于2019年11月20日，Paypal Holdings, Inc.(Paypal)在其网站公布，其已同意以约40亿美元收购Honey Science Corporation(Honey)(建议收购项目)。在关键时间，廸生创建持有24,834,600股Honey股份，约占Honey已发行股本的3.73%(该项投资)。在廸生创建的财务报表中，该项投资被入帐为“其他金融资产”下的“非上市权益证券”，但没有对Honey作任何提述。The Securities and Futures Commission of Hong Kong initiated an investigation against Peter Tan (male), Chairman of Dynasty Creation (International) Limited (Dynasty Creation) (00113), and Equity Advantage Limited (Equity) at the Market Misconduct Tribunal.
According to the iFeng Finance app, the Securities and Futures Commission of Hong Kong initiated an investigation against Peter Tan (male), Chairman of Dynasty Creation (International) Limited (Dynasty Creation) (00113), and Equity Advantage Limited (Equity) at the Market Misconduct Tribunal. The reason is their suspected insider trading activities related to Dynasty Creation's shares. The Commission alleged that Peter Tan, with inside information on a proposed acquisition project, bought a total of 2,756,500 shares of Dynasty Creation through Equity's securities account between November 28 and December 19, 2019.
The Commission also mentioned that Peter Tan and his son Peter Guanda (Executive Director of Dynasty Creation) caused the company to violate insider trading disclosure rules, resulting in a delay of seven weeks before making the disclosure.
On November 20, 2019, Paypal Holdings, Inc. (Paypal) announced on its website that it had agreed to acquire Honey Science Corporation (Honey) for about $4 billion. At a crucial time, Dynasty Creation held 24,834,600 shares of Honey, representing approximately 3.73% of Honey's issued share capital. In Dynasty Creation's financial statements, this investment was recorded under "other financial assets" as "unlisted equity securities," with no mention of Honey.
On January 9, 2020, Dynasty Creation issued a public announcement, disclosing to the public that Paypal and Honey had completed the proposed acquisition project on January 3, 2020. As a result, Dynasty Creation would receive $147,585,708 (or about HK$1,149,545,080) in cash as income from the sale of this investment, making a profit of about HK$928,744,921 compared to the book value of the investment as of September 30, 2019. On January 10, 2020, Dynasty Creation's stock price rose to a daily high of HK$5.52 per share, closing at HK$5.00 per share, a 33.3% increase from the pre-suspension closing price.
The Commission also stated that Dynasty Creation did not promptly disclose insider information regarding the proposed acquisition project within a reasonable and practicable range. Peter Tan and Peter Guanda caused Dynasty Creation to violate insider trading disclosure rules, as they failed to take all reasonable measures to ensure proper preventive measures to avoid breaching these rules.
The Commission pointed out that Peter Tan and Peter Guanda, both senior management members of Dynasty Creation, were aware of insider information regarding the proposed acquisition project as early as November 21, 2019. However, they did not take action to ensure that Dynasty Creation's board of directors promptly disclosed this insider information to the public within a reasonable and practicable range, with Dynasty Creation only issuing a public announcement seven weeks later on January 9, 2020.
