A law firm in Shanghai has recently submitted compensation claims on behalf of several investors to a court for filing and trial, and eligible investors can still register to join the claim.
The legal action against the company is connected to a penalty notice. On September 4, Shandong Hiking International Co., Ltd. (ST Hiking International) announced that the company and relevant personnel received an Administrative Penalty Decision and an Administrative Regulatory Measures Decision issued by the Qingdao Regulatory Bureau of the China Securities Regulatory Commission.
Due to failure to timely disclose non-operational fund occupation by related parties, as well as major omissions or false records in multiple periodic reports, the company and several responsible individuals were ordered to rectify, given warnings, and collectively fined 17.8 million yuan.
According to the CSRC investigation, between November 2021 and August 2025, the company accumulated non-operational fund occupation by related parties amounting to 3.936 billion yuan, which was not disclosed in a timely manner, and multiple periodic reports contained major omissions and false records.
Attorney Liu Peng from the Shanghai law firm stated that according to the Securities Law and relevant judicial interpretations, investors who suffered losses due to information disclosure violations by listed companies may file civil compensation lawsuits in accordance with the law.
Based on the penalty, the claim conditions are: investors who purchased shares between April 29, 2022 and August 26, 2025, and sold or still held shares after August 27, 2025 with resulting losses are eligible to join the claim.
According to the Administrative Penalty Decision, from November 2021 to August 2025, funds from ST Hiking International and its subsidiaries were transferred through intermediaries to the indirect controlling shareholder Hiking Group Company and its related parties, constituting non-operational fund occupation by related parties.
Non-operational fund occupation matters should be disclosed in a timely manner as required, and ST Hiking International failed to fulfill its information disclosure obligations on time. The 2021 annual report, 2022 semi-annual report, 2022 annual report, 2023 semi-annual report, 2023 annual report, and 2024 semi-annual report all failed to disclose the aforementioned fund occupation matters, resulting in major omissions in periodic reports.
Eligible investors are encouraged to actively participate in the claim to recover their losses.
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