Sterling Group Holdings Limited (the “Company”) presented key findings of an internal control review conducted by Pan-China Tax and Business Advisory Limited for the year ended 31 March 2025. The review examined human resources management, revenue and expenditure business cycles, monitoring of repayment of advances, and follow-up measures introduced in response to a previously issued specific internal control report.

According to the update, approximately HK$27.3 million was repaid ahead of schedule by Santai in April and May 2025, and no new advances to Santai, JPO, or third parties were identified during the review period, apart from transactions previously disclosed. No non-business payments were noted. The review found that certain policies in human resources, payroll management, revenue assessment of customers, and payment procedures required further enhancements, but these findings were not deemed material.

To address these points, the Company intends to optimize written policies and internal control procedures, ensure segregation of duties in accounting functions, document the evaluation of customers’ creditworthiness and set credit limits, and arrange training sessions for directors and relevant personnel on a quarterly basis. The board of directors and the compliance committee indicated that no material internal control deficiencies were identified.

The Company also announced that it has enhanced treasury management and payment procedures. A dedicated treasury committee was formed, authorization thresholds and approval hierarchies were defined for fund transfers, and segregated responsibilities were introduced for preparing cheques, maintaining cheque books, and reconciling bank accounts. The guidelines prohibit lending and other financial support without prior board approval, and regular reporting protocols have been established to assess cash flow, risk, and policy compliance. The board deemed these measures sufficient to safeguard overall operations and maintain compliance with listing requirements.