Henan Rebecca Hair Products Co Ltd

ST Rebecca released its 2026 interim report. Total operating revenue was 644 million yuan, and net profit attributable to the parent company was 4.4972 million yuan, down 52.03% from the same period last year. Net cash inflow from operating activities was 124 million yuan. The asset-liability ratio was 40.54%, gross margin was 40.05%, ROE was 0.18%, and diluted earnings per share was 0.00 yuan. The company had 61,900 shareholders, and the top ten shareholders held 36.10% of the shares.

The China Securities Regulatory Commission recently released its accounting supervision report on annual financial reports of listed companies for 2025. It shows that 214 listed companies that disclosed annual reports on time received non-standard audit opinions, including 87 with qualified opinions and 18 with disclaimers of opinion. According to Wind data, as of August 19, more than 160 A-share listed companies had been placed under ST or asterisk ST risk warnings this year, with over 140 added since the second quarter. They include former semiconductor leader with a market value of 100 billion yuan, now known as ST Wingtech, and the veteran ChiNext company ST Huayi. The triggers were mainly financial underperformance or loss of financial credibility. For example, ST Zhongshe was flagged because total profit, net profit, and net profit excluding non-recurring items were all negative, while revenue excluding non-recurring items failed to reach the 300 million yuan threshold. ST Weiling simultaneously triggered negative net assets at period end and a disclaimer of opinion on internal control auditing. Dozens of companies such as ST Jiaoang, ST Rebecca, and ST Guangtang were placed under risk warnings for financial fraud or distorted financial data. Regulatory compliance risks were also prominent. ST Xilinmen was flagged because the controlling shareholder's non-operating fund occupation and outstanding irregular guarantees each exceeded 5 percent of net assets, and internal control received an adverse opinion. ST Jinhongshun received an additional risk warning due to an adverse internal control opinion and non-operating fund occupation of 107 million yuan by actual controller Liu Xu. Regulators are accelerating the establishment of a normalized delisting framework. In April 2026, the Shanghai, Shenzhen, and Beijing stock exchanges revised trading rules, adjusting the daily price limit for risk-warning stocks on the Shanghai and Shenzhen main boards from 5 percent to 10 percent, effective July 6. The four major mandatory delisting standards covering financial, trading, regulatory compliance, and major illegal conduct categories have been comprehensively upgraded.

Rebecca has received an advance notice of administrative penalty from the Henan Securities Regulatory Bureau. Due to violations including failure to disclose related-party transactions and non-operating fund occupation, as well as inflating monetary funds, the company was given a warning and fined 6.5 million yuan. The controlling shareholder, Henan Rebecca Holdings, was fined 6 million yuan, and relevant responsible persons were also fined varying amounts. Trading in the company's shares will be suspended for one day on July 31, and will resume on August 3 with other risk warnings implemented. The A-share abbreviation will change from Rebecca to ST Rebecca, with a daily price limit of 10 percent.

Rebecca Hair Products has disclosed its reply to the Shanghai Stock Exchange’s regulatory inquiry letter regarding its 2025 annual report, detailing the issue of non-operational fund misappropriation by its controlling shareholder. The company admitted that starting from 2021, it circulated loans through four trading companies with no actual business operations. From 2022 to the first half of 2025, part of the funds were channeled to the controlling shareholder for loan repayment and turnover. The four companies were retroactively identified as implicit related parties. The misappropriated funds were fully recovered on June 26, 2025, with the source being loan funds. The company stated that its original fund approval system was bypassed by the financing department’s loan circulation operations, and the path dependence of the handling personnel led to a recurrence of misappropriation in the first quarter of 2025 after self-inspection and rectification in 2024, rendering internal control execution a mere formality. Currently, the company has revised its fund management and related-party transaction systems, isolated the capital flows between the listed company and the controlling shareholder, held relevant personnel accountable, introduced external institutions, and made internal audits routine. No further fund misappropriation occurred in the second half of 2025.