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.
Shandong Hiking International Co Ltd Class ACompany faces proposed penalty for undisclosed related-party fund occupancy and false records.