Core Viewpoint - The Hong Kong Stock Exchange (HKEX) has criticized and condemned a past violation involving financial "blood transfusions" between Xingyue Kanglv (formerly known as Aoyuan Health) and China Aoyuan, along with disciplinary actions against 15 directors of both companies [1][2]. Group 1: Disciplinary Actions - Xingyue Kanglv and its subsidiary, referred to as "Xingyue Group," provided financial assistance to China Aoyuan and its subsidiaries, violating the Listing Rules [1]. - The disciplinary actions include reprimands for Xingyue Kanglv and its former chairman, CEO, and non-executive director, as well as for China Aoyuan's former vice chairman and CEO [1][2]. - A total of 33 billion RMB was transferred from Xingyue Group to Aoyuan Group through 147 transactions between January 1, 2021, and March 31, 2022, primarily as short-term loans [1]. Group 2: Key Individuals Involved - Guo Zining is identified as the main architect behind the fund transfers, prioritizing the interests of China Aoyuan over those of Xingyue Kanglv, which led to significant liquidity pressure on Xingyue Kanglv [2]. - Chen Zhibin, the former CFO of China Aoyuan, facilitated the fund transfers and approved 118 out of the 147 transactions, failing to manage conflicts of interest [2]. - Zheng Wei, a former executive director of Xingyue Kanglv, approved 122 transactions without exercising independent judgment or seeking board approval [2]. Group 3: Consequences and Investigations - Following the revelation of the fund transfers, both companies were suspended from trading on April 1, 2022, and established independent committees to investigate the matter [3]. - The investigation revealed significant deficiencies in internal controls regarding related party transactions and conflict management [3]. - Despite attempts to alleviate China Aoyuan's debt issues, the financial strain severely impacted Xingyue Kanglv, which reported a 13% decline in revenue and over 41% drop in core net profit in its mid-2025 report [3].
港交所公开谴责，中国奥园及关联公司15名高层违规