Raffles Interior chairman accused of conspiracy to defraud shareholders

Raffles Interior Limited received a complaint on November 18, 2025, alleging that its chairman, Zheng Nenghuan, orchestrated a conspiracy to defraud the company and its minority shareholders. This was allegedly done through an unauthorized acquisition of a Shenzhen land plot. The complaint, supported by documentary evidence, claims the land's estimated value of RMB120m is significantly lower than the agreed contract price of HK$300m, potentially enriching Zheng's spouse, Tang Judi, who signed the Sale and Purchase Agreement. The board emphasized its decision not to proceed with the acquisition and its responsibility to ensure legal termination of the agreement.

Following the complaint, Raffles Interior's external auditors issued a letter on November 21, 2025, highlighting serious allegations against Zheng Nenghuan. The letter raised concerns about management's integrity, internal controls, and the reliability of financial reporting. The auditors requested a formal response to questions regarding the Sale and Purchase Agreement and the target asset's valuation, as well as an update on investigative steps and remedial actions.

The audit committee and the board are considering necessary actions, including internal and external investigations, to address the auditors' concerns and ensure compliance with listing rules for publishing annual audited financial statements. The company will issue further announcements on material developments.