Core Viewpoint - The Hong Kong Stock Exchange has initiated disciplinary actions against New Focus Auto Technology Holdings Limited and seven of its directors due to multiple violations of listing rules from 2018 to 2023, highlighting severe internal control deficiencies [1][2][3] Summary by Sections Disciplinary Actions - The Hong Kong Stock Exchange criticized New Focus Auto Technology Holdings Limited and issued a statement of director unsuitability against former independent directors Zhang Xiaoya and Shi Jing, while also reprimanding current executive director and chairman Tong Fei and five former directors [1] - The company and the related directors have agreed to settle and accept penalties [1] Violations and Transactions - From September 2018 to June 2019, former director Du Jinglei facilitated multiple loans and equity transfer transactions totaling approximately 176 million RMB without board approval, with one transaction being disclosed only in October 2022 [1] - Between December 2022 and January 2023, Tong Fei prompted a subsidiary to issue two loans totaling about 477 million RMB, failing to comply with disclosure and shareholder approval requirements [2] - In September 2024, Tong Fei initiated the establishment of a new company in China involving himself and an independent third party, which constituted a disclosable transaction and related party transaction, without timely reporting to the board [2] Internal Control Deficiencies - The company exhibited severe deficiencies in internal controls during the aforementioned transactions, leading to violations of listing rules [3] - The Exchange ruled that the company violated listing rules, and the involved directors (excluding Shi Jing) failed to ensure effective internal controls and compliance with listing rules [3]
港交所对新焦点汽车技术控股有限公司及七名董事采取纪律行动