Recently, Shandong Hiking International Co.,Ltd. has drawn market attention due to fund occupation issues involving its controlling shareholder.
According to an announcement on September 23, Shandong Hiking International released a "Risk Warning Notice Regarding Fund Occupation Rectification Progress and Possible Implementation of Other Risk Warning and Delisting Risk Warning," stating that the controlling shareholder has failed to return over 400 million yuan in occupied funds.
Fund Occupation Remains Unresolved After One Month - Delisting Risk Intensifies?
On the evening of August 26, Shandong Hiking International issued an announcement stating that the company received an "Administrative Supervisory Measures Decision" from the Qingdao Securities Regulatory Bureau, indicating that Shandong Hiking Group and its related parties had non-operating fund occupation with a remaining balance of 406 million yuan.
According to Article 9.8.1 and other relevant provisions of the "Shanghai Stock Exchange Stock Listing Rules" (revised in April 2025), if the company fails to recover the occupied funds within one month, the company's stock will be subject to other risk warnings. According to Article 9.4.1 and other relevant provisions of the "Shanghai Stock Exchange Stock Listing Rules" (revised in April 2025), if the company fails to recover the occupied funds within six months as required by the rectification order, the company's stock will be suspended. If rectification is not completed within two months after suspension, the company's stock will be subject to delisting risk warning. If rectification is still not completed within the subsequent two months, the company's stock trading will be terminated.
As of the disclosure date of this announcement, Shandong Hiking Group and its related parties have not yet returned the occupied funds, with a non-operating fund occupation balance of 406 million yuan.
Does the company actually face delisting risk in the future? What is the debt repayment capacity of the major shareholder?
Wind data shows that the company's shares are almost entirely pledged by the major shareholder. Notably, Wind data indicates that the reference price on the pledge date was 6.74 yuan, while the current company stock price is around 5.6 yuan.
Meanwhile, the major shareholder's shares have also encountered judicial freezing.
On September 5, Shandong Hiking International announced that the company shares held by controlling shareholder Shandong Lujin Import and Export Group Co., Ltd. were judicially frozen and marked. Lujin Group holds 185,532,352 shares of the company, accounting for 43.27% of the company's total share capital. This judicial freezing involves 612,352 shares and judicial marking involves 184,920,000 shares, totaling 100% of its holdings in the company, representing 43.27% of the company's total share capital.
Lujin Group and its parties acting in concert collectively hold 185,596,152 shares of the company, accounting for 43.28% of the company's total share capital. The judicially frozen and marked shares account for 99.97% of their total holdings in the company. The reason for the share freezing and marking is a loan contract dispute between Shandong Hengsheng Private Fund Management Co., Ltd. and Lujin Group, Shandong Hiking Group Co., Ltd., with the case debt amount and execution costs totaling 75 million yuan.
It should be noted that the company also disclosed relevant fund recovery measures in its announcement.
On May 7, 2025, Shandong Hiking Group, Shandong Lujin Import and Export Group Co., Ltd., and Shandong Jimo Rice Wine Factory Co., Ltd. signed an "Equity Transfer Agreement" with Tsingtao Brewery Co., Ltd. Tsingtao Brewery intends to acquire 100% equity in Shandong Jimo Rice Wine Factory Co., Ltd. from Shandong Hiking Group and Lujin Group, with the consideration being 665 million yuan plus profit and loss adjustments during the price adjustment period. The company stated it has signed a "Repayment Agreement" and "Pledge Guarantee Contract" with Shandong Hiking Group and Lujin Group, whereby Shandong Hiking Group and Lujin Group pledged their 665 million yuan accounts receivable from Tsingtao Brewery to the company. The accounts receivable pledge registration has been completed, giving the company priority repayment rights for these receivables.
CFO Refuses to Guarantee Half-Year Report Authenticity
From the regulatory penalties imposed on the company at the beginning of this year, it indirectly reflects concerns about its financial report quality.
On January 17, Shandong Hiking International released an announcement titled "Notice on Receiving Administrative Supervisory Measures Decision from China Securities Regulatory Commission Qingdao Regulatory Bureau," directly pointing to four major problems in its financial accounting.
First, irregular revenue recognition - while the company's revenue recognition policy is to recognize revenue when customers obtain control of relevant goods or services, subsidiary Qingdao Senhui Graphite Co., Ltd. ("Qingdao Senhui") had instances where revenue recognition timing was actually based on invoice issuance, failing to strictly execute the company's accounting policy for revenue recognition.
Second, irregular accounting for receivables - firstly, Qingdao Senhui performed derecognition for unmatured bank acceptance bills with lower credit ratings that were endorsed or discounted. Secondly, some of Qingdao Senhui's bank acceptance bill endorsement and transfer activities were not incurred during production and operation due to goods sales or service provision, and the related amounts should be accounted for as other receivables, but Qingdao Senhui recorded them as accounts receivable.
Third, irregular accounting voucher management - Qingdao Senhui's revenue recognition vouchers and cost carry-forward vouchers lacked complete original documents. After modifying electronic accounting vouchers, related paper accounting vouchers were not updated and printed in a timely manner, resulting in occasional inconsistencies between electronic chronological account voucher numbers and paper accounting vouchers.
Fourth, individual transactions not recorded - Qingdao Senhui transferred funds through suppliers, with amounts recovered on the same day or the next day. For these fund transfers, Qingdao Senhui did not record them in accounts.
In the first half of 2025, Shandong Hiking International achieved revenue of 669 million yuan, a decrease of 24.92% year-over-year; net profit attributable to shareholders was 13 million yuan, a decrease of 39.45% year-over-year. Notably, the company's CFO refused to guarantee the authenticity of the half-year report. According to the half-year report, CFO Cao Xu did not sign a written confirmation opinion guaranteeing the truthfulness, accuracy, and completeness of the half-year report.
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