Dickson Concepts (00113.HK) announced that it has been notified by the Securities and Futures Commission that the Commission has initiated an inquiry into the company, the Group's Executive Chairman and Executive Director Dickson Poon, Equity Advantage Limited (EAL), a company related to the Group, and Chief Operating Officer and Executive Director Dick Wong Tat regarding market misconduct.

On January 9, 2020, the company announced that PayPal Holdings, Inc. has acquired the minority interests held by the Group in Honey Science Corporation, realizing approximately 0.148 billion yuan from the investment. In the inquiry process of the Securities and Futures Commission, the Commission alleged that the company should have disclosed the acquisition transaction earlier, alleging that the company, Dickson Poon, and Dick Wong Tat violated the disclosure requirements of the Securities Ordinance; and Dickson Poon was accused of engaging in insider trading under the Securities Ordinance by trading in Group shares through EAL before the announcement was made.

The Group denies the allegations made against the company and is seeking legal advice on the notification, and will make further announcements as necessary. Dickson Poon and Dick Wong Tat have informed the company that they strongly deny the allegations made against them and will vigorously defend themselves in the inquiry process.