According to the announcement from Kong Shum Smart Management Group (Holdings) Limited (Stock Code: 8181), a series of renovation and equipment transactions were conducted with META Design Group Limited from 16 October 2024 to 8 February 2025. These transactions, amounting to approximately HK$24.23 million in total, enabled the development of an intelligent monitoring system center (IMS Centre) for the property management business.

The announcement indicates that the aggregated transactions exceeded specific percentage ratios under Chapter 19 of the GEM Listing Rules, classifying them as discloseable and major transactions. Consequently, approval from shareholders was required. As no shareholder needed to abstain from voting and the necessary written consent held over 50% of the voting rights, a general meeting was not convened.

The company acknowledged that internal oversight caused delays in fulfilling notifiable transaction requirements at the time of certain agreements. An internal control review, carried out by an independent consultant, identified multiple areas needing improvement, such as the lack of documented policies for size testing, connected party reporting, petty cash management, and training on GEM Listing Rules compliance. Management addressed each deficiency with measures including clearer authorization protocols, enhanced training, and the formal assignment of designated officers to monitor potential notifiable transactions.

Following a follow-up review, the independent consultant confirmed that all remediation efforts have been implemented, including revised procedures for notifiable and connected transactions, updated approval chains, and stricter adherence to financial reporting requirements. The Board concluded that the improved internal control system should effectively prevent similar compliance issues in the future and will continue to monitor procedures for sustained effectiveness.