The Hong Kong stock exchange takes disciplinary action against REGAL PARTNERS (01575) and three former directors.

On January 9, the Hong Kong Stock Exchange issued a statement condemning REGAL PARTNERS Holdings Limited (formerly known as Murong Home Holdings Limited) (01575) and its former Chairman, CEO and Executive Director, Mr. Zou Gebing, former Executive Director Mr. Wu Yueming, and former Executive Director Mr. Shen Zhidong, and made a declaration of harming investor rights towards them. The declaration of harming investor rights refers to the Stock Exchange's belief that if the above individuals were to serve as directors or senior management members of the company or any of its subsidiaries, it could harm the rights of investors. Furthermore, the Stock Exchange further instructed the company to conduct an independent internal monitoring review. Mr. Zou Gebing, Mr. Wu Yueming, and Mr. Shen Zhidong were all directors and/or senior management members of the company's subsidiary Fashion Home. In October 2021, Mr. Zou and Mr. Wu caused Fashion Home to provide a guarantee for a debt owed by a company personally owned by Mr. Zou to a third party of approximately RMB 20.8 million Hong Kong dollars. There was a clear conflict of interest in the incident, but Mr. Zou and Mr. Wu did not avoid and/or manage the conflict, nor did they ensure the company complied with the relevant guarantees under the Listing Rules. Mr. Shen was not aware of the guarantee. However, he admitted that he was not familiar with the company's operations, did not oversee Fashion Home's operations and business decisions. He failed to fulfill his obligations under the Listing Rules, and the violations were very serious. REGAL PARTNERS Holdings Limited is a holding company mainly engaged in the production and sale of sofas, sofa covers, and other furniture products. The company conducts its business through two segments, including the retail segment and the production segment. The company's business model includes Original Equipment Manufacturer (OEM) mode, Original Design Manufacturer (ODM) mode, and Original Brand Manufacturer (OBM) mode. The company's products mainly include sofa covers, fixed sofas, reclining sofas, and sofas with smart home functions (audio, massage, refrigerated drinks function, Bluetooth and USB ports).