Hong Kong Securities and Futures Commission secures HKD 4 million compensation and five-year disqualification orders against former Coolpad executive director

The Hong Kong Securities and Futures Commission (SFC) has obtained Court of First Instance orders requiring Zhang Wei, a former executive director of Coolpad Group Limited, to pay HKD 4 million in compensation to Coolpad and disqualifying him for five years from being a director or otherwise being involved in the management of any listed or unlisted corporation in Hong Kong. He was also ordered to pay the SFC’s costs. The case concerns five transactions between 2016 and 2017 under which Coolpad and its subsidiaries provided around RMB2 billion, allegedly as short-term financing, to entities held and or controlled by the company’s former chairman and substantial shareholder, without proper approval or disclosure to shareholders. The SFC found the transactions caused Coolpad losses of around RMB84 million, and Zhang admitted breaches of duty including failing to act in good faith and in Coolpad’s best interests, not exercising independent judgment when approving two of the transactions and authorising remittances for three, and failing to ensure timely disclosure of auditors’ concerns about the transactions and the company’s ability to continue as a going concern. The SFC’s legal proceedings against six other former Coolpad directors remain ongoing. The orders were made on 17 December 2025 following disposal of the proceedings under the Carecraft procedure, with a written judgment to be handed down in due course.