The Stock Exchange of Hong Kong has taken disciplinary action against Jilin Province Huinan Changlong Bio-pharmacy Company Limited and some of its directors for non-compliance with disclosure and shareholder approval requirements for 62 out of 91 subscriptions for wealth management products made between 2018 and 2020. The Exchange has censured the company and imposed a director unsuitability statement against Mr Gao Yong Cai, a former independent non-executive director who was found unsuitable to occupy a position as director or within senior management of the company or any of its subsidiaries. In addition, several executive and independent non-executive directors have been criticized for their failure to ensure an effective internal control framework and compliance with the GEM Listing Rules. These include Mr Zhang Hong, the executive director, chairman, and compliance officer, along with Mr Wu Guo Wen, Mr Xu Xiang Fu, Mr Zhang Xiao Guang, Mr Zhao Bao Gang, Mr Zhang Yi, Mr Gao Qi Pin, and Ms Tian Jie. As part of the disciplinary action, the Exchange has directed a review of the company’s internal controls to ensure compliance with Chapter 19 of the GEM Listing Rules. Additionally, each of the directors, except for Mr Gao Yong Cai, will be required to attend training. The Exchange has noted that the company has a history of non-compliance of this nature and had been formally warned in 2018 for earlier breaches. Despite committing to remedial action, the company continued to breach disclosure and shareholder approval requirements, indicating that the measures announced in 2018 were either not adopted or ineffective.
resource: https://www.hkex.com.hk/News/Regulatory-Announcements/2023/230613news?sc_lang=en