Hong Kong-listed ARRAIL GROUP (06639.HK) announced on Monday (December 1) that its board and audit committee received a letter dated November 24, 2025, from its auditor, PwC. The letter highlighted an issue requiring further investigation during the auditor's review of the group's unaudited condensed interim financial results for the six months ended September 30, 2025 (2025 interim results).

The matter relates to a loan agreement between the company and Beier Holdings Limited, a British Virgin Islands-registered company wholly owned by Mr. Zou Qifang, the founder, chairman, director, and CEO of ARRAIL GROUP. Under the agreement, the company provided Beier Holdings Limited with a loan of $11 million, with a 42-month term starting September 30, 2022.

As of June 27, 2025, Beier Holdings Limited had repaid $3.5 million in two installments. Additionally, on July 1, 2025, it repaid RMB 15 million, including $1.58 million in interest and $510,000 in principal.

During the interim review, the auditor noted several payments made around the same period. PwC stated it needed more time to understand the background and rationale behind these transactions. Given the timing and amounts involved, the auditor deemed additional procedures necessary to complete the 2025 interim review in accordance with professional standards. PwC recommended forming an independent investigation committee, which the audit committee has approved.

The company will provide updates on the investigation in due course.

Under Listing Rule 13.49(6), ARRAIL GROUP was required to publish its 2025 interim results by November 30, 2025. However, due to: (i) the audit committee's ongoing review of the interim results and determination of the scope for independent investigation; (ii) the potential impact of additional procedures and investigation findings on the auditor's final assessment, the board concluded that releasing unaudited data prematurely would compromise accuracy and completeness.

The company will issue further announcements regarding the preparation and release of the 2025 interim results as soon as practicable.

Referencing its November 18, 2025, announcement about a board meeting originally scheduled for November 28 to approve the interim results and consider an interim dividend (if any), the company has postponed the meeting pending resolution of this matter.

Per Listing Rule 13.50, the Hong Kong Stock Exchange typically suspends trading of an issuer's securities if financial disclosures are delayed. ARRAIL GROUP's shares were suspended from trading starting December 1, 2025, until the interim results are published.

ARRAIL GROUP (06639.HK) listed on March 22, 2025, raising HK$680 million in its IPO. At the suspension price of HK$1.83 per share, the stock had fallen 87.48% from its IPO price of HK$14.62, with a current market capitalization of approximately HK$1.029 billion.