Exchange’s Disciplinary Action against Two Former Directors of China Health Technology Group Holding Company Limited (formerly known as China Bozza Development Holdings Limited) (Stock Code: 1069)

香港聯合交易所有限公司
(香港交易及結算所有限公司全資附屬公司)
THE STOCK EXCHANGE OF HONG KONG LIMITED
(A wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited)

The Stock Exchange of Hong Kong Limited

IMPOSES A DIRECTOR UNSUITABILITY STATEMENT and CENSURE against:

1. Mr Wang Yue, former executive director of China Health Technology Group Holding Company Limited (formerly known as China Bozza Development Holdings Limited); and
2. Ms Tian Guangmei, a former independent non-executive director of the Company.

The Director Unsuitability Statement is a statement that, in the Exchange’s opinion, Mr Wang and Ms Tian are unsuitable to occupy a position as director or within senior management of the Company or any of its subsidiaries.

Mr Wang and Ms Tian had failed to cooperate in the Exchange’s investigation concerning their failure to discharge directors’ duties when (i) operating the Company’s money lending business between 2015 and 2019 and/or (ii) procuring the Company to dispose of certain subsidiaries in 2018.

Based on evidence available to the Exchange, Mr Wang, in charge of the Company’s money lending business at the material time, had approved the Company granting and/or extending eight loans in a total principal sum of HK$138.3 million without performing sufficient due diligence, risk analysis and credit assessment. Nor had he properly assessed and monitored the sufficiency of the relevant pledged assets. There was no evidence that Mr Wang had declared that some of the lenders were his family members. An impairment of about 86% on the loan receivables was recorded in the Company’s 2019 annual results.

Mr Wang and Ms Tian were also found that in 2018, they had procured the Company to allow the purchaser for certain subsidiaries of the Company to delay paying the consideration of RMB93 million until months after completion of the sale on an unsecured and interest-free bases. The purchaser defaulted paying any consideration, resulting in a full impairment of RMB93 million in the Company’s 2019 annual results. There was no evidence of any due diligence or credit assessment conducted by Mr Wang or Ms Tian on the purchaser prior to the disposal.

Mr Wang and Ms Tian were clearly aware of the Exchange’s investigation but did not respond to the investigation and the Exchange’s reminder letters after they ceased to be directors of the Company.

Ends