On the evening of August 26, 2025, Shandong Hiking International Co.,Ltd. (hereinafter referred to as "Shandong Hiking" or "the Company") announced that it had received an "Administrative Regulatory Measures Decision" issued by the Qingdao Securities Regulatory Bureau and a "Regulatory Work Letter" from the Shanghai Stock Exchange.
According to the Administrative Regulatory Measures Decision, following investigation, Shandong Hiking International Co.,Ltd., Xinhuajin Group Co.,Ltd., and Zhang Jianhua were found to have violated regulations. The investigation revealed that Xinhuajin Group Co.,Ltd. (hereinafter referred to as "Xinhuajin Group"), which is controlled by Zhang Jianhua, the actual controller of Shandong Hiking International Co.,Ltd., had non-operationally occupied company funds.
According to the company's disclosed "2025 Semi-Annual Report," as of the disclosure date of the 2025 semi-annual report, the outstanding balance of non-operational fund occupation by Xinhuajin Group and its related parties totaled 406 million yuan.
The aforementioned conduct violated Articles 2, 3, and Item 2 of Article 5 of the "Listed Company Regulatory Guidelines No. 8 - Regulatory Requirements for Listed Company Fund Transactions and External Guarantees" (CSRC Announcement [2022] No. 26).
The company has been ordered to make corrections regarding the fund occupation issue. Investors who purchased shares between May 8, 2025, and August 26, 2025, and held positions during this period, regardless of whether they sold after August 27, 2025, may be eligible for compensation claims.
The fund misappropriation represents a significant regulatory violation that affects shareholder interests and corporate governance standards. The regulatory action underscores the authorities' continued efforts to strengthen oversight of listed companies and protect investor rights.
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