Xiamen Jihong Backs Two Serving Directors in Regulatory Probe

MT Newswires Live06-01

Xiamen Jihong (SHE:002803, HKG:2603) said it did not see any reason to doubt the integrity of two of its executive directors after receiving warning letters from a regional bureau of the China Securities Regulatory Commission over the non-disclosure of certain related-party transactions, according to a Friday filing with the Hong Kong bourse.

The letters were sent to the company, as well as serving directors Zhuang Hao and Lu Tashan and former executive director Wang Yapeng and board secretary Zhang Luping.

The firm said the non-disclosure pertained to a payment of 156 million yuan to AJT Printing and Packing FZ-LLC.

In its regulatory action, the CSRC Xiamen Regulatory Bureau imposed supervisory and administrative measures on the company requiring it to rectify the situation.

Xiamen Jihong said the violations were primarily caused by its own negligence and that its board, having reviewed the notice, did not doubt the integrity and competence of Zhuang and Lu who will continue serving as executive directors.

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