Chiho Environmental Group Limited (Chiho Environmental) released a quarterly update detailing progress toward resuming trading of its shares, which have been suspended on the Hong Kong Stock Exchange since 1 April 2025.
Business Realignment and Liquidity • The receivers’ sale of the Scholz Group completed on 31 July 2026, yielding net proceeds of approximately US$0.33 billion for Chiho Environmental. • The inflow enabled full repayment of obligations under the previous facility agreement and the 3 September 2026 release of share charges over CRIH, CRD and CTRL. • Following the 2024 deconsolidation of certain subsidiaries and the 14 May 2025 deconsolidation of the Scholz Group, the “Continuing Group” now focuses on recycling of mixed metal and shredded aluminium scrap in mainland China and Hong Kong. Management states operations have remained stable despite the trading suspension.
Resumption Roadmap • A comprehensive resumption proposal was submitted on 21 August 2026 and updated on 17 September 2026; a further submission is planned for 30 September 2026. • The proposal outlines fulfilment progress for all Stock Exchange-mandated Resumption Guidance, including business viability, governance reforms, forensic investigation, internal control enhancement and financial reporting.
Board and Management Overhaul • All directors and senior executives who served during the period of identified irregularities have departed. • The current nine-member board—comprising five executive and three independent non-executive directors—has no overlap with the prior management team. The most recent change was the 23 September 2026 appointment of Executive Director Ms Zhang Aoxue, replacing Mr Chu Yuejiang.
Forensic Investigation and Internal Control Review • Ernst & Young Advisory Services Limited, appointed on 16 July 2026, has “substantially completed” both the forensic investigation and internal control review. • Draft reports were submitted to the Stock Exchange on 7 September 2026 and updated on 29 September 2026; finalisation awaits regulatory feedback. • Chiho Environmental has already implemented all recommended control enhancements, though testing of certain remedial measures is pending due to limited sample availability.
Financial Reporting Status • Unaudited results for FY2024, FY2025, HY2025 and HY2026 have been published, partially meeting Listing Rule requirements. • The external auditor is finalising audits for FY2024 and FY2025, contingent on completion of the forensic and internal control reports and subsequent events review.
Next Steps and Ongoing Suspension • The company is seeking legal advice on potential actions arising from the forensic findings and will provide updates as necessary. • Trading in Chiho Environmental’s shares will remain suspended until the Stock Exchange is satisfied that all resumption conditions are met.
The Board asserts that the recent cash inflow, strengthened governance framework and ongoing regulatory engagement position the group to achieve resumption. Further announcements will be issued in accordance with Hong Kong Listing Rules.