REDCO HEALTHY (02370.HK): HKEX Takes Disciplinary Action against Redco Healthy Living and Two Executive Directors
NewTimeSpace News: The Stock Exchange of Hong Kong Limited has taken disciplinary action against Redco Healthy Living Limited (02370.HK) and two executive directors, Tang Chengyong and Huang Yanwen, with formal censures issued to the Company and the relevant directors. Investigations uncovered multiple undisclosed fund flows and transactions between 2022 and 2023, including a RMB100 million earnest money deposit, refundable deposits totalling RMB30.8 million and connected transactions worth RMB61.5 million, breaching multiple provisions under the Listing Rules. The Exchange directed the two directors to complete 27 hours of regulatory training.
NewTimeSpace News: On 28 July 2026, The Stock Exchange of Hong Kong Limited issued a statement of disciplinary action, imposing disciplinary sanctions against Redco Healthy Living Limited (02370.HK) and two executive directors, Tang Chengyong and Huang Yanwen.
Investigations revealed a series of improperly undisclosed fund flows and transactions conducted by the Company from around its March 2022 listing up to June 2023:
Audit Issue 1: Between April and December 2022, the Group paid RMB100 million earnest money to Rich Well for a potential acquisition, constituting a loan to an entity. The transaction failed to be announced pursuant to Listing Rules 13.13 and 13.15.
Audit Issue 2: From November to December 2022, the Group paid aggregate refundable deposits of RMB30.8 million to nine target companies and provided guarantees for relevant repayments. This constituted a notifiable transaction, which was not disclosed under Rule 14.34, nor did the Company consult its compliance adviser.
Audit Issue 3A: In 2022, the Group paid RMB61.50 million earnest money to its parent company. This constituted a notifiable and connected transaction, whereby the Company failed to comply with requirements for announcements, circulars and independent shareholders’ approval.
Audit Issue 3B: Between September and December 2022, short-term transitional loans of approximately RMB102.95 million were arranged between the Group and its parent company without proper record-keeping and documentation.
The Exchange ruled that the Company breached Listing Rules 3A.23, 13.13, 13.15, 14.34, 14A.34, 14A.35, 14A.36 and 14A.46. Mr. Tang and Ms. Huang breached Rules 3.08 and 3.09B(2) for failing to act with reasonable skill, care and diligence. The Exchange ordered the two directors to complete 27 hours of relevant training within 90 days.
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