Fu Shou Yuan (01448.HK), known as the "first funeral stock," recently issued a supplementary announcement providing further details on the main factual grounds for removing Wang Jisheng from his position as an executive director, as well as the differences of opinion between the two sides, following the board's written notice dated August 28 to strip him of the role. This marks the first time the company has publicly explained the specific disputes behind the removal since it initially published the findings of an independent forensic investigation on September 16.

The announcement disclosed that the board informed Wang Jisheng of three grounds for his removal. First, a competent authority has issued a notice to launch a formal investigation into relevant events, and the matters under investigation may involve Wang Jisheng himself. Second, the independent forensic investigation identified a number of questionable transactions involving Wang Jisheng, some of which lacked supporting documents to prove the purpose of the funds or their commercial substance; the investigation showed that some transactions involved Wang Jisheng, or that there were circumstances in which he directly instructed or directed relevant personnel to arrange the transactions. Despite repeated invitations, Wang Jisheng did not accept an interview as part of the investigation process. Third, this relates to the information and facts about the questionable transactions that the directors had in their possession at the relevant times.

According to the earlier announcement on September 16, the investigation originated from an allegation posted on an online forum in July 2025, which claimed that a former executive director of the company, together with certain management personnel of a subsidiary, violated compliance rules to seek personal gain during project operations. In February 2026, the company's audit committee and compliance committee appointed Ernst & Young (China) Enterprise Consulting Co., Ltd. to conduct a review. On March 19, Fu Shou Yuan established a special investigation committee composed of all independent non-executive directors. Because of the questionable transactions, the company failed to publish its 2025 annual results and annual report on time, and its shares were suspended from trading on the Stock Exchange from 9:00 a.m. on March 20. Following the independent forensic investigation, 69 questionable transactions were ultimately confirmed, and after eliminating duplicate counts, 64 were verified, involving a total amount of 22.7674 million yuan. Among them, questionable transactions with traceable fund flows involving Wang Jisheng totaled 8.2669 million yuan, including about 6.6569 million yuan in cash withdrawals, 810,000 yuan in OK cards, and 800,000 yuan in general manager expenses and official cards.

The announcement showed that Wang Jisheng does not agree with the relevant facts and the board's views. He has filed complaints and expressed concerns with regulators and the board regarding matters including the procedure for selecting and appointing Ernst & Young Consulting as the investigating institution, the scope and methods adopted by Ernst & Young Consulting during the investigation, the preliminary investigation results, the accuracy of the company's previous announcements, and whether other directors or senior executives of the company acted appropriately. Fu Shou Yuan said it has assessed the above allegations and believes they have no substantive basis. After seeking external legal advice, the board has significant reservations and concerns about the appropriateness of Wang Jisheng continuing as an executive director of the company, and believes that the removal is in the overall best interests of the company and its shareholders.

According to information on Fu Shou Yuan's official website, Wang Jisheng participated in the establishment of Fu Shou Yuan in 1994 and has served as general manager since then, managing Fu Shou Yuan for about 30 years. According to the company's 2023 interim report, he directly held about 0.02% of the shares, and also held about 4.16% of the company's issued share capital through Peaceful Field Limited, bringing the total to about 4.18% of the company's equity, making him one of the company's major shareholders. Wang Jisheng's removal was not completed in one step. He was first removed from the position of company president on December 12, 2025, retaining only the roles of executive director and member of the nomination committee; after being removed from the post of executive director in August 2026, he also ceased to be a member of the nomination committee.

Fu Shou Yuan is a leading domestic funeral and life technology service enterprise. In the first half of 2025, the company achieved operating revenue of 611 million yuan, of which cemetery services accounted for 78.1% of revenue, with the Shanghai region contributing about 40% of revenue. However, in the same period the company recorded its first loss since listing, with a net loss of about 260 million yuan, compared with net profit of nearly 300 million yuan a year earlier. At present, the company's 2025 annual results and 2026 interim results have not yet been finalized, the relevant annual report and interim report have not yet been dispatched, and the annual general meeting will be further postponed. The company's shares have been continuously suspended from trading since March 20, 2026, and will remain suspended until further notice.

Disclaimer: Original articles in this account enjoy copyright protection, and unauthorized reproduction is prohibited. The content is for learning and sharing only and does not constitute investment advice. All information and data come from the internet and public information. If there is any infringement, please contact us for handling.