On September 5, 2026, Shandong Hiking International Co., Ltd. (referred to as ST Hiking, stock code: 600735) announced receipt of an Administrative Penalty Decision and an Administrative Regulatory Measures Decision. The Qingdao Regulatory Bureau of the China Securities Regulatory Commission identified several violations.
Related Party Identification
Shandong Lujin Import and Export Group Co., Ltd. (Lujin Group) holds 43.27% of ST Hiking's shares, with Hiking Group Company directly and indirectly owning 100% of Lujin Group. Under relevant provisions of the Company Law and securities information disclosure regulations, both Lujin Group and Hiking Group Company qualify as related parties during the violation period.
Failure to Timely Disclose Non-Operating Fund Occupancy
From November 2021 to August 2025, funds from ST Hiking and its subsidiaries were transferred through intermediary parties to Hiking Group Company and its affiliates, constituting non-operating fund occupancy. Annual amounts included RMB 115 million in 2021 (11.22% of audited net assets), RMB 561 million in 2022 (49.21%), RMB 454 million in 2023 (29.44%), RMB 1.582 billion in 2024 (104.35%), and RMB 1.224 billion in 2025 (88.18%). The company failed to fulfill its disclosure obligations as required by the Securities Law.
Material Omissions and False Statements in Periodic Reports
Between November 2021 and June 2024, non-operating fund occupancy occurred with Hiking Group Company and its affiliates. The company failed to disclose these matters in its 2021 annual report, 2022 semi-annual and annual reports, 2023 semi-annual and annual reports, and 2024 semi-annual report. Additionally, for the 2023 semi-annual report, the company artificially adjusted its balance sheet by increasing monetary funds by RMB 190 million and decreasing other receivables by the same amount, representing 8.24% of total reported assets, constituting false records. All occupied funds were fully repaid in monetary form by April 20, 2026. The CSRC Qingdao Bureau imposed warnings and fines on the company and responsible individuals.
Earlier, on August 27, 2025, the company disclosed receiving administrative regulatory measures regarding non-operating fund occupation by the actual controller's company. According to the 2025 semi-annual report, the outstanding fund occupation balance reached RMB 406 million. On February 26, 2026, the company announced that the CSRC had filed a case against both the company and actual controller Mr. Zhang Jianhua for suspected information disclosure violations. An advance notice of administrative penalty was received on July 18, 2026.
Under the Civil Code, Securities Law, and Supreme People's Court judicial interpretations on false statement compensation, listed companies, controlling shareholders, actual controllers, directors, supervisors, senior management, and intermediaries bear civil liability for investor losses caused by securities fraud. Compensation covers investment differences, commissions, stamp duties, and interest losses.
Investor Claims and Eligibility
Attorney Song Yixin of Shanghai Hanlian Law Firm is now accepting claims from affected investors. Eligible investors purchased ST Hiking stocks or publicly issued products between May 8, 2025, and August 26, 2025, and either sold or continued holding them on or after August 27, 2025. Investors should note that eligibility conditions may be adjusted based on the final administrative penalty conclusions and court judgments.
Important Legal Considerations
The claimed conditions are for reference only and do not constitute investment advice. Although investors can now file lawsuits directly without waiting for administrative penalties, there are risks in relying solely on investigation notices or administrative measures. Administrative penalty decisions remain an important prerequisite for litigation. Delisting does not affect the civil compensation process but may impact its progress, while bankruptcy proceedings could cause more significant delays. Investors may choose whether to participate in representative litigation.
Required documentation includes ID copies, securities account confirmation forms, and complete transaction records bearing brokerage seals. Attorney Song, a partner at Shanghai Hanlian Law Firm who has practiced since 1992, has provided legal services for over 10,000 securities litigation and shareholder dispute cases, and has authored several books on securities law and investor protection.
Comments