Happy Hall: The holding company's 100 million yuan funds were illegally transferred, and the 9 billion yuan account was protectively frozen.
Announcement from Xilinmen: Recently, the company discovered that the funds in the bank account of its subsidiary, Xitu Technology Co., Ltd., were illegally transferred, with a total of 100 million yuan being transferred. After investigation by the company, it was found that certain individuals were suspected of using their positions to embezzle company funds. In order to further prevent financial security risks and safeguard the company's funds, the company applied for a criminal investigation with the public security authorities on March 26, 2026, and implemented a protective freeze on the bank accounts of three subsidiaries totaling 900 million yuan. The total funds involved amount to about 1 billion yuan, accounting for 26.54% of the company's net assets and 42.69% of its cash funds as of the most recent audited period. The company stated that this incident may have a certain impact on the normal use of funds by the subsidiary in the short term, but considering the company's cash flow situation, it will not have a significant adverse impact on the overall production and operation activities of the company for the time being. The company is currently fully cooperating with the public security authorities in investigating and verifying the relevant matters. While ensuring the safety of the accounts, it will work to unfreeze the accounts and actively pursue the recovery of illegally transferred funds, striving to eliminate any adverse effects as soon as possible and effectively protect the legitimate rights and interests of the company and all shareholders.
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