China High Speed Transmission Equipment Group Co., Ltd. (the Group) has initiated a fresh independent investigation and announced an expanded internal control review after earlier findings were deemed too narrow to address all governance gaps.
Key developments:
1. Appointment of New Independent Investigator • Grant Thornton Zhitong Certified Public Accountants LLP began a Further Investigation in June 2026, expected to last five-to-six months. • Scope focuses on: – Tracing cash flows, supporting documents and commercial substance of the “Relevant Transactions.” – Identifying key participants, potential conflicts of interest and internal-control weaknesses. – Determining causes of bad debts, assessing recovery efforts and proposing collection plans. • Management will seek cooperation from Fullshare personnel and all counterparties to provide complete information.
2. Comprehensive Internal Control Review by Mid-August 2026 • An external consultant will conduct a Group-wide review (Further IC Review) covering policies from project initiation to treasury management and compliance with Chapters 13, 14 and 14A of the Hong Kong Listing Rules. • Specific focus areas include notifiable and connected transactions, financial assistance, conflict-of-interest management, enterprise risk management and adherence to Corporate Governance Code provisions.
3. Immediate Control Enhancements Implemented • Connected-person lists are now circulated quarterly. • A strengthened connected-transaction management system is in place. • A formal policy on all forms of financial assistance has been promulgated and is monitored regularly. • Hong Kong counsel will deliver director and senior-management training on connected-party rules in August 2026.
The Board stated that these measures aim to rectify past non-compliance incidents, bolster corporate governance and safeguard shareholder interests. Further announcements will be issued as the investigations and control reviews progress.
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