On 9 July 2026, The Stock Exchange of Hong Kong Limited publicly censured Ever Reach Group (Holdings) Company Limited (Stock Code: 3616), together with four of its directors and five senior management members. All involved directors and senior staff are ordered to complete 21 hours of compliance training; for former executive director Ms Qi Chunfeng, completion of such training will be a prerequisite for any future appointment as a director of any company listed or to be listed on the Exchange. To ease liquidity strains in the aftermath of the COVID-19 pandemic, the company conducted circular fund flows by making prepayments to suppliers without sufficient supporting documents and misappropriating bank loans earmarked for specific projects to fund unrelated construction works, which breached regulatory requirements and the firm’s internal control framework. Although all prepayments were fully recovered eventually, unresolved audit issues emerged, delaying the completion of the FY2023 audit within the statutory timeframe and triggering a trading suspension of the company’s shares. The Exchange found that the relevant directors were aware of the non-compliant fund arrangement yet approved and allowed its implementation, failing to discharge their director duties, while the implicated senior management carried out the unlawful fund reallocation. All parties admitted their breaches of the Listing Rules at an early stage and accepted the sanctions imposed. The HKEX emphasises that directors and senior management of listed companies must not prioritise commercial interests over compliance and internal controls even amid operational pressures, and shall establish robust corporate governance; otherwise, they will face corresponding regulatory liabilities and occupational risks.
Sources: https://www.hkex.com.hk/News/Regulatory-Announcements/2026/260709news?sc_lang=en