Articles: Connected transactions

Sanction of Link (8237) and 2 ex-Executive Directors
SEHK, 16-May-2024
Ngan Iek and Siew Pek To, who are brothers-in-law, used most of a bond issue proceeds to repay loans from Ngan rather than the stated purpose of redeeming old bonds, which then defaulted.
SFC obtains court order to disqualify Mr Chan Wai Shing, ex-CFO of Fuguiniao (ex-1819) for 2 yearsJudgment
SFC, 6-Feb-2024
Huge amounts of the group's money was pledged to support loans to the controlling shareholder in undisclosed connected transactions, resulting in forfeiture of CNY1.788bn. The stock was suspended on 1-Sep-2016 with a market value for the H-shares of HK$4.72bn and delisted in in Nov-2019.
Sanction of China Fortune (0110) and 8 directors
SEHK, 31-Oct-2023
For numerous undisclosed connected transactions.
Sanctions against China Saite (ex-0153) and 10 directors
SEHK, 24-Aug-2023
For undisclosed loans to the Chairman, amongst other things.
Crocodile (0122) minority shareholders veto HK$22m farmland purchase from controlling family
Company announcement, 27-Jul-2023
Well done! A far better use of spare cash would be to buy back shares, which trade around an 85% discount to net asset value of $1.07 per share. The deal came just months after a deep discount rights issue raised $42m.
Sanction of Lisi (0526) but not any of its directors
SEHK, 19-Jul-2023
Somehow the company managed to repeatedly break the listing rules all by itself. The Exchange sent 3 earlier private warning letters from 2014-2016, so we wonder how often they keep the dirt private rather than make the market look even worse (which it is). The Exchange is for-profit, after all.
SFC obtains disqualification orders against former directors of Luxey (8041)Judgment
SFC, 24-May-2023
Webb-site first blew the whistle about this wrong-doing back in 2012. It took the SFC until 2019 to bring this action. In our view, It was and is too little, too late.
Censure of CT Vision S.L. (0994)
SEHK, 23-May-2023
For undisclosed connected transactions and financial assistance to ex-director Jim Kan Hou Sek.
Censure of Keyne (0009) and 6 directors
SEHK, 9-May-2023
For undisclosed connected transactions involving pledging of group properties as security for bank loans to a company owned by the controlling shareholder Zhu Boheng and his mum Qian Ling Ling, who is an Executive Director.
Criticism of China New City Commercial (1321) and 4 directors
SEHK, 28-Dec-2022
Sanction of Xinyuan Property Management (1895) and 4 directors
SEHK, 5-Dec-2022
The Exchange is having trouble keeping up with this company: the directors involved in these transactions to prop up the controlling shareholder have left the board, but another announcement on 15-Nov-2022 revealed yet more problems - a bunch of time deposits pledged to support bank loans to the controlling shareholder, and the stock, which was only listed in Oct-2019, is suspended again.
Sanction of 7 current/ex-directors of Christine (1210)
SEHK, 1-Dec-2022
For propping up a company owned by the then Chairman's sister with a de facto loan.
Censure of Mingfa (0846) and sanctions on 4 directors
SEHK, 27-Jun-2022
For numerous undisclosed and unapproved connected transactions and late results.
Censure of Longrun Tea (2898) and directors
SEHK, 14-Jul-2021
For a major, undisclosed connected loan to a company controlled by the founding Chairman Mr Chiu Ka Leung and another ED Mr Jiao Shaoliang, amongst other things.
Censure/criticism of Winshine (0209) and various directors
SEHK, 12-Jul-2021
For various undisclosed tranasctions, including a loan to a company owned by the then-CEO. He and another ex-ED failed to cooperate with the SEHK investigation.
Censure/criticism of Alltronics (0833) and 10 directors
SEHK, 28-Jun-2021
For varying the terms of a connected transaction without seeking further independent shareholders' approval.
Censure of Baytacare Pharma (ex-8197), directors & supervisors
SEHK, 8-Jun-2021
For multiple undisclosed connected transactions with the Chairman and his Dad, amongst other things. We note that one of the censured INEDs is Victor Gao Zhikai, the frequent CCTV commentator. He is also an INED of E-commodities (1733) and Modern Land (China) (1107).
PYI (0498) subscribes HK$100m for CB in brokerage subsidiary of Imagi (0585)PYI announcement
Company announcement, 13-Apr-2021
Imagi and PYI are 19.08% and 28.53% owned by Oshidori (0622) but technically this is not a Connected Transaction under the Listing Rules for either company because neither is an "associate" (30% owned) by Oshidori (a connected person of both). All 3 companies are in what we call the "Chung Nam Network".
Censure of China Yu Tian (ex-8230) and 7 directors
SEHK, 30-Mar-2021
Censure/criticism of Sandmartin (0482) and various directors
SEHK, 22-Jan-2021
For undisclosed connected transactions.
Court makes orders against ex-Chairman and EDs of Minth (0425)
SFC, 7-Nov-2019
For an undisclosed connected transaction in 2008 involving a BVI company and his nephew and niece, once again demonstrating how the Stock Exchange allows related parties to hide behind offshore companies whose ownership cannot be traced.
Breach of Listing Rules: undisclosed connected transactions
Company announcement, 9-Nov-2017
Minth (0425): undisclosed connected transaction with Chairman's nephew and nieceCircular
Company announcement, 12-Jun-2009

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