CLSA Premium Receives Notification From The HK Stock Exchange Regarding The Suspension Of Its Shares

Hong Kong-centric CLSA Premium Ltd, formerly known as KVB Kunlun, announced today that it has received a letter from the Stock Exchange informing it of its decision that the company has failed to maintain a sufficient level of operations and assets of sufficient value as required by Rule 13.24, and that trading in the Company's shares will be suspended on 3 February 2023 under Rule 6.01(3) of the Listing Rules unless the Company applies for a review.

Since the listing and sale of Chinese and Japanese medicines products and healthcare products in the PRC and Hong Kong in May 2022, the Stock Exchange has considered the broker operates the business of providing leveraged foreign exchange, commodities, and index trading services in Australia, New Zealand, and Hong Kong, each of which has not been demonstrated to be of substance, viable, and sustainable.

Since the deterioration of the company in 2019, none of the business strategies have been successful in increasing the size and profitability of the Margin Dealing Business. The operation in New Zealand and Australia ended/was terminated in 2022. The Margin Dealing Firm's last enterprise - a bullion dealing business in Hong Kong - has a limited operating history and a small operating size.

In addition, the Trading Business has a relatively short working history and is a small size business.

The Company's total assets and net assets were HK$284 million and HK$246 million, respectively, as of 30 June 2022. Its entire assets were mostly cash and bank balances totaling HK$221 million. As previously stated, the Company did not seem to have adequate assets to operate a successful and sustainable company.

The Stock Exchange is not convinced that the Company has enough assets to satisfy Rule 13.24.

According to the Letter, the Company must re-comply with Rule 13.24 of the Listing Rules, follow any resuming instructions issued by the Stock Exchange, and be in full compliance with the Listing Rules to the satisfaction of the Stock Exchange before trading the Company's shares may resume.

The Stock Exchange may terminate the listing of the Company's shares under Rule 6.01A(1) of the Listing Rules if trading is halted for a continuous period of 18 months.

The Company is now studying the Letter and debating it internally and with its expert advisors. Shareholders and prospective investors are cautioned that the Company has yet to decide whether or not to seek a review of the Decision, and the result of any review if conducted, is unknown.

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