TOMO Holdings (HKG:6928) said it remains unable to verify the financial results of an acquired associate and is exploring civil action or a potential disposal of the investment, according to a Monday Hong Kong bourse filing.

Shares of the company were down nearly 4% in Tuesday's recent trade.

The company said it filed a bankruptcy petition in March against the vendor, Tsang Kin Yip, after he failed to produce documents supporting a profit guarantee related to Ocean Dragon, but later withdrew the petition in May after Tsang presented unaudited statements.

However, Tomo said it was only permitted to view the accounts physically and not the underlying records, rendering the statements unverifiable.

Tomo has not received any economic benefit from the associate since the acquisition, it said.

The group expects a qualification on the opening balances of its 2025 financial statements and is rolling out stricter internal controls in August to safeguard future investments.