Xiamen Jihong Clarifies Compliance Breach on UAE-Linked Related Party Deals

Xiamen Jihong Co., Ltd. Class H ( (HK:2603) ) has provided an update.

Xiamen Jihong has clarified supplemental details on related party transactions arising from its outbound investment to build a packaging production base and trade platform in the UAE with partner Venus Trading FZCO. After regulatory guidance, the company shifted from contributing equipment in kind to supplying packaging machinery, ancillary products and raw materials via agency procurement to project company AJT Printing and Packing FZ-LLC.

These agency procurement arrangements totaled RMB156 million in 2025, with Jihong recognizing about RMB9.80 million in export tax rebates at the consolidated level. Regulators later determined that the related party transaction amount should be calculated on the full RMB156 million, not the net rebate amount, implying that Jihong failed to meet timely disclosure and shareholder approval requirements under Shenzhen Stock Exchange and CSRC rules, highlighting governance and compliance risks for investors.