Hong Kong Securities and Futures Commission seeks court disqualification orders against three former China Longevity directors over alleged cash overstatements

Hong Kong’s Securities and Futures Commission has applied to the Court of First Instance for disqualification orders against three former directors of China Longevity Group Company Limited under section 214 of the Securities and Futures Ordinance, following an investigation into alleged material misstatements in the company’s financial reporting. The proceedings name Mr Lin Shengxiong (former Chairman and Executive Director), and Mr Zhang Hongwang and Mr Huang Wanneng (both former Executive Directors). The SFC’s investigation concerns alleged overstatements of China Longevity’s cash and cash equivalents by about RMB198.9 million and RMB302.4 million as at 31 December 2011 and 30 June 2012, representing about 13.6% and 19.9% of net assets at those dates, which the SFC says resulted in material misstatements in the annual reports for the years ended 31 December 2011 and 2012 and the interim report for the six months ended 30 June 2012. The SFC also alleges the former directors failed to cause or procure timely, accurate and complete disclosure of the discovery of the overstatements and other audit irregularities identified by the company’s then auditors. The petition was filed on 25 November 2022, with the respondents domiciled in the Mainland, and the court granted leave on 28 April 2023 for service out of the jurisdiction with judicial assistance sought in the Mainland. A first direction hearing was held on 30 October 2025 and the next case management conference is scheduled for 25 February 2026.