Core Viewpoint - The Hong Kong Stock Exchange has issued a disciplinary action statement against Fuhong Hanlin, a significant stock in the market, highlighting issues related to the company's use of IPO proceeds and governance failures by its former CEO, Liu Shigao [1][2][8]. Group 1: Company Background - Fuhong Hanlin, listed on September 25, 2019, raised a net amount of HKD 31.47 billion (approximately USD 4.03 billion) during its IPO [5]. - The company experienced a remarkable stock price increase from HKD 15.20 per share in late January 2023 to a peak of HKD 85.95 per share, marking a maximum increase of 465.4% [3]. Group 2: Disciplinary Actions - The Hong Kong Stock Exchange condemned Fuhong Hanlin and criticized Liu Shigao, requiring him to complete 26 hours of training on regulatory and legal issues before being eligible for any directorship in listed companies [2]. Group 3: Investment Management Agreement - An investment management agreement was signed on the company's first trading day, appointing a financial institution to manage USD 117 million of IPO proceeds, which was not aligned with the stated use of funds in the IPO prospectus [6][8]. - Liu Shigao approved the payment of management fees amounting to USD 3.5 million for the first two years without proper review of the investment management agreement [7]. Group 4: Financial Implications - The investment management agreement's financial implications were significant, and the company failed to disclose this agreement in its annual reports for 2019 and 2020 [8]. - Fuhong Hanlin recovered a total of USD 30.64 million from the financial institution between 2020 and 2022, with an additional USD 20 million recovered in 2023 [9]. - As of June 30, 2025, the company reported an outstanding balance of USD 66.36 million in the investment account, with a provision for credit losses amounting to approximately RMB 475 million [10].
港股5倍大牛股复宏汉霖遭港交所谴责！挪用IPO募资，“血亏”超4亿元