Advised Honworld Group Limited on the Resumption of Trading on the Stock Exchange
2022-12-30
Chungs Lawyers (in association with DeHeng Law Offices) has advised Honworld Group Limited (Stock Code: 2226) (the “Company”, together with its subsidiaries, the “Group”) to successfully resume trading of its shares on the Stock Exchange of Hong Kong Limited (the “Stock Exchange”). The Group is one of the leading manufacturers of condiment products in the PRC. Trading in the Company’s shares had been suspended with effect from 30 March 2021. Pursuant to the resumption guidance (the “Resumption Guidance”) imposed by the Stock Exchange, the resumption conditions that the Company should satisfy include the following conditions:
to demonstrate the Company’s compliance with Rule 13.24 of the Rules Governing the Listing of Securities on the Stock Exchange (the “Listing Rules”), which provides that the Company shall carry out its business with a sufficient level of operations and assets of sufficient value to support its operations;
to conduct an independent investigation into the relevant matters, announce the investigation findings, assess and announce the impact on the Company’s operation and financial position, and take appropriate remedial actions;
to demonstrate that there is no reasonable regulatory concern about management integrity and/or the integrity of any persons with substantial influence over the Company’s management and operations, which may pose a risk to investors and damage market confidence;
to demonstrate that the directors of the Company meet a standard of competence commensurate with their position as directors of a listed issuer to fulfill duties of skill, care and diligence as required under Rule 3.09 of the Listing Rules; and
to conduct an independent internal control review and demonstrate that the Company has in place adequate internal controls and procedures to meet obligations under the Listing Rules.
Chungs Lawyers worked closely with the Company team and the Company’s professional advisers to assist the Company in formulating the appropriate approach on fulfilling the Resumption Guidance. Chungs Lawyers assisted in communicating with the regulators, advising on the scope of the independent forensic investigations and internal control review, handling legal and regulatory issues encountered by the Company in the process of resumption, and providing training to the Company’s directors and senior management on the Listing Rules.
As all the resumption conditions have been satisfied, the Company has been approved by the Stock Exchange for the resumption of trading in the Company’s shares. Trading in the shares of the Company on the Stock Exchange resumed with effect from 9:00 a.m. on 23 December 2022.
