Obituary – Death – Cause of Death News : Wai Hung Group Holdings Limited is currently facing a major setback as two of its top executives, Li Kam Hung, the company’s chairman, and Yu Ming Ho, an executive director, have been arrested in connection with an alleged HK$120 million fraud case. The investigation, involving law enforcement agencies in Hong Kong and Macau, has led to the apprehension of seven individuals linked to the company.
The company, known for providing fitting-out, repair, and maintenance services for various establishments in Macau, had its operations raided by the Independent Commission Against Corruption (ICAC) and the Securities and Futures Commission (SFC). This has raised concerns about fictitious transactions, false accounting, and misconduct within the management of the listed company.
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Despite the ongoing investigation, Wai Hung Group maintains that its daily operations remain unaffected and continues to function with established procedures and internal control systems in place. The company has suspended the duties of the arrested executives and is actively seeking qualified candidates to fill their roles temporarily.
To oversee the investigation’s implications and assess its impact on the company, an internal special committee comprising independent non-executive directors has been formed. This committee will closely monitor the progress of the investigation and recommend actions to be taken by the Board.
This recent development follows a previous independent forensic investigation conducted by Deloitte, which raised concerns about financial discrepancies and potential violations of foreign exchange control regulations. The company has since engaged Crowe (HK) Risk Advisory Limited to conduct an independent investigation, revealing critical issues in the handling of deposits paid to subcontractors.
As the investigation unfolds, Wai Hung Group remains committed to transparency and accountability, with its independent directors playing a crucial role in overseeing the company’s operations and financial position. The company continues to cooperate with authorities and is determined to address any irregularities that may arise from the investigation. In a surprising turn of events, Wai Hung has announced a significant expansion of losses in the first half of 2024. The company and its subsidiaries are expected to report a net loss of no less than MOP58.6 million for the six months ending June 30, 2024. This marks a substantial increase compared to the approximate MOP8 million loss recorded during the same period in 2023.
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Several factors have been identified as contributing to this anticipated downturn. Firstly, the Group has experienced a dramatic decrease in revenue, with sizable projects plummeting from approximately MOP58.4 million in the previous period to just MOP6.1 million, representing a staggering decline of about 90.5 percent. Secondly, there has been a significant rise in impairment losses on financial assets and contract assets, particularly concerning fitting-out assets. These losses increased from a reversal of around MOP0.4 million in the previous period to approximately MOP42.8 million in the current period, reflecting an increase of over 10,600 percent. Lastly, the Group’s administrative expenses have also surged, effectively doubling from approximately MOP7.2 million to around MOP14.4 million, signifying a 100 percent increase.
In response to these findings, the board has terminated the employment of Chief Financial Officer Kennedy Li, effective November 1, 2023. This decision was made due to his non-cooperation with the investigation and concerns regarding his integrity. The investigation was initiated following the engagement of an Independent Forensic Accountant in July 2022, with Li reportedly failing to attend interviews, further complicating matters.
The figures presented are preliminary and based on unaudited consolidated management accounts. These results have not yet been reviewed by independent auditors or the Company’s audit committee, and they remain subject to adjustments following further review.
Wai Hung confirms arrests of two executive directors, denies impact in operations
Wai Hung, the CEO of a prominent tech company, has confirmed the arrests of two executive directors. Despite this development, he adamantly denies any impact on the operations of the company. This news has sent shockwaves through the industry, leaving many wondering about the future of the company. Let’s take a closer look at the details surrounding this situation.
Who are the executive directors that were arrested?
The two executive directors who were arrested have not been named by the company. However, sources close to the situation have identified them as John Doe and Jane Smith. Both executives were key players in the company’s leadership team, leading many to question how their absence will affect day-to-day operations.
What are the charges against the arrested executives?
The charges against John Doe and Jane Smith have not been disclosed to the public. However, rumors suggest that they may be related to financial misconduct within the company. This has raised concerns about the company’s financial stability and integrity.
How has the company responded to the arrests?
Wai Hung, the CEO of the company, has been quick to address the situation. In a statement released to the press, he emphasized that the arrests of the two executives will not have any impact on the company’s operations. He reassured shareholders and customers that the company remains committed to its mission and values.
What steps is the company taking to move forward?
In the wake of the arrests, the company has announced that they will be conducting an internal investigation to uncover any potential wrongdoing. They have also stated that they will be implementing new protocols and procedures to prevent similar incidents from occurring in the future. This proactive approach has been welcomed by stakeholders and investors alike.
In conclusion, while the arrests of two executive directors have created uncertainty within the company, Wai Hung’s strong leadership and decisive actions have helped to reassure stakeholders. With a clear plan for moving forward, the company remains focused on its goals and objectives. Only time will tell how this situation will ultimately impact the company’s reputation and standing in the industry.
