Hong Kong SFC Obtains 12 Months to 33 Months Disqualification Orders Against 4 ex-Directors of China Candy Holdings for Negligence & Failing to Uncover Overstatement of Cash & Bank Balances by 97% in 2016 (Ex-Chair & Executive Director Yvonne Hung 33 Months, Li Yuna 24 Months, Fangus Chu Wai Wa 12 Months & Ong King Keung 12 Months)
8th May 2026 | Hong Kong
Hong Kong Securities and Futures Commission (SFC) has obtained 12 months to 33 months disqualification orders against 4 ex-Directors of China Candy Holdings for negligence, and failing to uncover overstatement of cash & bank balances by 97% in 2016. The disqualification orders are against ex-Chair & Executive Director Yvonne Hung 33 months, Li Yuna 24 months, Fangus Chu Wai Wa 12 months & Ong King Keung 12 months. In 2023 December, the Hong Kong Securities & Futures Commission (SFC) obtained a Director disqualification order for 3 years (Hong Kong court) against former independent Director of China Candy Holdings Nicholas Chiu Shi Chuen for negligence, including failing to uncover overstatement of cash & bank balances by 97% in 2016. Announcement (7/5/26): “The Securities and Futures Commission (SFC) has obtained disqualification orders with durations of up to 33 months in the Court of First Instance against four former directors of China Candy Holdings Limited (China Candy) over their negligence in failing to uncover the overstatements in the company’s financial records and in discharging their duties as directors (Notes 1 and 2). The four former directors of China Candy named in the SFC’s legal proceedings are: Ms Li Yuna and Ms Yvonne Hung, former executive directors and chairpersons; Mr Fangus Chu Wai Wa and Mr Ong King Keung, former independent non-executive directors (Note 3). Under the court orders, Hung and Li were disqualified for 33 months and 24 months respectively, while Chu and Ong were disqualified for 12 months each, from being a director, liquidator, receiver or manager of, or being involved in the management of, any corporation in Hong Kong. They were also ordered to pay the SFC’s costs in the proceedings (Notes 4 to 6). The SFC’s legal action stemmed from its investigation which found material overstatements in China Candy’s cash and bank balances, as disclosed in its 2016 interim report and 2016 annual report, by 87% and 97% respectively. The SFC also found that China Candy’s bank and accounting records had been fabricated to cover up the overstatements. The four former directors admitted that they had relied on the external professionals to identify and report potential red flags. The internal control review reports prepared by the external professionals in 2015 and 2016 identified several issues, including discrepancies in cash counts, absence of petty cash records, and inconsistencies in the reporting of monthly management accounts and bank reconciliations. However, the four former directors failed to properly scrutinise these issues and verify whether the promised remedial measures had been implemented. By failing to do so, they had abdicated their duties to independently identify and assess the overstatements and fabrication. The SFC’s legal proceedings against these four former directors are part of the SFC’s legal action against former directors and ex-financial controller of China Candy. Notably, the SFC alleges that China Candy’s former chairman and executive director, Mr Xu Jinpei; its former chief executive officer and executive director, Ms Hong Yinzhi; and former chief financial controller, Mr Wang Zhihong, were, at the material time, the instigators and perpetrators of, or at least knowingly permitted, acquiesced or turned a blind eye to the overstatements and fabrication. The court hearing on the legal proceedings against the trio was concluded in March 2026, pending the judgement.
“ Hong Kong SFC Obtains 12 Months to 33 Months Disqualification Orders Against 4 ex-Directors of China Candy Holdings for Negligence & Failing to Uncover Overstatement of Cash & Bank Balances by 97% in 2016 (Ex-Chair & Executive Director Yvonne Hung 33 Months, Li Yuna 24 Months, Fangus Chu Wai Wa 12 Months & Ong King Keung 12 Months) “
![](https://www.caproasia.com/wp-content/uploads/2025/08/Air-Charter-Service-728x90-1.png")
Notes:
- China Candy’s shares were listed on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited on 11 November 2015 (former stock code: 8182). The listing of its shares was cancelled with effect from 31 December 2019.
- The SFC commenced proceedings under section 214 of the Securities and Futures Ordinance in May 2022. Please see the SFC’s press release dated 20 April 2023.
- Li was an executive director (ED) of the Company from 30 December 2016 and the Company’s chairman from 31 July 2017, until her resignation with effect from 30 November 2017. Hung was an ED of the Company since 2 February 2017 and the chairman of the Company since 30 November 2017, until her resignation with effect from 6 March 2026. Chu was an independent non-executive director (INED) of the Company from 26 October 2015 until his resignation with effect from 24 July 2017. Ong was an INED of the Company from 29 February 2016 until his resignation with effect from 14 September 2017.
- The orders were made following the Court’s approval that the proceedings against Li, Hung, Chu and Ong could be disposed of by way of Carecraft procedure, under which the Court determines the appropriate orders to be made based on an agreed statement of facts and agreed proposed orders.
- The judgment is available on the Judiciary’s website (Case No. HCMP 572/2022).
- In September 2023, the SFC obtained disqualification order in the same proceedings against a former INED Mr Nicholas Chiu Sai Chuen for three years. Please see the SFC’s press release dated 12 December 2023.
Hong Kong SFC Obtains Director Disqualification Order for 3 Years Against Ex-Independent Director of China Candy Holdings Nicholas Chiu Shi Chuen for Negligence, Failed to Uncover Overstatement of Cash & Bank Balances by 97% in 2016
13th December 2023 – The Hong Kong Securities & Futures Commission (SFC) has obtained a Director disqualification order for 3 years (Hong Kong court) against former independent Director of China Candy Holdings Nicholas Chiu Shi Chuen for negligence, including failing to uncover overstatement of cash & bank balances by 97% in 2016. Hong Kong SFC: “Chiu was disqualified from being a director and being involved in the management of any listed or unlisted corporation in Hong Kong, without the leave of the court, for a period of three years. He was also ordered to pay the SFC’s costs in the proceedings. The SFC’s investigation found that China Candy’s financial strength was falsely and misleadingly portrayed in the company’s interim and annual reports for 2016. In particular, the company’s cash and bank balances were overstated by 87% and 97% as of 30 June 2016 and 31 December 2016 respectively. The SFC alleged that China Candy’s former Chairman, Chief Executive Officer and Chief Financial Officer were involved in and/or had knowledge of the fabrication of bank and accounting records to cover up the overstatements, whereas other directors including Chiu had acted negligently in the matter. The disqualification order was made after Chiu admitted that he failed to uncover the overstatements and acted negligently in discharging his duties as director. He also admitted that he did not pay attention to potential red flags in China Candy’s treasury, cash management and financial reporting functions identified by an internal control consultant engaged by the company. He also accepted that as an independent non-executive director and audit committee member, he ought to be in a position but failed to monitor, inquire into and/or verify the financial position of the company. Although Chiu was not involved in running China Candy’s day-to-day business, his negligence caused substantial harm and prejudice to shareholders and denied their access to information as to the company’s true financial position. The duration of Chiu’s disqualification was to reflect the gravity of his misconduct. The SFC’s proceedings against other former senior management of China Candy are ongoing.” See below for more info:
Hong Kong SFC Obtains Director Disqualification Order for 3 Years Against Ex-Independent Director of China Candy Holdings Nicholas Chiu Shi Chuen for Negligence
12th Dec 2023 – The Securities and Futures Commission (SFC) has obtained a disqualification order in the Court of First Instance against a former independent non-executive director of China Candy Holdings Limited (China Candy), Mr Nicholas Chiu Sai Chuen (Notes 1 & 2). Chiu was disqualified from being a director and being involved in the management of any listed or unlisted corporation in Hong Kong, without the leave of the court, for a period of three years. He was also ordered to pay the SFC’s costs in the proceedings (Notes 3 & 4).
- The SFC’s investigation found that China Candy’s financial strength was falsely and misleadingly portrayed in the company’s interim and annual reports for 2016. In particular, the company’s cash and bank balances were overstated by 87% and 97% as of 30 June 2016 and 31 December 2016 respectively.
- The SFC alleged that China Candy’s former Chairman, Chief Executive Officer and Chief Financial Officer were involved in and/or had knowledge of the fabrication of bank and accounting records to cover up the overstatements, whereas other directors including Chiu had acted negligently in the matter.
- The disqualification order was made after Chiu admitted that he failed to uncover the overstatements and acted negligently in discharging his duties as director. He also admitted that he did not pay attention to potential red flags in China Candy’s treasury, cash management and financial reporting functions identified by an internal control consultant engaged by the company. He also accepted that as an independent non-executive director and audit committee member, he ought to be in a position but failed to monitor, inquire into and/or verify the financial position of the company.
Although Chiu was not involved in running China Candy’s day-to-day business, his negligence caused substantial harm and prejudice to shareholders and denied their access to information as to the company’s true financial position. The duration of Chiu’s disqualification was to reflect the gravity of his misconduct. The SFC’s proceedings against other former senior management of China Candy are ongoing.
Notes:
- China Candy was listed on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited (SEHK) on 11 November 2015 until its listing status was cancelled by SEHK with effect from 31 December 2019. Chiu was an independent non-executive director of China Candy from 26 October 2015 to 31 December 2019.
- The legal proceedings were commenced under section 214 of the Securities and Futures Ordinance to seek disqualification orders against seven former directors of China Candy and China Candy’s former chief financial controller. Please see the SFC’s press release dated 20 April 2023.
- The order was made following the Court’s approval that the proceedings against Chiu could be disposed of by way of Carecraft procedure where the Court determines the appropriate orders to be made based on an agreed statement of facts and agreed proposed orders.
- The judgment is available on the Judiciary’s website (Court Reference: HCMP 572/2022).
Caproasia Users
- Manage $20 million to $30 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2026 Investment Day
- March - Hong Kong
- March - Singapore
- April - Hong Kong
- April - Singapore
- July - Hong Kong
- July - Singapore
- Sept- Hong Kong
- Sept - Singapore
- Oct- Hong Kong
- Nov - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
