SFC suspends dealings in Dashan Education Holdings Limited shares over significant overstatement of corporate bank balances

On December 3, 2025, the Securities and Futures Commission ("SFC") ordered the Stock Exchange of Hong Kong Limited (Stock Exchange) to suspend trading in the shares of Dashan Education Holdings Limited (Dashan) pursuant to the Securities and Futures (Stock Market Listing) Rules ("SMLR"), effective immediately. This action was taken to uphold a fair and orderly market and safeguard the interests of the investing public as the SFC continues its investigation into Dashan.

Dashan's shares were initially suspended on March 30, 2023, following an audit conducted by the company's former auditor, which identified discrepancies related to the software development project from April 2022 to November 2023 and the acquisition of a UK-based company in September 2022. Trading resumed in September 2024 following an internal investigation by Dashan and its advisors, which found no adverse findings and the publication of its 2022 and 2023 financial statements.

However, an SFC inquiry into the payments for the software development project and the UK acquisition revealed significant discrepancies between Dashan's provided bank statements and those independently obtained by the SFC. The SFC discovered material overstatements of bank balances in Dashan's financial statements totaling RMB36.4 million as of June 30, 2023, and RMB76.3 million as of December 31, 2023. These figures represented 19% and 55% of Dashan’s net asset value as stated in its 2023 financial results.

These findings led the SFC to suspect that the software development project and UK acquisition were not genuine or conducted at arm’s length, and that Dashan had submitted fabricated bank statements to hide questionable fund flows. Furthermore, the SFC suspected that the resumption of trading in Dashan’s shares on September 2, 2024, was predicated on false or misleading information provided by Dashan. As of the date of the article, Dashan has not provided a satisfactory explanation for the SFC’s concerns, leading to the SFC’s directive to the Stock Exchange to suspend dealings in Dashan’s shares.