The SC found that HB Global had furnished false statements to Bursa Malaysia in its annual reports for the financial years ended 31 December 2017, 2018, 2019 and 2020. This is related to the shareholdings in four companies, namely Shandong Henbao Foodstuffs Co. Ltd, Juxian Hengbao Farming Co. Ltd, Juxian Wan Hui Food Co. Ltd and Juxian Houz Best Food Co. Ltd. This conduct constituted a breach of section 369(b)(B) of the CMSA.

As a result of these false disclosures, HB Global's financial statements erroneously included the financial results of entities that were not part of the HB Global group during the relevant period.

On 13 January and 14 January 2026, the SC reprimanded HB Global and Shen Hengbao respectively for four breaches each of section 369(b)(B) of the CMSA. Separately, the SC imposed a penalty of RM1.26 million on Shen Hengbao for knowingly causing HB Global to furnish false statements to Bursa Malaysia in relation to the four Annual Reports.

HB Global and Shen Hengbao applied for a review of the SC’s decision under section 364 of the CMSA. On 29 October 2026, the SC dismissed the application and affirmed its findings as well as the sanctions imposed.

The SC views this misconduct as a serious breach that compromised the integrity and reliability of information available to investors and the market.