Shandong Hiking International Co Ltd Class A

ST Xinhua Jin released its 2026 interim report, with first-half net profit attributable to the parent at 5.92 million yuan, down 54% year on year. Operating revenue was 605 million yuan, down 9.5% year on year. Net profit attributable to the parent after deducting non-recurring items was a loss of 2.99 million yuan, down 156.4% year on year. Net operating cash flow was 37.42 million yuan, down 51.6% year on year. In the second quarter, operating revenue was 249 million yuan, down 15.9% year on year, and net profit attributable to the parent was 2.18 million yuan, down 66.8% year on year, but net profit after deducting non-recurring items turned from loss to profit at 8.03 million yuan. The company's business is mainly centred on new trade and new materials. Its hair products export business achieved first-half operating revenue of 446 million yuan, up 7.69% year on year. Its graphite new materials business and elderly care and health business are also advancing steadily.

ST Xinhua Brocade announced that because the management of its controlling subsidiary Shanghai Lizhi Industrial Co., Ltd. did not cooperate with the preparation of the 2026 semi-annual report, the company was unable to obtain complete financial information for the subsidiary, and has decided that Shanghai Lizhi will no longer be included in the consolidated financial statements starting from April 1, 2026. The company said that its other business segments are relatively independent from Shanghai Lizhi's business, and this matter will not have a material impact on the operation and development of its other businesses.

ST Xinhua Jin faces a proposed penalty of 4.55 million yuan from the Qingdao Bureau of the China Securities Regulatory Commission for failing to timely disclose a cumulative 3.936 billion yuan in non-operating related-party fund occupancy, along with material omissions and false records in periodic reports. The company is ordered to correct the issues and issued a warning. Actual controller Zhang Jianhua faces a proposed fine of 6.1 million yuan, while chairman Zhang Hang and several other executives face warnings and corresponding fines. Investigations found that from November 2021 to August 2025, funds of the company and its subsidiaries were transferred through intermediaries to Xinhua Jin Group and its related parties, constituting non-operating fund occupancy. The annual amounts were 115 million yuan, 561 million yuan, 454 million yuan, 1.582 billion yuan, and 1.224 billion yuan, respectively. The 2024 amount accounted for 104.35% of the company's latest audited net assets. The company also artificially adjusted its 2023 semi-annual balance sheet, increasing cash by 190 million yuan and reducing other receivables by 190 million yuan, which constituted false records. The occupied funds were fully repaid in cash as of April 20, 2026. The company assesses that this penalty does not trigger mandatory delisting for major violations, and its production and operations are currently normal.