Date Company/ Name Breach Conduct Disciplinary Actions
27 September 2019

• Yashili International Holdings Limited (“Company”)

• MLR14A.35

• MLR14A.36

• The Company breached MLRs 14A.35 and 14A.36 by failing to comply with the announcement and independent shareholders’ approval requirements for certain connected and continuing connected transactions.

Listed issuers that commit repeated breaches of the Listing Rules should expect appropriate regulatory action. Directors should take active steps to avoid repeated Listing Rule breaches in relation to the same subject matter.

A listed issuer and its directors must maintain adequate and effective internal controls to ensure compliance with the Listing Rules, including appropriate measures to identify connected persons and connected transactions, manage and monitor the reporting of connected transactions at the subsidiary level. Listed issuers should provide clear guidance, training and/or written procedural manuals to staff members who are charged with the responsibility of reporting connected transactions.


Public Criticism of

• Yashili International Holdings Limited


• The Company to retain an independent professional adviser to conduct an internal control review;

• The Company to procure each of the relevant directors of the Company during the time of the Company’s breaches (other than former directors of the Company) to attend training; and

• The Company to provide such assistance as the relevant former directors of the Company may require to attend the training as a pre-requisite of their future appointment as a director of any company listed on the Exchange

as described in the news release.