Tradingin the Company's shares was suspended on 28 January 2013. The Exchange has decided to cancel the listing of the Company's shares under Rule 6.01(4) on the ground that the Companyor its business is no longer suitable for listing.

The Exchangearrived at its decision having considered, among others, the following:

1. Based on the findings of the High Court of the Hong Kong SAR in HCCW210/2013 (set out in its reasons for decision of 9 March 2015), the Company appeared to have obtained its initial listing by fraud. According to these findings, the Company had implemented a fraudulent scheme to create accounts which significantly overstated its business and profits. These accounts were set out in its IPO prospectus for the purposes of its application for initial listing and inducing investors to subscribe for shares. In the circumstances, the Company or its business should not have qualified for initial listing in the firstplace.
2. With the significantly overstated business and profits in the IPO prospectus, investors were induced to subscribe for and purchase the Company's shares. They were deprived of the information necessary for them to make a properly informed assessment of the Company.
3. After the Company's listing, public investors continued to be deprived of the necessary information to appraise the Company. Based on the court findings, the Company continued the fraudulent scheme to overstate its business and profits post listing until the Securities and Futures Commission filed the petition for winding up in July 2013. In addition, the Company has not complied with its continuing obligations under the Rules to publish any periodic financial statements since publishing its 2012 interim results.
4. There is a serious concern about the management integrity, based on the court findings that Mr Chun Chi Wai (Mr Chun), being the chairman and one of the two executive directors, was highly likely to have planned and implemented the fraudulent scheme. As Mr Chun held and continues to hold a 53 per cent interest in the Company, it is highly likely that he will be able to exert substantial influence over the operation and management ofthe Company even if he resigns as a director of the Company.
5. The Company has been put in liquidation.


HKEx - Hong Kong Exchanges and Clearing Ltd. issued this content on 2015-12-31 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2015-12-31 04:10:12 UTC

Original Document: http://www.hkex.com.hk/eng/newsconsul/hkexnews/2015/151231news.htm