CHINA MEDICAL TECHNOLOGIES, INC AND OTHERS v. WU XIAODONG AND OTHERS

CHINA MEDICAL TECHNOLOGIES, INC AND OTHERS v. WU XIAODONG AND OTHERS

The court found on the balance of probabilities that Wu, Tsang and Zhu orchestrated sham FISH and SPR acquisitions, procured forged documentation and concealed related‑party control of Supreme Well; they fraudulently breached fiduciary duties, conspired to misappropriate CMED funds and knowingly carried on business for a fraudulent purpose; substantial sums traced to Supreme Well and onward to nominee entities and individuals were received dishonestly or with unconscionable knowledge, entitling CMED and CMED Tech to equitable compensation, damages, restitution and proprietary remedies against those recipients; Dr Chen was not party to the fraud but is liable in unjust enrichment for...

Citation
[2026] HKCFI 276
Parties
1st Plaintiff (in Liquidation): China Medical Technologies, Inc.; 2nd Plaintiff: CMED Technologies Ltd; 3rd Plaintiffs (joint and Several Liquidators): Cosimo Borrelli and Chi Lai Man Jocelyn; 1st Defendant (former Chairman/ceo): Wu Xiaodong; 2nd Defendant (former Cfo/director): Samson Tsang Tak Yung; 3rd Defendant (former Cto): Chen Zhong; 4th Defendant (vp Business Development, Compliance Officer): Zhu Feng (Charles); 5th Defendant (associate, Nominee Controller): Chong Wing Hip; 6th Defendant (received and Routed Funds; Deceased; Estate Represented): Hao Xiaoquing Allan; 7th Defendant (bvi Entity, Counterparty Vehicle): Supreme Well Investments Limited; 8th Defendant (bvi Entity): East Hope International Limited; 9th Defendant (hk Entity): Cheer Link International Limited; 10th Defendant (bvi Entity): Innovative Technology Investment Limited; 11th Defendant (bvi Entity; Dr Chen Controlled): Dynamic Sense Limited; 12th Defendant (bvi Entity): Time Region Holdings Limited; 13th Defendant (recipient; Trustee; Former Director): Bi Xiaoqiong; 14th Defendant (bvi Entity): Worldpro Investments Limited; 15th Defendant (bvi Entity): Long Chart Investments Limited; 16th Defendant (bvi Entity): Chavis Investments Limited; 17th Defendant (bvi Entity): Sinowell International Investment Limited; 18th Defendant (bvi Entity): Chengxuan International Ltd; 19th Defendant (bvi Entity): Weixiao Medical Technology Limited; 20th Defendant (singapore Entity): WB International Holding Pte Ltd; 21st Defendant (hk Entity, Dissolved): Max Prosper Enterprises Limited; 22nd Defendant (daughter of 13th Defendant): Jun Yun Bi; 23rd Defendant (bvi Entity): Global Flash Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 January 2026
Case Number
HCA3391/2016
Procedural Posture
Civil — Company/fraud Litigation (directors’ Duties, Tracing and Restitution) / Judgment Following Trial (court of First Instance)
Outcome
Judgment for the Plaintiffs in large part. Court held Wu, Tsang and Zhu liable for fraudulent breaches of fiduciary duties, unlawful means conspiracy and fraudulent trading; Supreme Well and multiple nominee companies and individuals held liable for dishonest assistance, knowing receipt and/or unjust enrichment in...
Legal Topics
Directors' Duties and Proper Purpose, Dishonest Assistance, Knowing Receipt, Unjust Enrichment, Unlawful Means Conspiracy, Fraudulent Trading S.275 CWUMPO, Tracing of Proceeds, Limitation and Discovery
Source Language
EN
Company Law Equity and Fiduciary Duties Trusts Commercial Fraud Restitution Criminally Relevant Statutory Insolvency (fraudulent Trading) Limitation Law Directors' Duties and Proper Purpose +7 more

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Parties

China Medical Technologies, Inc.

1st Plaintiff (in Liquidation)

CMED Technologies Ltd

2nd Plaintiff

Cosimo Borrelli and Chi Lai Man Jocelyn

3rd Plaintiffs (joint and Several Liquidators)

Wu Xiaodong

1st Defendant (former Chairman/ceo)

Samson Tsang Tak Yung

2nd Defendant (former Cfo/director)

Chen Zhong

3rd Defendant (former Cto)

Zhu Feng (Charles)

4th Defendant (vp Business Development, Compliance Officer)

Chong Wing Hip

5th Defendant (associate, Nominee Controller)

Hao Xiaoquing Allan

6th Defendant (received and Routed Funds; Deceased; Estate Represented)

Supreme Well Investments Limited

7th Defendant (bvi Entity, Counterparty Vehicle)

East Hope International Limited

8th Defendant (bvi Entity)

Cheer Link International Limited

9th Defendant (hk Entity)

Innovative Technology Investment Limited

10th Defendant (bvi Entity)

Dynamic Sense Limited

11th Defendant (bvi Entity; Dr Chen Controlled)

Time Region Holdings Limited

12th Defendant (bvi Entity)

Bi Xiaoqiong

13th Defendant (recipient; Trustee; Former Director)

Worldpro Investments Limited

14th Defendant (bvi Entity)

Long Chart Investments Limited

15th Defendant (bvi Entity)

Chavis Investments Limited

16th Defendant (bvi Entity)

Sinowell International Investment Limited

17th Defendant (bvi Entity)

Chengxuan International Ltd

18th Defendant (bvi Entity)

Weixiao Medical Technology Limited

19th Defendant (bvi Entity)

WB International Holding Pte Ltd

20th Defendant (singapore Entity)

Max Prosper Enterprises Limited

21st Defendant (hk Entity, Dissolved)

Jun Yun Bi

22nd Defendant (daughter of 13th Defendant)

Global Flash Limited

23rd Defendant (bvi Entity)

Procedural Posture

Civil — Company/fraud Litigation (directors’ Duties, Tracing and Restitution) / Judgment Following Trial (court of First Instance)

Legal Issues

  1. 1 What duties were owed by senior officers and whether they were breached
  2. 2 Whether funds paid for FISH and SPR acquisitions were misappropriated
  3. 3 Whether there was an unlawful means conspiracy to injure CMED/CMED Tech

Ratio Decidendi

The court found on the balance of probabilities that Wu, Tsang and Zhu orchestrated sham FISH and SPR acquisitions, procured forged documentation and concealed related‑party control of Supreme Well; they fraudulently breached fiduciary duties, conspired to misappropriate CMED funds and knowingly carried on business for a fraudulent purpose; substantial sums traced to Supreme Well and onward to nominee entities and individuals were received dishonestly or with unconscionable knowledge, entitling CMED and CMED Tech to equitable compensation, damages, restitution and proprietary remedies against those recipients; Dr Chen was not party to the fraud but is liable in unjust enrichment for...

Court Disposition

Judgment for the Plaintiffs in large part. Court held Wu, Tsang and Zhu liable for fraudulent breaches of fiduciary duties, unlawful means conspiracy and fraudulent trading; Supreme Well and multiple nominee companies and individuals held liable for dishonest assistance, knowing receipt and/or unjust enrichment in...

Orders

  • Equitable compensation and damages awarded in favour of the Plaintiffs against Mr Wu, Mr Tsang and Mr Zhu for misappropriation totalling USD 521800000
  • Damages for unlawful means conspiracy awarded against Mr Wu, Mr Tsang, Mr Zhu and Mr Chong for USD 521800000 each (judgment for plaintiffs on conspiracy claim as pleaded)