Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited disclaim responsibility for the content of the original announcement, as well as any liability for losses arising from reliance on its content. According to the announcement, the U.S. Department of the Treasury’s Office of Foreign Assets Control designated a key executive of FSM Holdings Limited (1721) under sanctions on 14 October 2025 for alleged involvement with the Prince Group Transnational Criminal Organization in online scams and money laundering. The individual in question, Mr. Li, was serving as an executive director at the time. Following immediate internal assessments and professional consultations, it was announced that Mr. Li resigned from his executive positions on 21 October 2025.

Mr. Li’s resignation includes his former roles as chairman of the board and chairman of the nomination committee. The announcement specifies that Mr. Li has confirmed no outstanding claims against the company, no disagreement with the board, and no issues requiring further attention for shareholders. The company itself is not a sanctioned entity, has no involvement with the Prince Group Transnational Criminal Organization, and has stated that neither its operations nor its financial position are materially affected by the sanctions.

The announcement further notes the company’s non-compliance with Rule 3.27A of the Listing Rules because the nomination committee is currently without a duly qualified chair. It is stated that FSM Holdings Limited (1721) plans to identify a suitable candidate for the positions of chairman of the board and nomination committee chair as soon as practicable, with additional updates to follow in due course.