Just listed and plummeted 64%! EY is monitoring Youlesai's suspicious transfer of 73 million.

Why did the transfer of 73 million yuan by AI Youlesai trigger Ernst & Young’s investigation on the eve of its listing?

Less than a month after going public, the company was suspended from trading. Suzhou Youlesai Shared Services Co., Ltd. (02649.HK, hereinafter referred to as “Youlesai” ), was subject to audit scrutiny due to a 73 million yuan transfer.

Auditor Ernst & Young (, hereinafter “EY” ), requested an independent investigation, coupled with delayed disclosure of performance, causing this “first auto cycle packaging stock” to quickly face compliance review pressure.

01

Suspicious transfer of 73 million yuan

On the afternoon of March 30, Youlesai announced that its H-shares would suspend trading from 1 p.m. that day.

Later that afternoon, Youlesai further stated that the suspension was to wait for the release of an announcement containing inside information about the company.

On the morning of March 31, Youlesai held its first extraordinary general meeting for 2026, approving the appointment of EY as the company’s first post-listing auditor (.

EY has been providing audit services throughout Youlesai’s application for listing on the Hong Kong Stock Exchange and is familiar with its financials and affairs.

However, shortly after announcing the change of auditor, Youlesai released a major inside information.

Youlesai was scheduled to hold a board meeting on March 31 to review the 2025 full-year results, but due to the inability to publish the results on time, the meeting was postponed.

The direct cause of the postponement points to a suspicious transfer that occurred on the eve of listing.

According to the announcement, between February 24 and 27, 2026, Youlesai transferred about 73 million yuan to an unnamed entity.

Based on this, the company needed extra time to provide EY with information about its transaction agreements with that entity to prepare the full-year results.

EY has formally requested the audit committee under Youlesai’s board of directors, with external professional involvement, to conduct an independent investigation into the details of the above matter and whether the related transactions comply with listing rules.

It should be noted that, before the official listing, Youlesai conducted its IPO from February 27 to March 4, 2026.

February 27 was not only the start date of the IPO but also the date of the suspicious transfer. The overlap in timing makes the fund flow particularly sensitive.

According to industry practice, if an event significantly affecting key financial indicators occurs before a company’s listing, it should be disclosed in the prospectus.

Although the final feasible date for Youlesai’s prospectus was February 17, 2026, and it might not have been able to include the related transaction, the company could have disclosed it through a supplementary announcement.

Instead of waiting until after listing to explain the transfer at the request of the auditor, as is now the case.

An industry insider who has participated in the Hong Kong Stock Exchange Listing Committee told Ming Pao that Youlesai’s situation “may be related to an earlier assessment that the disclosure threshold was not met.”

For EY, the 73 million yuan transfer is not a trivial matter.

This amount exceeds the expected IPO expenses of HKD 48.18 million and even surpasses its adjusted net profit for 2024 by HKD 10.17M.

In the eyes of auditors, such transactions are enough to constitute key audit matters, requiring sufficient evidence to support their reasonableness and compliance.

Currently, Youlesai is cooperating with EY to quickly complete the documentation and maintain communication.

However, the company has not provided a clear timetable for the release of 2025 performance data or the resumption of trading.

02

Listing immediately underperforming

Founded in 2016 and headquartered in Suzhou Industrial Park, Youlesai is a provider of cycle packaging services, mainly serving auto parts manufacturers and vehicle manufacturers.

The company mainly offers shared operations, managing pallets, crates, or containers for clients, handling storage, distribution, returns, cleaning, and maintenance of cycle packaging.

According to Frost & Sullivan data, based on 2024 revenue, Youlesai is the second-largest provider of cycle packaging services in China, with a market share of 1.5%.

In the niche of auto shared operation services, Youlesai holds an 8.2% market share, ranking first domestically.

Financially, the company’s revenue has steadily grown, with approximately 648 million yuan, 794 million yuan, and 838 million yuan in 2022, 2023, and 2024 respectively.

During the same period, net profits were approximately 31.21 million yuan, 64.15 million yuan, and 50.74 million yuan.

In the first eight months of 2025, it achieved revenue of 533 million yuan and net profit of 26.89 million yuan.

On March 9, Youlesai listed on the Hong Kong Stock Exchange, becoming the “first auto cycle packaging stock,” with an issue price of HKD 11, raising a net amount of about HKD 176 million.

Notably, the sole sponsor for this IPO was CITIC Construction Investment International, and the auditor was EY.

Youlesai’s IPO did not involve cornerstone investors. It issued 20.34M shares globally, with 2.03M shares in Hong Kong public offering and 18.3M in international offering.

The IPO results showed that the public offering was oversubscribed by 5,297.23 times, with a very low 0.04% allotment rate, while the international offering was oversubscribed 4.2 times.

On the first day of trading, Youlesai opened below the issue price, at HKD 7.5. By the close, its stock price had fallen to HKD 6.2, a 43.6% drop in one day.

Since then, its stock price continued to weaken, and before suspension on March 30, it traded at HKD 3.9, about 64.5% below the issue price, with a total market value shrunk to approximately HKD 352 million.

Interestingly, besides the undisclosed suspicious transfer, Youlesai also made a disclosure error before listing.

On March 11, after market close, the company corrected the statement in its March 6 distribution result announcement, changing “200 shares per lot” to “500 shares per lot.”

Although a minor issue, such a mistake in a listed company’s disclosure can easily attract investor attention and discussion.

Post-listing, the ownership structure shows that founder, executive director, and chairman Sun Yan’an and his controlling entities hold about 43.63%, making them the controlling shareholders.

Other major shareholders include Sun Yan’an’s niece Wang Yue and Suzhou Guofa Group, holding 7.03% and 8.07%, respectively.

03

Conclusion

The suspension of Youlesai has brought the suspicious transfer amount, exceeding the company’s net profit, under intense scrutiny.

The results of the independent investigation, the timing of the 2025 performance disclosure, and the resumption plan are key variables moving forward.

If the transaction is confirmed to be compliant, it may help restore confidence.

Conversely, the company could face stricter regulatory pressure, and its future in the capital market could be affected.