Ocean Star Technology Group Limited has announced the completion of a comprehensive internal-control overhaul following Stock Exchange of Hong Kong (SEHK) resumption guidance. Despite the remedial progress, the company’s shares, suspended since 2 July 2025, will remain halted until further notice.
Ocean Star engaged VAG Consulting Limited as an independent internal-control consultant on 24 October 2025. The consultant’s review focused on five critical areas—corporate-level risk management, financial reporting, expenditure control, human-resources succession, and compliance training—after the SEHK issued additional resumption guidance on 13 April 2026 requiring proof of effective internal controls.
Key findings and remedies implemented:
1. Corporate-level controls: A previously absent risk-assessment framework contributed to delayed disclosures and trading suspension. Ocean Star has introduced a 3×3 risk matrix, a corporate risk register, and formalised Audit Committee oversight. Status: fully implemented.
2. Financial reporting: High turnover, including the departure of the former CFO, disrupted statutory reporting and breached GEM Listing Rules 18.03, 18.48A and 18.78. The group has rebuilt its finance function, adopted standard month-end closing SOPs, mandated documentation checklists, and migrated records to a secure cloud repository. Status: fully implemented.
3. Expenditure management: Weak segregation of duties and ad-hoc cash-flow monitoring exposed the company to liquidity pressures. A rolling 12-month working-capital budget, liquidity-alert thresholds, and a three-way matching system are now in force. Stand-by loan facilities have also been arranged. Status: fully implemented.
4. Human-resources succession: Rapid executive departures previously left critical roles uncovered, heightening compliance risk. A board-approved succession plan, mandatory handover protocols, and external standby advisers have been instituted. Status: fully implemented.
5. Compliance training: Inadequate awareness of GEM Listing Rules contributed to disclosure lapses. Ocean Star has launched an annual mandatory training programme for directors, senior management and staff, supported by a centralised tracking log. Status: fully implemented.
The Audit Committee, the full Board—including independent non-executive directors—and VAG Consulting concur that all identified deficiencies have been rectified and the upgraded systems are adequate for ongoing GEM Listing Rule compliance. The company will continue monitoring and maintaining these controls.
Trading in Ocean Star shares on the SEHK remains suspended. Shareholders and potential investors are advised to exercise caution when dealing in the company’s securities.