Ruisen Life Service Co, Limited: In-Depth Quarterly Update on Resumption Progress, Financial Restoration, and Key Management Changes

Key Takeaways for Investors

• Resumption Application Submitted: The Company has formally submitted its application for the resumption of trading to the Hong Kong Stock Exchange on 9 February 2026. Trading remains suspended pending regulatory review.
• Comprehensive Remedial Actions Completed: All outstanding financial statements have been published, significant management and governance reforms have been implemented, and major internal control enhancements have been completed.
• Financial Recovery and Growth: The Group reported sustained revenue growth, improved profitability, and a robust asset base for the latest period, indicating a strong recovery and operational sustainability.
• Material Restatements and Audit Adjustments Addressed: Previous financial misstatements for 2023 have been corrected, with details disclosed for transparency.
• Significant Board and Management Changes: All directors implicated in past findings have departed, and new independent leadership is in place.
• Enhanced Corporate Governance and Compliance: Comprehensive director training and new policies ensure ongoing compliance and operational independence.
• Ongoing Market Disclosure and Investor Communication: The Company commits to keeping the market and shareholders promptly informed of all material developments.

Business Operations and Resumption Progress – Full Details

Ruisen Life Service Co, Limited, a leading property management service provider in Nanjing and Jiangsu Province, has provided a comprehensive update regarding its progress towards resuming trading on the Hong Kong Stock Exchange. Despite the suspension, the Group’s business operations have continued as usual in all material aspects, underscoring resilience and stability.

Addressing Resumption Guidance: Step-by-Step Progress

1. Publication of Outstanding Financial Results & Audit Adjustments:
   • The Company has published all outstanding results, including the 2024 Interim Report, 2024 Annual Report, and 2025 Interim Report. Misstatements in previously issued 2023 statements were identified and restated, with full disclosure provided.
2. Independent Forensic Investigation:
   • An Independent Forensic Accountant (IFA) was appointed, completing two stages of investigation (November 2024 and August 2025). Findings and impacts were fully announced, and remedial actions have been implemented.
3. Management Integrity and Independence:
   • All directors involved in past deficiencies have been removed, retired, or resigned. Current management and board members have no past ties to Yincheng Group or Yincheng International, directly addressing past concerns regarding independence and governance.
   • Key appointments include Mr. Jiang as CFO and Mr. Liu as President, both external hires with no prior affiliations, improving governance and independence.
   • Regular and updated compliance training for directors and management is now mandatory, with policies to ensure ongoing education.
4. Internal Control Enhancement:
   • An independent professional adviser reviewed internal controls, with key findings and recommendations disclosed. All remedial measures have been implemented, and the Board considers the enhanced system sufficient to meet Listing Rules obligations.
5. Sufficient Operations and Asset Base:
   • For the six months ended 30 June 2025, the Group managed 807 properties (447 non-residential, marking a 2.3% increase). The strategic focus is on expanding non-residential services for diversification and improved profitability. Residential property management decreased by 44.4% due to the exit from loss-making projects, notably around 200 old urban communities.
   • External expansion remains strong, with 94.2% of projects sourced from market participants or independent third parties.
   • Financially, revenue grew by 4.1% to RMB997 million, gross profit reached RMB151 million, and net profit was RMB57.5 million for the period. Net assets stood at RMB266.4 million as of 30 June 2025.
6. Board Diversity and Compliance:
   • With the appointment of Ms. Zhang as a non-executive director, the Company complies with diversity requirements (Rule 13.92).
7. Continuous Market Disclosure:
   • The Company has established robust mechanisms for timely and comprehensive information disclosure, keeping shareholders and the market informed of all material changes, including the resumption process and remediation progress.
8. Suitability for Continued Listing:
   • The Board asserts that with the new management, improved governance, and financial resilience, Ruisen Life Service is suitable for continued listing on the Stock Exchange.

Submission of Resumption Application & Ongoing Suspension

The Company has submitted its formal resumption application to the Stock Exchange, which is currently under review. Trading in the Company’s shares remains suspended since 28 August 2024 and will continue until further notice. The Company emphasizes its commitment to regular updates and full compliance with regulatory requirements.

Potential Price-Sensitive and Impactful Information for Shareholders

• The Company’s successful remediation of past deficiencies, publication of up-to-date financials, and implementation of new governance and control structures are critical steps towards resumption of trading and restoration of market confidence.
• The shift towards a more diversified and profitable non-residential property management portfolio, and the exit from loss-making projects, are expected to positively impact future financial performance and stability.
• All past management involved in irregularities have departed, and the new leadership brings independence and professional expertise, addressing previous regulatory and investor concerns.
• Ongoing compliance with disclosure and board diversity requirements reduces regulatory risk and strengthens corporate governance.
• The Company’s current financial position, with growing revenue, profitability, and strong asset base, supports its case for continued listing and future growth.

Board and Management Composition (as of 27 February 2026)

• Executive Director: Mr. Pan Xiaohu (Chairman)
• Non-Executive Directors: Mr. Yao Ning, Ms. Zhang Mingming
• Independent Non-Executive Directors: Ms. Tang Wai Ha, Mr. Li Yougen, Mr. Mao Ning

Next Steps and Investor Advisory

The Company will continue to make further announcements as required and when material developments occur. Investors are advised to exercise caution when dealing in the securities of the Company until trading resumes and the Stock Exchange’s review is complete.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult their professional advisors before making any investment decisions. The Company’s shares remain suspended and all information is subject to change pending regulatory review and further disclosures.

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