Shandong Hiking International Co., Ltd. (600735.SH) suspended trading on February 26. According to a company announcement disclosed on February 25, the trading halt was triggered by the company's failure to resolve issues related to capital occupation by its shareholders and affiliated parties before the mandated rectification deadline of February 25, 2026. Specifically, in August 2025, the company received an administrative supervision decision from the Qingdao branch of the China Securities Regulatory Commission. As of the disclosure date of the 2025 interim report, the company's indirect controlling shareholder, Shandong Hiking Group Co., Ltd., and its affiliates had non-operationally occupied company funds totaling 406 million yuan. Shandong Hiking International was required to recover the occupied funds within six months. However, as of February 25, Shandong Hiking Group and its affiliates had repaid zero yuan of the occupied funds, and a specific solution for the capital occupation had not yet been determined. Consequently, trading of Shandong Hiking International's shares was suspended on February 26. Related announcements indicate that this suspension period will not exceed two months. If the company completes the required rectifications within the suspension period, its shares will resume trading. If the company fails to complete the rectifications within the suspension period, the Shanghai Stock Exchange will impose a delisting risk warning on the company's shares, after which they will resume trading. If the rectifications are still not completed within two months after resuming trading, the exchange will decide to terminate the listing of the company's shares. Founded in 1993 and headquartered in Qingdao, Shandong Hiking International is one of the leading enterprises in the hair products export segment and has also expanded into graphite new materials and cross-border import e-commerce businesses. In terms of ownership structure, the company is indirectly controlled by Shandong Hiking Group through Shandong Lujin Import and Export Group Co., Ltd. It is noteworthy that both Shandong Lujin Group and Shandong Hiking Group were ruled by the court to accept bankruptcy reorganization on January 20. Shandong Hiking International stated that it will declare its claims in accordance with the law during the bankruptcy proceedings. According to the Enterprise Bankruptcy Law, the non-operational funds occupied by Shandong Hiking Group and its affiliates are treated as ordinary claims, which carries a risk of low recovery rates and potential failure to obtain full repayment. In addition to the trading suspension announcement, on February 25, Shandong Hiking International also disclosed that it had received a notice of立案 (case filing). According to this announcement, the China Securities Regulatory Commission has decided to investigate the company due to suspected violations of information disclosure regulations. Simultaneously, the company's actual controller, Zhang Jianhua, is also under investigation for suspected information disclosure violations. Regarding performance, according to the company's 2025 earnings forecast, it expects a net loss of between 95 million yuan and 142 million yuan for 2025. The loss is primarily attributed to year-end impairment tests conducted on relevant assets based on the principle of prudence. After analysis and preliminary assessment, the company plans to provision for impairment on certain assets and goodwill showing signs of impairment, mainly including goodwill impairment, inventory write-downs, and credit impairment losses. In the secondary market, prior to the trading suspension, the company's stock price had generally been on an upward trend. Since January 2026, the stock price has accumulated an increase of over 41%. As of the last trading day before the suspension on February 25, the stock closed at 6.73 yuan per share, with a total market capitalization of 2.886 billion yuan.
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