Sterling Group strengthens internal controls, treasury management

Sterling Group Holdings completed a 2025 Internal Control Review, which identified approximately HK$27.3m repaid early by Santai in April and May 2025. No new advances were identified to Santai, JPO, or other third parties for the year ended March 31, 2025, aside from previously disclosed transactions. While some policies and procedures were deemed incomprehensive, and certain duties not segregated, these findings were not considered material to overall internal control effectiveness.

In response, Sterling Group implemented several remedial measures. These include enhancing written policies for human resources, revenue, expenditure, and advance repayment cycles. The company will now segregate duties for cheque book management and issuance, maintain creditworthiness documentation, and arrange quarterly training sessions for the board and staff on listing rules and corporate governance.

Furthermore, the Group significantly enhanced its treasury management functions, establishing a treasury committee and implementing new internal control policies for cash and bank account management, funding, and compliance. Authorization thresholds for fund transfers have been set: amounts below $5,000 require approval from any two of four designated personnel. Amounts from $5,000 up to $1,000,000 or 5% of applicable percentage ratios require two executive directors and the chief financial officer. The board will approve transactions exceeding $1,000,000 or 5% of applicable percentage ratios.