Fu Shou Yuan International Group Limited released a quarterly update detailing progress toward meeting Hong Kong Stock Exchange resumption requirements, the findings of an independent forensic investigation, and the status of its suspended shares.

Key takeaways

1. Forensic investigation completed • Independent consultant Ernst & Young (China) Advisory Limited reviewed transactions from 2014 – 2025 and identified 69 questionable transactions totaling RMB23.41 million (adjusted to RMB22.77 million after eliminating double counting). • Largest categories involved cash withdrawals lacking documentation (RMB8.02 million), prepaid “OK Cards” without distribution records (RMB2.89 million) and payments to external companies with doubtful commercial substance (RMB10.05 million). • Direct fund flows traceable to the former CEO—removed from management and the board—amount to RMB8.27 million. • Procedural limitations include non-cooperation by the former CEO and loss of certain subsidiary vouchers (2014-2017), but the board and the Special Investigation Committee believe these do not materially affect the principal findings. • Initial remedial actions: replacement of finance personnel involved, issuance of a revised treasury policy, and mandatory training on fund management.

2. Outstanding financial reporting • FY2025 audited results, FY2025 annual report and sustainability report, and 1H2026 interim results and report remain unfinished. • Completion depends on Stock Exchange enquiries into the investigation report and on the outcome of an independent internal control review; no publication dates have been set. • The annual general meeting will be further postponed until the 2025 statements are released.

3. Internal control overhaul • The Audit and Compliance Committees are short-listing an independent consultant to assess and rectify control deficiencies; appointment will be announced separately. • The review will focus on financial reporting, approval processes for notifiable and connected transactions, and disclosure controls.

4. Business operations intact • Despite the trading suspension since 20 March 2026, cemetery and funeral services continue without material interruption. • Management reports ongoing service upgrades, ecological burial promotion and digitalisation efforts, supporting compliance with Listing Rule 13.24 on sufficient operations and assets.

5. Trading status • Shares remain suspended; the company will issue further announcements on material developments and the timetable for resumption once the above milestones are met.

Investors are advised to exercise caution while the suspension remains in place and key financial information is outstanding.