{"id":20886,"date":"2025-04-01T16:43:44","date_gmt":"2025-04-01T09:43:44","guid":{"rendered":"https:\/\/thaipropertynews.com\/feeds\/?p=20886"},"modified":"2025-04-01T16:43:44","modified_gmt":"2025-04-01T09:43:44","slug":"china-high-speed-transmission-equipment-group-commences-legal-proceedings-for-fund-misappropriation-of-rmb-6-64-billion","status":"publish","type":"post","link":"https:\/\/thaipropertynews.com\/feeds\/?p=20886","title":{"rendered":"China High Speed Transmission Equipment Group Commences Legal Proceedings for Fund Misappropriation of RMB 6.64 Billion"},"content":{"rendered":"\n\n\n
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HONG KONG<\/span><\/span>, April 1, 2025<\/span><\/span> \/PRNewswire\/ — The Board of Directors (the “Board<\/b>“) of China High Speed Transmission Equipment Group Co., Ltd. (the “Company<\/b>“,\u00a0Stock Code: 0658.HK, together with its subsidiaries, the “Group<\/b>“) today\u00a0announced that its wholly-owned subsidiaries, Nanjing High Accurate Drive Equipment Manufacturing Group Co., Ltd. (“Nanjing<\/span> <\/b>Drive<\/b>“), Nanjing Handa Import and Export Trade Co., Ltd. (“Nanjing<\/span> <\/b>Handa<\/b>“) and Nanjing Shengzhuang Supply Chain Co., Ltd. (“Nanjing<\/span> <\/b>Shengzhuang<\/b>“, together with Nanjing Drive and Nanjing Handa, the “Relevant Subsidiaries<\/b>“), issued a\u00a0writ of summons (HCA 656\/2025) in the High Court of Hong Kong\u00a0on 31 March 2025<\/span>.<\/p>\n

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The Legal Proceedings<\/b><\/p>\n

The action is brought against\u00a0the following defendants (the “Defendants<\/b>“):<\/p>\n

(1)\u00a0 Fang Jian (former Executive Director of the Company and former Legal Representative of the Relevant Subsidiaries),<\/p>\n

(2)\u00a0 Fullshare Holdings Limited (“Fullshare<\/b>“,\u00a0Stock Code: 0607.HK),<\/p>\n

(3)\u00a0 Five Seasons XVI Limited, a wholly-owned subsidiary of Fullshare,<\/p>\n

(4)\u00a0 Ji Changqun\u00a0(Chairman and Executive Director of Fullshare),<\/p>\n

(5)\u00a0 16 other companies\u00a0(the “Counterparties<\/b>“) which are counterparties to\u00a0certain agreements for the sale and purchase of commodities (the “Agreements<\/b>“), and<\/p>\n

(6)\u00a0 10 other individuals who were Fullshare personnel improperly involved in the administration, financial management and contract approval of the Relevant Subsidiaries.<\/p>\n

The claim is based on the alleged wrongful conduct of the Defendants, which resulted in the loss of RMB 6.64 billion<\/span> (the\u00a0“Relevant Amounts<\/b>“) of the Relevant Subsidiaries.<\/p>\n

The legal action reflects the Group’s commitment to safeguarding the interests of all shareholders, particularly minority shareholders, in light of potential unlawful activities by the Defendants.<\/p>\n

“Our Board takes\u00a0this matter very seriously and has\u00a0taken decisive steps to protect the Group’s interests and uphold our obligations to shareholders,” said Hu Jichun, Chairman of the Group. “We are duty-bound to rectify any misconduct that undermines corporate governance and shareholder value. We will pursue all necessary legal remedies to ensure accountability and transparency.”<\/p>\n

Key Considerations<\/b><\/p>\n

As of 31 October 2024<\/span>, receivables and pre-payments due to the Relevant Subsidiaries under the Agreements totaled approximately\u00a0RMB 6.64 billion.\u00a0<\/p>\n

Demand letters were sent to the Counterparties, which were not properly answered. Amongst the limited replies received, the Counterparties claimed that amounts owed were transferred to third parties following instructions from the Relevant Subsidiaries.<\/p>\n

The Relevant Subsidiaries\u00a0have\u00a0reported to the authorities in the PRC, which have, after vetting, initiated formal criminal investigation into suspected embezzlement and misappropriation of the Relevant Subsidiaries’ funds and assets by individual(s) in position(s) of authority.<\/p>\n

Whilst the details surrounding the Relevant Amounts are still under independent investigation and formal criminal investigation, the Company and the Relevant Subsidiaries have been advised of the following:<\/p>\n