The Stock Exchange of Hong Kong Limited
17 Feb 2021
CENSURES:
(1) Mr Lin Qing Xiong (Mr Lin), former executive director (ED) and Chairman of Moody Technology Holdings Limited (Company);
(2) Mr Qiu Zhi Qiang, former ED of the Company(Mr Qiu);
(3) Mr Deng Qing Hui, former ED of the Company;
CRITICISES:
(4) Mr Chan Sui Wa, former independent non-executive director (INED) and Chairman of the Audit Committee (AC) of the Company;
(5) Mr Ma Chong Qi, former INED and AC member of the Company; and
(6) Mr Yu Yu Bin, former INED and AC member of the Company. (the directors identified at (1) to (6) above are collectively referred to as the Relevant Directors.)
STATES:
By reasons of the wilful failure of Mr Qiu to discharge his undertaking to cooperate with the Exchange’s investigation and Mr Lin to discharge his obligations under the Listing Rules and his Director’s Undertaking to the Exchange (in the form of Appendix 5B to the Listing Rules), had Mr Qiu and Mr Lin remained on the board of directors of the Company, their retention of office would have been prejudicial to the interests of investors.
AND DIRECTS:
- the Company to retain an independent professional adviser to conduct an internal control review; and
- the Relevant Directors (except Mr Lin and Mr Qiu) to attend training.
The Exchange found that the Relevant Directors failed to:
- discharge their duties as directors in respect of certain of the Company’s receivables and prepayments: in particular, the EDs failed to safeguard certain of the Company’s assets, and the INEDs failed to take a sufficiently active interest in the Company’s affairs and proactively follow up anything untoward that comes to their attention;
- procure the Company’s financial statements to provide a true and fair view; and
- ensure the Company implemented an effective internal control system to ensure that key business decisions and significant financial issues were escalated to the board for consideration and/or information in a timely manner and for managing receivables and prepayments.