fund occupiers Xinhuajin Group and Lujin Group signed an "Equity Transfer Agreement" with Tsingtao Brewery, intending to sell 100% equity of Shandong Jimo Rice Wine Factory under Xinhuajin Group to Tsingtao Brewery for a cash consideration of 665 million yuan. Meanwhile, Shandong Hiking International Co.,Ltd. signed a "Repayment Agreement" and "Pledge Guarantee Contract" with Xinhuajin Group and Lujin Group, pledging the above 665 million yuan accounts receivable to Shandong Hiking International Co.,Ltd., with pledge registration already completed.
At that time, staff at Shandong Hiking International Co.,Ltd. had said: "Signing relevant agreements with Tsingtao Brewery is currently the company's greatest hope." Regarding how to strive for early application to cancel the risk warning, Shandong Hiking International Co.,Ltd. stated that the company is urging Xinhuajin Group to actively advance the equity delivery matters of Shandong Jimo Rice Wine Factory. At the same time, Shandong Hiking International Co.,Ltd. also requires Xinhuajin Group to accelerate the revitalization and disposal of other assets, raise funds through multiple channels, and quickly settle the company's occupied funds.
As of August 29, 2025, Shandong Meichen Science&Technology Co.,Ltd. had 65,757 shareholder accounts; as of June 30, 2025, Shandong Hiking International Co.,Ltd. had 22,849 shareholder accounts.
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