Date Company/ Name Breach Conduct Disciplinary Actions
5 July 2018
• Chengdu PUTIAN Telecommunications Cable Company Limited (the “Company”)

• Mr Zhang Xiao Cheng, chairman and executive director (“ED”) of the Company

• Mr Fan Xu, ED of the Company

• Mr Chen Ruo Wei, former ED of the Company

• Ms Fu Ruo Lin, former ED of the Company

• Mr Jiang Jian Ping, former ED of the Company

• Mr Su Wen Yu, former ED of the Company

• Mr Ping Hao, former ED of the Company

• Mr Cong Hui Sheng, former ED of the Company

• Mr Du Xin Hua, former ED of the Company

• Mr Choy Sze Chung Jojo, former independent non-executive director (“INED”) and chairman of the audit committee (the “AC”) of the Company

• Mr Xiao Xiao Zhou, INED and AC member of the Company

• Mr Wu Zheng De, former INED and AC member of the Company

• Mr Li Yuan Peng, former INED and AC member of the Company

• Mr Wang Mi Cheng, ED of the Company

(collectively, “Relevant Directors”)
 
• MLR14A.35, 14A.37 to 14A.40, 14A.46 to 14A.48 (in effect before 1 July 2014)

• MLR14A.35 and 14A.36

• Director’s Undertaking
                       
• Company failed to comply with the reporting, announcement, annual review and independent shareholders’ approval requirements in conducting continuing connected transactions identified in the news release.

• Relevant Directors failed to use their best endeavours to procure the Company’s Exchange Listing Rule compliance, breaching their Directors’ Undertakings.
 

REGULATORY MESSAGE:
 

An issuer and its directors must familiarise themselves with all relevant Exchange Listing Rules concerning continuing obligations, in particular, Chapter 14A of the Exchange Listing Rules which governs connected transactions and maintain adequate and effective internal controls in the issuer for procuring its compliance with the Exchange Listing Rules, including appropriate measures to manage and monitor the reporting of connected transactions at the subsidiary level.

The issuer should not rely on its subsidiaries to identify and report continuing connected transactions for Exchange Listing Rule compliance without establishing a mechanism by which reporting by subsidiaries could be effectively supervised and monitored, and providing clear guidance, training and/or written procedural manuals to the staff members who are charged with the responsibility of reporting.

The issuer should recognise the importance of internal controls and that the INEDs are primarily responsible for implementing and ensuring that the internal control system works and remains effective.

Directors must take immediate steps to procure the issuer to comply with the Exchange Listing Rules governing continuing connected transactions as soon as possible after non-compliance is discovered.

If the issuer and its directors have any doubt in respect of Exchange Listing Rule requirements, they should seek professional advice or consult the Exchange.
 

SANCTIONS:
 

Public Censure of
  

• Chengdu PUTIAN Telecommunications Cable Company Limited

• Mr Zhang Xiao Cheng

• Mr Fan Xu

• Mr Chen Ruo Wei

• Ms Fu Ruo Lin

• Mr Jiang Jian Ping

• Mr Su Wen Yu

• Mr Ping Hao

• Mr Cong Hui Sheng

• Mr Du Xin Hua

• Mr Choy Sze Chung Jojo

• Mr Xiao Xiao Zhou

• Mr Wu Zheng De

• Mr Li Yuan Peng

Public Statement Involving Criticism of:

• Mr Wang Mi Cheng

DIRECTIONS:

• The Company to retain an independent professional adviser to conduct a thorough review of and make recommendations to improve the Company's internal controls as described in the news release.

• The Company to appoint an independent compliance adviser as described in the news release.

• Directors’ training as described in the news release.
                             

NEWS RELEASE: