On 9th June 2026,The Stock Exchange of Hong Kong Limited issued severe public censures and disciplinary sanctions against the delisted entity Zhejiang Yongan Rongtong Holdings Co., Ltd. and its six former directors. This regulatory action stems from an unauthorized capital transfer at year-end 2024, wherein the company illicitly transferred nearly its entire cash balance totaling RMB166.7 million to its controlling shareholder with low sense of awareness and delayed remedial action.Consequently, former Chairman and CEO Mr. Zhan Fahui was hit with a director unsuitability statement for breaching his fiduciary duties by unilaterally executing the transfer without board authorization or requisite internal controls.
Furthermore, the Exchange also listed out the severe supervisory deficiencies against other key director executives in this incident.Specifically, the remaining board directors failed to detect the massive cash drain in a timely manner and subsequently delayed crucial remedial actions. These delays included failing to promptly announce the connected transactions, restrict Mr. Zhan’s executive authority, or recover the misappropriated corporate assets. Ultimately, this enforcement action highlights systemic failures in internal governance, connected transaction monitoring, and financial oversight, reinforcing the Exchange’s commitment to holding directors personally accountable for balance sheet negligence and the destruction of shareholder value.
Sources:https://www.hkex.com.hk/News/Regulatory-Announcements/2026/260609news?sc_lang=en