HC GROUP (02280) has announced that it received a letter from the stock exchange on June 25, 2026. The letter outlines the following guidance for resuming trading of the company's shares.
The first requirement is to publish all outstanding financial results as mandated by the listing rules and to address any audit modifications.
Secondly, the company must conduct a proper independent forensic investigation concerning the prepayments to certain suppliers related to the group's B2B business for the year ended December 31, 2025, as referenced in the company's announcement dated March 23, 2026. The impact on the group's business operations and financial position must be assessed, the findings disclosed, and appropriate remedial actions taken.
A third directive is to demonstrate that there are no reasonable regulatory concerns regarding the integrity, competence, and/or character of the group's management or any individuals with significant influence over the company's management and operations. Such concerns must be shown not to pose risks to investors or undermine market confidence.
The fourth stipulation involves the appointment of an independent internal control advisor to perform a review. The company must demonstrate that it has identified and rectified the material weaknesses related to the trading suspension, implemented all necessary remedial measures, and that its internal controls are sufficient to effectively achieve their purpose. This includes ensuring compliance with listing rules and other legal and regulatory requirements, covering areas such as financial reporting, disclosure and compliance for reportable and connected transactions, and the handling of inside information.
Furthermore, the company must prove its compliance with Listing Rule 13.24.
Finally, all material information must be disclosed to the market to enable shareholders and investors to properly assess the company's status.