Core Points - The Hong Kong Stock Exchange (HKEX) reprimanded Fuhong Hanlin (02696.HK) and its former CEO Liu Shigao for failing to fulfill due diligence obligations regarding a significant investment management agreement from 2019, which involved $117 million (approximately 840 million RMB) of IPO proceeds being misallocated [2][4][5] - As of the end of 2024, Fuhong Hanlin has $66.36 million (approximately 47 million RMB) in unrecovered investment funds [3] - Liu Shigao has been mandated to undergo 26 hours of compliance training to continue serving as a director of a company listed on the HKEX [2][6] Investment Management Agreement - The investment management agreement, signed by the CFO on the first day of the IPO, allowed the investment of $117 million through a third party, which was not disclosed to the public until 2023 [4][6] - HKEX stated that the investment did not align with the intended use of IPO proceeds as outlined in Fuhong Hanlin's prospectus, which was primarily for clinical trials and operational expenses [5][6] - The funds were fully utilized by the third party to subscribe to bonds and purchase promissory notes from private entities, raising concerns about potential conflicts of interest [11][12] Recovery Efforts - Fuhong Hanlin has been attempting to recover the investment since 2020, but as of 2024, a significant portion remains unrecovered [3][9] - The company has taken legal action to recover the outstanding investment amount, which has been classified as accounts receivable in their financial statements [13][14] - The independent investigation revealed that the company’s personnel genuinely aimed to achieve capital preservation through low-risk investments during the idle period of IPO funds [12][13] Corporate Governance - Liu Shigao's lack of involvement in the agreement's establishment and failure to ensure compliance with listing rules led to the reprimand from HKEX [6][7] - Fuhong Hanlin has experienced a high turnover of CFOs, with four changes since its IPO in 2019, indicating potential instability in financial oversight [13] - The company has acknowledged the need for improved governance and compliance practices following the reprimand [2][6]
复宏汉霖上亿美元理财暴雷 创始人被罚“补课”26小时