RAFFLESINTERIOR(01376.HK): Independent Investigation Uncovers Material Irregularities; Former Executive Director Allegedly Signed HK$300‑Million Acquisition Without Authorisation, Spousal Connected‑Party Transaction Suspected of Generating HK$288‑Million

NewTimeSpace · 2026/08/04 19:20 · By Xuran Lin

NewTimeSpace News: Raffles Interior Limited (01376.HK) announced key interim findings from an independent investigation. The investigation uncovered that former Executive Director Mr. Zheng Nenghuan unilaterally signed an acquisition agreement on behalf of the Company at a consideration of HK$300 million on 3 November 2025 without Board authorisation, for assets beneficially owned by his spouse Ms. Tang Judi. The assets were acquired for RMB10 million and resold to the Company at HK$300 million merely five weeks later, raising suspicions of benefit transfer and material concealment. The Board expressed serious concerns regarding his integrity and suitability to act in a director capacity.

NewTimeSpace News: Raffles Interior Limited (01376.HK) released an inside‑information announcement on 4 August 2026, disclosing material interim findings from an independent investigation.

The investigation found that without prior knowledge or approval from the Board, former Executive Director Mr. Zheng Nenghuan unilaterally executed a sale‑and‑purchase agreement on behalf of the Company on 3 November 2025 at a consideration of HK$300 million, intended to acquire 100% equity interest in Kunyuan.

The investigation further revealed that Mr. Zheng also unilaterally engaged a law firm and instructed it to apply to HKEX for a temporary trading suspension. The target assets were ultimately beneficially owned by Ms. Tang Judi, spouse of Mr. Zheng, through Kunyuan, yet Mr. Zheng represented to the Board that the seller was an independent third party. The target assets were purchased for RMB10 million on 30 September 2025 and would have been sold to the Company for HK$300 million only five weeks afterwards. Had the transaction been completed, his spouse would have realised an estimated gain of approximately HK$288 million. Key land‑development conditions, namely commencement of construction by 3 December 2025 and completion by 3 December 2026, were not disclosed to the Board. The date of signing the sale‑and‑purchase agreement coincided with the date on which Mr. Zheng received a margin‑call notice.

It was also found that in an email to the Board dated 4 November 2025, Mr. Zheng stated that the counterparty to the transaction was an independent third party, notwithstanding clear links between the seller structure and his spouse. The Board is of the view that prima‑facie evidence exists suggesting Mr. Zheng deliberately omitted material information in an attempt to secure Board approval. The Company’s shares have been suspended from trading since 1 April 2026 and will remain suspended.

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01376.HK RAFFLESINTERIOR independent investigation