Shenzhen developer Hydoo fires chairman, appoints brother

PUBLISHED : Monday, 25 August, 2014, 10:05am
UPDATED : Monday, 25 August, 2014, 10:05am

Hydoo International, a Shenzhen-based developer of commercial trade and logistics centres, has fired chairman Wong Choihing a month after it was confirmed that he was being investigated by the mainland authorities.

The company said on Monday morning its board had agreed to remove Wong from all his positions at the firm, including executive director, chairman and membership of its remuneration and nomination committees. The announcement took effect from Monday.

Wong has been replaced by his younger brother, Wang Jianli, who did not have any previous management role within the group. Wang is a member of the Jiangxi Chinese People’s Political Consultative Conference.

The company on Monday said it had made a net profit of 221 million yuan (HK$278.45 million) in the first half of the year, compared with a loss of 193 million yuan a year earlier.

Hydoo shares jumped 2.7 per cent to trade at HK$1.93 at 9.45 am, compared with its listing price of HK$2.15 in October.

On July 14, the company said it had lost contact with Wong “for over two weeks” and a week later it said Wong was “assisting the authorities in providing certain information”. It had not been confirmed whether the “information” required by the authorities was related to Hydoo’s business operations, the company said.

Wong, a former long-haul truck driver, led Hydoo to a listing in Hong Kong in October. In February, he became a billionaire as the firm’s shares jumped as much as 70 per cent from its listing.

Wong controls 51.8 per cent of Hydoo, including a 51.6 per cent stake jointly owned by him and his relatives, according to the Hong Kong stock exchange website. Hony Capital, a mainland private equity firm backed by Legend Holdings, owns a 14.9 per cent stake, the website said.