Allegro Culture (HKG:0550) disclosed findings from an independent forensic investigation that flagged a potentially unauthorized HK$2.8 million payment to Allied Charm, according to a Tuesday Hong Kong bourse filing.

The investigation, conducted by Frank Forensic and Corporate Recovery, also raised concerns over transactions involving Hopeful Top, KK Wecheck, and others, including missing records and internal control lapses.

The review covered activity from 2019 to 2023 and was prompted by audit issues, investor complaints, and litigation against former directors.

The review, covering 2019 to 2023, found no evidence that former chairman Chen Jiajun had misappropriated funds for certain alleged investments, though several transactions tied to entities under his influence could not be fully verified.

It has since launched legal action over multiple payments, including those involving former executive Tsang Hing Bun and related entities.

Allegro said its current auditor now considers the findings sufficient to proceed with delayed audits.

Trading in Allegro's shares, suspended since April 2024, remains halted.