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.
Henan Rebecca Hair Products Co LtdControlling shareholder misappropriated funds, violating regulations and prompting exchange inquiry.