Core Viewpoint - The announcement from the company highlights serious allegations against China High-Speed Transmission Equipment Group Co., Ltd. regarding fraudulent activities and misappropriation of funds, amounting to approximately RMB 6.64 billion, involving key executives and board members [1][2][4]. Group 1: Allegations and Legal Actions - China High-Speed and its subsidiaries have gathered sufficient evidence indicating involvement in fraudulent activities by a group of individuals, including former and current executives, leading to a lawsuit filed in the Hong Kong High Court [2][3]. - The lawsuit targets 30 defendants, including the company's executives and its wholly-owned subsidiary, Five Seasons, with claims of misconduct, although the details of the claims are vague [2][3]. - The company believes the claims are malicious and baseless, asserting that the connection between the defendants and the alleged misappropriation of funds is unfounded [2][3]. Group 2: Financial Oversight and Internal Controls - The board expresses concerns regarding the oversight and internal control measures related to the significant funds involved, questioning whether the China High-Speed board fulfilled its responsibilities in managing large transactions [4][5]. - The board is particularly worried about the implications of the RMB 6.64 billion in receivables, which represents approximately 47.7% of China High-Speed's net assets as of December 31, 2023 [4]. - There are indications of mismanagement within the China High-Speed board, especially regarding the approval of financial statements and the oversight of financial operations [5][6]. Group 3: Corporate Governance Issues - The company notes that recent amendments to the rules governing Nanjing High-Speed have resulted in a loss of absolute control over its board, raising concerns about the future integration of Nanjing High-Speed's financial performance into the company's consolidated financial statements [6][7]. - The board has not received adequate explanations from China High-Speed regarding the rationale behind the renewal of a significant service contract with Anwei Transmission Technology Co., Ltd., which involves an annual fixed maintenance fee of RMB 175 million [7][8]. - The company has applied to the stock exchange for the resumption of trading of its shares, indicating a move towards stabilizing its operations amidst the ongoing legal and governance challenges [8].
丰盛控股(00607)收到传讯令状 4月2日复牌