Chinese Online announced on the evening of September 30 its largest refinancing plan since listing, planning to issue A-shares to no more than 35 specific investors, with total proceeds not exceeding 2.833 billion yuan, of which 864 million yuan will be used for original literature copyright procurement, the largest single use of the funds. Just two days after the plan was disclosed, the Shenzhen Stock Exchange issued an inquiry letter on October 2, raising questions on five aspects: the use of proceeds, the investment projects, the impact on the company's key financial indicators, the termination of the previous refinancing, and the relationship with its Hong Kong IPO. The company is required to reply in writing and disclose the response before October 8. The inquiry letter pointed out that as of the end of June 2026, Chinese Online had net assets of 263 million yuan, cash and cash equivalents of 277 million yuan, and interest-bearing debt of 428 million yuan. From January to June 2026, net operating cash flow was 127 million yuan, and net profit before and after deducting non-recurring items was negative 43 million yuan and negative 48 million yuan respectively. The Shenzhen Stock Exchange required the company to explain the reasonableness of the financing amount in light of the fact that the fundraising scale is more than 10 times its net assets and the above financial data. The company has not yet disclosed its response to the inquiry letter. In the secondary market, Chinese Online's share price hit an intraday high of 43.80 yuan per share on February 11, 2026, a new high in nearly 10 years, and closed at 23.37 yuan per share on September 30, down 46.63% from the year's high.
COL Digital Publishing Group Co LtdShenzhen Stock Exchange questions Chinese Online's 2.833 billion yuan private placement, which is over 10 times its net assets, raising financing and valuation concerns.
