Core Viewpoint - The article discusses the disciplinary actions taken by the Hong Kong Stock Exchange (HKEX) against Fuhong Hanlin and its former CEO Liu Shigao for failing to fulfill due diligence obligations regarding an investment management agreement that misallocated IPO proceeds [2][8]. Group 1: Disciplinary Actions and Violations - Fuhong Hanlin received a reprimand from HKEX, and Liu Shigao was required to undergo 26 hours of compliance training due to his failure to review a significant investment management agreement [2][8]. - The investment management agreement allowed 29% of the IPO proceeds, amounting to $117 million (approximately 840 million RMB), to be used for investments, which was not disclosed until 2022 [3][7]. - Liu Shigao did not participate in the agreement's establishment process and failed to present it to the board for review, violating corporate governance standards [8][9]. Group 2: Financial Details and Recovery Efforts - As of the end of 2024, Fuhong Hanlin still had $66.36 million (approximately 470 million RMB) in unrecovered investment funds [4][11]. - The company had initially raised a net amount of HKD 31.47 billion (approximately $4.03 billion) during its IPO, with the funds intended for clinical trials and operational expenses [6][7]. - Fuhong Hanlin has taken legal action to recover the outstanding investment amount, which has been recorded as accounts receivable in their financial statements [14]. Group 3: Investment Management Agreement and Misuse of Funds - The investment management agreement was established with a firm that used the funds to purchase bonds and commercial papers from private entities, raising concerns about potential conflicts of interest [3][13]. - The HKEX noted that the investment management project did not align with the intended use of IPO proceeds as outlined in Fuhong Hanlin's prospectus [8]. - An independent investigation revealed that the investment management firm had previously sued Fuhong Hanlin for breach of contract, indicating ongoing disputes over the management of the funds [12][13].
复宏汉霖上亿美元理财暴雷 创始人被罚“补课”26小时