On September 4, Shandong Hiking International Co.,Ltd. (ST Hiking) announced that the company and related individuals had received the "Administrative Penalty Decision" and "Administrative Supervision Measures Decision" from the China Securities Regulatory Commission (CSRC) Qingdao Bureau. Due to failure to disclose non-operating fund occupation by related parties in a timely manner, and material omissions or false records in multiple periodic reports, the company and several responsible personnel were ordered to rectify and issued warnings, with total fines amounting to 17.8 million yuan.
According to the CSRC investigation, between November 2021 and August 2025, the company accumulated related-party non-operating fund occupation totaling as much as 3.936 billion yuan, which was not disclosed promptly. Multiple periodic reports contained material omissions and false records. Lawyer Liu Peng of Shanghai Huzi Law Firm stated that under the Securities Law and relevant judicial interpretations, investors who suffered losses due to the company's information disclosure violations may file civil compensation lawsuits in accordance with the law.
Where to begin with claims
Based on the penalty decision, investors eligible to join the claim process are those who purchased the shares between April 29, 2022, and August 26, 2025, and either sold them after August 27, 2025, or continue to hold them while incurring losses. According to the "Administrative Penalty Decision," from November 2021 to August 2025, funds from Hiking and its subsidiaries were transferred through intermediaries to the indirect controlling shareholder, Hiking Group Company, and its related parties, constituting related-party non-operating fund occupation.
Why the penalty was imposed
The non-operating fund occupation matters should have been disclosed in a timely manner as required, but the company failed to fulfill its information disclosure obligations. The occupancy was not disclosed in the 2021 annual report, 2022 semi-annual report, 2022 annual report, 2023 semi-annual report, 2023 annual report, and 2024 semi-annual report, rendering these periodic reports materially misleading. Investor compensation claims arising from the information disclosure violations are already underway, with the team of lawyer Liu Peng from Shanghai Huzi Law Firm having submitted case filings sequentially. The claim collection remains open, and those meeting the eligibility criteria can register to participate.
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