REGAL PARTNERS (01575.HK) stated that an internal investigation was conducted regarding the accounts receivable from the Zou family. It was found that from 2018 to 2022, the company's major subsidiary in China had recorded an outstanding balance of over 37.3979 million yuan in Outflow in capital transactions with major Shareholder Zou Gebing, and failed to find valid authorization or approval for the Outflow transactions. The related transactions were not approved by independent Shareholders.

In light of the severity of the findings in the auditor's report on the capital transactions, the company has reported the above incident to the relevant law enforcement agencies and regulatory bodies in Hong Kong.

Additionally, REGAL PARTNERS pointed out that regarding the subscription for Charme Inc.'s angel round preferred stock, they have recently been unable to contact the person in charge of Charme, particularly Zou Gebing. The company stated that it had requested Charme to provide its financial and other information multiple times but has not yet received a response or feedback from Charme. Therefore, it is currently unable to ascertain Charme's financial and operating status. However, since the company's limited investment in Charme has been confirmed as a financial asset measured at fair value through profit or loss, there is a significant impairment in the consolidated financial statements for the year ending December 31, 2023. Hence, it believes that the above incident will not have a significant impact on its financial condition.