Ginwa Enterprise Group Inc

ST Jinhua Chairman Xing Yajiang has been fined a total of 9 million yuan by the Shaanxi Regulatory Bureau of the China Securities Regulatory Commission for failing to disclose changes in shareholding as required by law and causing false records in periodic reports. After the market close on September 4, the company announced that Xing Yajiang received the administrative penalty decision on September 3, in which the regulatory bureau ordered him to make corrections, issued a warning, and imposed a fine. The investigation showed that Xing Yajiang, through a company under his actual control, entrusted Xinyu Xingpeng to participate in a judicial auction, held shares on his behalf, and reduced a stake equivalent to 2.25 percent of the company's total share capital, while failing to fulfill information disclosure obligations as required. This caused false records in the company's 2022 semi-annual report, 2022 annual report, 2023 semi-annual report, and 2023 annual report. Previously, Xing Yajiang was fined 3.5 million yuan in December 2025 for failing to report in a timely manner that he had been released on bail pending trial. On the same day, the company also announced plans to reduce its holdings of repurchased shares by no more than approximately 7.47 million shares, accounting for 2 percent of the total share capital. In the first half of 2026, ST Jinhua reported operating revenue of 246 million yuan, up 1.81 percent year on year, and net profit after deducting non-recurring items of approximately 9.19 million yuan, up 35.29 percent year on year.

ST Jinhua released its 2026 interim report. First-half net profit attributable to the parent company was 790,000 yuan, down 87.25% year on year. Operating revenue was 246 million yuan, up 1.8% year on year. Net profit attributable to the parent after deducting non-recurring items was 9.19 million yuan, up 35.3% year on year. Net operating cash flow was negative 64.38 million yuan. Second-quarter operating revenue was 119 million yuan, down 11.4% year on year, with a net loss attributable to the parent of 3.12 million yuan. The company's main business remains research, development, production and sales of pharmaceuticals, with a product line covering chemical drugs, proprietary Chinese medicines, active pharmaceutical ingredients and health products.

ST Jin Hua disclosed that its chairman, Xing Yajiang, has been ordered by the Shaanxi Securities Regulatory Bureau to make corrections, given a warning, and is proposed to be fined a total of 9 million yuan for suspected illegal information disclosure. The 2026 semi-annual report released the same day shows that net profit attributable to the parent company plunged 87.25% year on year to just 790,000 yuan. The Shaanxi bureau found that Xing Yajiang, through Juchanghe Trading, a company he actually controls, arranged for Xinyu Xingpeng to participate in the judicial auction of Jin Hua shares and to hold shares on its behalf while reducing its stake by 2.25%, and that he failed to fulfil the statutory notification and announcement obligation when the combined shareholding change with concert party Xing Boyue exceeded 1%, causing false records in shareholder information in the company's 2022 and 2023 periodic reports. A fine of 3.5 million yuan is proposed for failing to notify and announce the shareholding change, and a fine of 5.5 million yuan is proposed for causing false records in the periodic reports. ST Jin Hua said the penalty involves only the chairman personally, will not have a material impact on the company's daily production and operations, and does not trigger mandatory delisting for major violations. In April this year, Jin Hua shares had its stock abbreviation changed to ST Jin Hua after ShineWing Certified Public Accountants issued an adverse opinion on the company's internal control over financial reporting for 2025. Since being labelled on 30 April, the company's stock has hit four consecutive daily limit-downs, and the share price has continued to fall since then, closing at 4.79 yuan on 21 August, down about 36% for the year.