Zhitong Finance App, Huaxing Holdings (08237) announced that on November 10, 2023, the company and its wholly-owned subsidiaries Silverine Pacific Limited, Hang Huo Investment Pte Ltd (HHI) and Link Hotels International Ptd Ltd (collectively, the “Plaintiff”) filed with the Hong Kong Special Administrative Region on the grounds that their directors and/or senior employees as plaintiffs breached their trustworthiness and/or statutory liability The High Court filed subpoenas against Dato' Siu Bo-tao and Yan Yi, who each served as the former chairman of the board of directors and former executive director, and Tang Qinghua, the company's former company secretary and authorized representative, for a joint statement of claim. Yan Yi is the former controlling shareholder of the company and is Xiao Botao's wife and uncle.

The plaintiff believes that from around 2020 to early 2023, the defendant committed a number of misconduct, including but not limited to prompting the company to issue a new set of convertible bonds, violating the terms and conditions of the existing convertible bonds; causing the company to change the use of proceeds from the new convertible bonds to settle loans to Yan Yi's shareholders; and causing the company and its subsidiaries to enter into a non-commercial loan agreement with loss conditions, in violation of the terms and conditions of the existing convertible bonds, which led the Hong Kong court to target the company against the company The issuance of a restraining order and the Singapore court's winding-up petition against HHI; as a result, although the company spent excessive resources to appoint Tang Qinghua as a “presidential funder” and a third-party consulting service company called Heatherlands Partnership Pte Ltd without board approval, it was unable to obtain other capital for the company; as a result, it would pay excessive bonuses to Tang Qinghua; and the failure to induce the company to prepare the Group's annual audited results for the fiscal year ended December 31, 2022, led to the company's shares starting April 3, 2023 Trading has been suspended since then.

The plaintiff claimed from the defendant for fair compensation and/or loss compensation of approximately HK$51.6 million due to breach of fiduciary duty and/or due diligence to the plaintiff, together with losses and damages to be assessed due to the loss of the company's listing status.