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Exchange’s Disciplinary Action against Seven Former Directors of Huiyin Holdings Group Limited (Stock Code: 1178)

Regulatory
17 May 2021

香港联合交易所有限公司
(香港交易及结算所有限公司全资附属公司)
THE STOCK EXCHANGE OF HONG KONG LIMITED
(A wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited)

 

The Listing Committee of The Stock Exchange of Hong Kong Limited

CENSURES:

(1) Mr Chan Shun Yee, former executive director;
(2) Mr Liu Min, former executive director; 
(3) Mr Xu Zhifeng, former executive director;
(4) Ms Zhu Yanzhou, former independent non-executive director;
(5) Mr Wong Tat Yan Paul, former independent non-executive director;

CRITICISES:

(6) Mr Zhou Guohua, former executive director; and
(7) Mr Su Rujia, former independent non-executive director;

AND DIRECTS:

All the above former directors to undergo training on Listing Rule compliance.

In 2016, the Company sought to acquire two other companies. However, issues arose in respect of the acquisition, with the result that the Company could not confirm whether it had in fact been completed. The directors above had failed to establish adequate internal controls in the Company to ensure that relevant documentation in respect of the acquisition was obtained or retained. This led to a full impairment in respect of the acquisition of over $100 million, and a significant loss for the Company. 

 

Key messages:

Directors have clear duties and responsibilities to ensure that appropriate and effective internal control systems are established and maintained. 
 
A copy of the Statement of Disciplinary Action is available on the HKEX website.

 

 

Ends

Updated 17 May 2021