S-Enjoy executive director removed after fund transfer investigation

S-Enjoy Service Group's independent forensic investigation revealed that RMB1,800 million and RMB5,170 million were transferred to Shanghai Yuesong, a Seazen Holdings subsidiary, in 2023 and 2024 respectively. These transfers, orchestrated by Mr. Yang Bo, then executive director, and Seazen Holdings staff, bypassed internal approval systems and were not properly recorded, constituting breaches of Listing Rules.

Despite the funds being fully repaid with no material adverse impact on operations or financial position, the board removed Mr. Yang Bo as executive director and chief operating officer, terminating all his directorships and senior management positions. The company will also cease employment for most involved employees.

In response to the investigation's recommendations, S-Enjoy Service Group plans to strengthen internal controls by disabling "delete" and "reverse" functions in its SAP system, prohibiting paper-based approvals, and enhancing procedures for user accounts and risk management reviews. Trading in the company's shares remains suspended since April 1, 2025.