Raffles Interior Limited (Stock Code: 1376) issued an announcement regarding its 2025 annual audit progress and unresolved integrity issues linked to Executive Director and controlling shareholder, Mr. Zheng. The update references previous disclosures that revealed an unauthorized Sale and Purchase Agreement worth HK$300.00 million, litigation concerns, and multiple complaint letters questioning Mr. Zheng’s suitability and actions.

According to the announcement, the company’s external auditors identified serious integrity concerns arising from allegations that Mr. Zheng misled other Board members about the aforementioned agreement. The auditors also pointed to ongoing lawsuits, a demand letter threatening possible asset disposition, and potential uncertainties regarding the company’s ability to continue as a going concern. As a result, the auditors have substantially expanded their scope of work, particularly focusing on related-party transactions and internal controls.

The announcement notes that, unless the internal investigation conducted by the Independent Board Committee can be completed with sufficient evidence and cooperation from Mr. Zheng, the auditors may not be able to finalize their opinion on the 2025 financial statements. This could compromise the timely release of audited results by the 31 March 2026 deadline. The announcement further warns that failure to publish audited results by the required date could trigger a trading suspension in the company’s shares. Raffles Interior Limited states that efforts are ongoing to address these matters, with particular attention to expediting investigations and alleviating outstanding audit concerns.