Core Viewpoint - The Hong Kong Stock Exchange has taken disciplinary action against Oriental Finance Holdings (08001) and six former directors due to severe mismanagement and failure to protect the company's assets, leading to significant impairment losses [1][2] Group 1: Disciplinary Actions - The Hong Kong Stock Exchange condemned Oriental Finance Holdings and issued disqualification statements against former executive director Ms. Li Yazhen, and independent non-executive directors Mr. Xiao Jianwei and Ms. Chen Minyi, deeming them unsuitable to serve as directors or senior management [1] - A statement regarding the damage to investor rights was issued against former independent non-executive director Mr. Deng Zongwei, indicating that his continued presence on the board would harm investor interests [1] Group 2: Loan Management Issues - Between 2015 and 2022, Oriental Finance Holdings granted a total of HKD 378 million (including interest) in multiple loans to individual clients, extending loan terms without ensuring proper registration of collateral properties, which would allow for enforcement in case of borrower default [2] - The company's auditors had warned as early as 2018 that the lack of registration of loan collateral would significantly reduce its enforceability, yet the company and its directors failed to take adequate measures to protect its assets, continuing to extend loan terms despite borrower defaults [2] Group 3: Impairment Losses - All borrowers ultimately defaulted, leading the company to recognize an impairment provision of HKD 145 million for the fiscal year 2022/23, with total confirmed impairment losses amounting to HKD 181 million as of March 31, 2024 [2] - Internal reviews revealed multiple deficiencies in internal controls, resulting in inadequate due diligence, failure to register loan collateral, and inability to respond effectively to loan defaults, ultimately compromising the company's asset protection [2]
香港联交所对东方汇财证券(08001)及六名前董事采取纪律行动