Cailianshe (Shanghai, editor Zhou Xinyang) reported that was arrested by Zhou Zhuohua, Suncity Group (01383) temporarily stopped trading on the 29th. That night, the company issued a clarification announcement on the incident, and said that Zhou Zhuohua intends to resign as chairman of the company's board of directors. However, the clarification announcement seems to have failed to take effect on Tuesday. After the company's resumed trading in , its share price fell by more than 40%. As of press time, its share price still fell by 36% to HK$0.162.
Zhou Zhuohua is currently the chairman, executive director and controlling shareholder of the company. The company clarification announcement stated that except for Zhou Zhuohua, neither the company nor any of its subsidiaries had been investigated or charged. The company has clarified about cross-border gambling activities involving Crystal Tiger Palace. No employee of the group's member company has ever solicited customers for Crystal Tiger Palace's gambling business in China.
Sun City stressed that the board of directors expects that the incident will not have a significant negative impact on the group's daily operations, and the group's business was not seriously disturbed during the announcement period. The board of directors stated that the group member companies will continue to operate in accordance with local laws and regulations of the operating venues.
In addition, Zhou Zhuohua has expressed his intention to resign as chairman and executive director of the board of directors. The Board will make another announcement to inform you of any further developments in the matter.
Wenzhou Municipal Procuratorate approved the arrest of Zhou Zhuohua on November 26, and the Macao Special Administrative Region Judicial Police Department arrested him on November 27. The announcement stated that the company noticed media reports that week was involved in illegal gambling and money laundering; and illegal cross-border gambling because Tigre de Cristal comprehensive entertainment resort sent staff to China to solicit guests for its gambling business.
Crystal Tiger Palace is located in the Russian Comprehensive Entertainment District. Its 77.5% of its holding equity is indirectly held by Kaisheng Holdings (00102), which is a non-holding subsidiary of Sun City. The announcement stated that the revenue contributed by comprehensive resorts in Russia accounted for 72.5% of the group's revenue in the first half of the year.
Kaisheng Holdings was temporarily suspended on Monday. After resuming trading on Tuesday, its stock price had been halved in the morning. As of press time, its stock price was at HK$0.235, down HK$0.25 or 51.55%.
announcement admitted that Suncity Group relies on the financial support of Zhou and its affiliated companies. Once Zhou’s support is lost, the group’s financial status, business and operations will be negatively affected.
