HIKING(SH:600735) Zheng Quan Zhi Xing·2025-06-20 10:45Core Viewpoint - The company, Shandong Xinhua Jin International Co., Ltd., has received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, specifically addressing the issue of non-operating fund occupation and internal control deficiencies [1]. Group 1: Non-operating Fund Occupation - In 2024, the total amount of non-operating fund occupation was 1,582.145 million yuan, with interest amounting to 11.5069 million yuan, and a year-end balance of 16.6369 million yuan, which accounted for 1.38% of the latest audited net assets [1]. - For the period from January to April 2025, the non-operating fund occupation amounted to 385.4879 million yuan, with interest of 3.7526 million yuan, and all occupied funds and interest have been repaid by the end of the period [1][5]. - The company’s financial report for 2024 received a standard unqualified audit opinion, but the internal control audit opinion included an emphasis on the aforementioned fund occupation and deficiencies in decision-making and information disclosure processes [1][5]. Group 2: Specific Situations of Fund Occupation - The company provided detailed information on the specific situations of fund occupation, including the flow of funds, responsible parties, and decision-making processes [2][5]. - A table was presented detailing the amounts and parties involved in the fund occupation, with significant amounts flowing through various accounts and entities, indicating a complex network of transactions [3][4]. - The company acknowledged that the non-operating fund occupation did not strictly follow the established approval processes, with the chairman being identified as responsible for the related issues [5]. Group 3: Internal Control and Fund Management - The company has established a comprehensive internal control system regarding fund management, which includes clear approval processes for external payments that require the approval of the financial director, president, and chairman [5]. - The company has conducted a thorough self-examination to enhance the effectiveness of its internal controls, particularly concerning fund payments, and has implemented stricter approval procedures to prevent future occurrences of non-operating fund occupation [5]. - The company disclosed its cash and bank deposit situation as of the end of 2024, with a total cash balance of 61,964.09 million yuan and various accounts with different interest rates, indicating a diversified fund management strategy [6].