To The Moon

Three listed companies have issued announcements confirming that their independent director is under investigation.

On the evening of October 8, Zhejiang Orient, Eastcompeace, and Liziyuan successively published announcements stating that the companies had recently learned that independent director Xiao Zuoping is suspected of serious disciplinary and legal violations and is currently undergoing disciplinary review and supervisory investigation. Based on preliminary understanding, the case involving Xiao Zuoping is unrelated to the companies.

On September 30, the website of the Huzhou Municipal Commission for Discipline Inspection and Supervisory Commission released information stating that Xiao Zuoping, former Deputy Party Secretary and Dean of the School of Accounting at Hangzhou Dianzi University, is suspected of serious disciplinary and legal violations, has voluntarily surrendered, and is currently undergoing disciplinary review by the Discipline Inspection Commission of Hangzhou Dianzi University and supervisory investigation by the Huzhou Municipal Supervisory Commission.

Public information shows that Xiao Zuoping was born in 1975 and is a professor and doctoral supervisor at the School of Accounting at Hangzhou Dianzi University, a non-practicing member of the Chinese Institute of Certified Public Accountants (CPA), a recipient of the Ministry of Education's "New Century Excellent Talents Support Program," a "National Accounting Leading Talent" of the Ministry of Finance, and an outstanding expert with significant contributions in Sichuan Province.

Xiao Zuoping graduated from Xiamen University in July 2004 with a doctoral degree in Management (Finance). From April 2005 to April 2007, he conducted postdoctoral research in finance at Tsinghua University, and in July 2006 was exceptionally promoted to professor at Southwest Jiaotong University. From April 2007 to October 2018, he served as Head of the Department of Accounting at Southwest Jiaotong University, Professor of Accounting, and Doctoral Supervisor. From October 2018 to present, he has been a professor and doctoral supervisor at the School of Accounting at Hangzhou Dianzi University.

Since October 2020, Xiao Zuoping has served as an independent director of Zhejiang Orient, currently serving as an independent director of the company's Tenth Board of Directors and as Chairman of the Board's Audit Committee, a member of the Remuneration and Assessment Committee, and a member of the company's Risk Control Committee. Since July 2023, Xiao Zuoping has served as an independent director of Eastcompeace, currently serving as an independent director of the company's Eighth Board of Directors and as Chairman of the Board's Audit Committee, a member of the Remuneration and Assessment Committee, a member of the Nomination Committee, and a member of the Strategy Committee. Since July 2024, Xiao Zuoping has served as an independent director of Liziyuan, currently serving as an independent director of the company's Fourth Board of Directors and as Chairman of the Board's Audit Committee and a member of the Nomination Committee.

In 2025, the pre-tax compensation Xiao Zuoping received from Zhejiang Orient, Eastcompeace, and Liziyuan was 150,000 yuan, 80,000 yuan, and 70,000 yuan, respectively.

In the latest announcements, all three listed companies stated that apart from the aforementioned positions, Xiao Zuoping does not hold any other positions at the companies and does not participate in the companies' daily production and operation management. His inability to perform his duties will not have a material impact on the companies' operational management activities. Other directors and senior management personnel of the companies are performing their duties normally, and production and operation management remain normal.

Given that Xiao Zuoping can no longer perform his duties as an independent director, the companies will expedite the selection of new independent directors in accordance with relevant laws and regulations and the provisions of the Articles of Association.

As of the close of trading on October 8, Zhejiang Orient shares were priced at 4.60 yuan per share with a total market value of 15.711 billion yuan; Eastcompeace shares were priced at 13.62 yuan per share with a total market value of 7.905 billion yuan; and Liziyuan shares were priced at 9.14 yuan per share with a total market value of 3.543 billion yuan.