---
title: "Xiamen Jihong Clarifies Compliance Breach on UAE-Linked Related Party Deals"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/293482129.md"
description: "Xiamen Jihong Co., Ltd. (HK:2603) clarified compliance breaches regarding UAE-linked related party transactions. Regulators determined that RMB156 million in agency procurement should be fully counted, not just the net rebate amount. This error led to failures in timely disclosure and shareholder approval under Shenzhen Stock Exchange and CSRC rules, highlighting governance risks."
datetime: "2026-07-22T13:37:35.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/293482129.md)
  - [en](https://longbridge.com/en/news/293482129.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/293482129.md)
---

# 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.

**More about Xiamen Jihong Co., Ltd. Class H**

Xiamen Jihong Co., Ltd. Class H is a China-incorporated joint stock company listed in Hong Kong, operating in the packaging manufacturing sector. The company is expanding internationally by investing in a packaging production base and trade platform in the United Arab Emirates, targeting export-oriented growth through overseas joint ventures.

**Average Trading Volume:** 2,298,650

**Technical Sentiment Signal:** Strong Sell

**Current Market Cap:** HK$7.99B

### Related Stocks

- [02603.HK](https://longbridge.com/en/quote/02603.HK.md)
- [002803.CN](https://longbridge.com/en/quote/002803.CN.md)

## Related News & Research

- [Xiamen Jihong completes discounted placing of new H shares in Hong Kong](https://longbridge.com/en/news/293229727.md)
- [Xiamen Jihong Shareholders Back Governance Changes on Related Party Deals](https://longbridge.com/en/news/292653606.md)
- [Xiamen Jihong Launches HK$114.7 Million H-Share Placement Under General Mandate](https://longbridge.com/en/news/292821729.md)
- [Xiamen Jihong Faces Planned SZSE Public Censure Over Disclosure Lapses but Keeps Key Directors](https://longbridge.com/en/news/290712843.md)
- [Xiamen Jihong Calls June EGM to Raise Guarantee Limits for Subsidiaries](https://longbridge.com/en/news/285962328.md)