The Securities and Futures Commission (SFC) has obtained from the Court of First Instance an extension of the worldwide freezing orders against Mr Lo Kai Bong, chairman, executive director and controlling shareholder of LET Group Holdings Limited (LET) and Summit Ascent Holdings Limited (Summit Ascent), and Major Success Group Limited (Major Success) in relation to suspected corporate misconduct (Notes 1 to 4).
The freezing orders, which prohibit Lo and Major Success from removing, disposing of, dealing with or diminishing the value of their assets, whether in Hong Kong or elsewhere, up to a total value of HK$146,859,320, shall remain in force until the final determination of the SFC's proceedings under section 214 of the Securities and Futures Ordinance (SFO) or further order of the Court.
The freezing orders were obtained as part of the SFC's ongoing proceedings under section 214 of the SFO against Lo, LET, Summit Ascent and Major Success. In those proceedings, the SFC seeks, among other remedies, orders to protect the interests of independent shareholders of LET and Summit Ascent, including a share repurchase order. The SFC also seeks the appointment of a receiver and/or manager over certain assets to facilitate the implementation of any relief that may ultimately be granted by the Court.
In its decision, the Court considered a restructuring carried out in February 2026 pursuant to which certain assets of LET and Summit Ascent, including interests in land parcels in Japan, were transferred to Major Success at Lo's direction. The Court found that the restructuring, which was undertaken for Lo's personal benefit, had the effect of placing those assets beyond the reach of reliefs sought by the SFC in the section 214 proceedings. The Court was satisfied that there was a real risk of asset dissipation and that the freezing orders should continue.
The Court originally granted the orders on 11 June 2026. Following the substantive hearing on 26 August 2026, on 11 September 2026, the Court ruled that the freezing orders should continue. It also ordered Lo and Major Success to pay the SFC's costs of the application to extend the orders.
The SFC’s Executive Director of Enforcement, Mr Michael Duignan, said: “The SFC welcomes the Court's decision to continue the freezing orders. Preserving assets is essential to ensuring that effective remedies remain available for investors should the Court ultimately grant the relief sought in these proceedings. The SFC will continue to take decisive action to prevent the dissipation of assets and to protect the interests of investors and uphold the integrity of Hong Kong's markets.”
The trial for the SFC’s section 214 proceedings will begin on 20 September 2027.
Notes:
- The shares of LET and Summit Ascent were listed on the Main Board of The Stock Exchange of Hong Kong Limited on 22 February 2007 and 10 January 1994 respectively and delisted on 1 September 2025. Summit Ascent is a subsidiary of LET, with 69.66% of its shares being indirectly held by LET. At all material times, LET and its subsidiaries, including Summit Ascent, were principally engaged in the development and operation of a resort in the Philippines; the operation of a hotel and gaming business in Russia; property development in Japan; and the management and operation of malls in Chinese Mainland.
- The SFC commenced proceedings under section 214 of the SFO in September 2024 against Lo, LET and Summit Ascent. For further details, please refer to the SFC's press release dated 27 September 2024.
- As Lo is the sole shareholder and a director of Major Success, a company incorporated in the British Virgin Islands, its assets may be beneficially owned or controlled by Lo and therefore available to satisfy any judgment debt obtained against him. On 11 June 2026, the Court of First Instance granted the SFC worldwide freezing orders against Lo and Major Success under the Chabra jurisdiction. For further details, please refer to the SFC’s press release dated 25 June 2026.
- The judgment is available on the Judiciary’s website (Case No. HCMP 1811/2024).
