Kangqiao Service Group Confronts Banking Irregularity

Kangqiao Service Group Limited (HK:2205) has released an update.

Kangqiao Service Group Limited discovered an irregularity where RMB200 million was temporarily withdrawn from its subsidiary’s account by a bank in China, linked to a promissory letter signed by an executive for a loan taken by the chairman’s company. Despite the funds being returned and no immediate financial impact, the company is contemplating legal action against the bank for the unauthorized transaction and breach of regulations. Kangqiao Service Group is also considering reporting the issue to higher authorities to protect its interests and those of its shareholders.

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