Hong Kong-listed Wuxi Life International Holdings Group Limited reported that all eight previously identified internal-control deficiencies—one high-risk and seven medium-risk—have been rectified following an extensive review by SHINEWING Risk Services Limited (Shinewing). The Board and Audit Committee state that risks have now been reduced to “a reasonably acceptable level”.
Shinewing’s engagement, first disclosed with the Company’s June 2025 results, covered contract approval, revenue recognition, receivables, accounting records, inventory, financial reporting, invoice administration, and seal/signatory controls. Key findings and corresponding remedial actions include:
1. Staff awareness: Updated policies were circulated, mandatory annual and induction training instituted, and attendance logs retained. Monthly sessions began in December 2025 and continue through 2026.
2. Contract governance: All contracts now require sequential approvals—legal counsel, finance, administration, and the Chairman—via the DingTalk system. Digital records have replaced prior informal WeChat approvals, and seal use is centrally controlled.
3. Seal usage: Formalised seal-management procedures designate custodians for company, contract, financial and invoice chops. A digital application process and lending registers have been put in place.
4. Financial closing: A monthly closing checklist, quarterly ageing analyses, detailed intercompany ledgers and a related-party registry have been adopted. Finance and sales teams collaborate on reconciliations, with oversight from the CFO and newly appointed Finance Manager (March 2026).
5. Voucher processing: System access rights now prevent self-review of vouchers. Accounting staff prepare entries; approvals rest with the Finance Manager. Third-party bookkeeping services were fully terminated after December 2025, with new agency-management standards introduced.
6. Invoice control: All invoice requests are lodged and approved through the company system, supported by contracts and settlement data. Cashiers issue invoices only after multi-level approval.
7. Warehouse operations: Subsidiary Zhejiang Cangji Supply Chain Management signed renewed warehouse agreements effective through December 2026, implemented system-based inventory controls, and limited warehouse access to authorised personnel.
8. Revenue recognition: Segment-specific policies now align with applicable accounting standards. Product sales, advertising/e-commerce point redemptions and merchant-platform commissions each have defined pricing rules, documentation, and CFO review. Policies will be re-evaluated annually; finance staff received targeted training in April 2026.
Shinewing’s follow-up review found no remaining material gaps. The Board confirmed adequacy of the new controls and noted that compliance training, systematic approval workflows, and periodic policy reviews will continue.
The announcement was approved by Chairman Liu Guanzhou and published on 6 October 2026.