Zhitong Financial APP was informed that on January 16, the Hong Kong Stock Exchange announced disciplinary action against Hongbao Resources Limited (delisted, former stock code: 01131) and five directors. The SEHK condemns Mr. Ng Xin Wei, the former Executive Director and Chief Executive Officer of Hung Pao Resources Limited, and makes a statement harming investors' interests to Mr. Ashok Kumar Sahoo, the former Executive Director and Chief Executive Officer of the Company, Mr. Ng Say Pek, the former Executive Director and Chairman of the Company, Ms. Lim Beng Kim Lulu, the former Executive Director of the Company, and Mr. Cheng Yu, the independent non-executive Director of the Company at the time of delisting.

In addition to the above statements to Mr. Sahoo, Mr. Ng Say Pek, Ms. Lim and Mr. Cheng, the Stock Exchange of Hong Kong publicly condemns each of them. The statement of damage to the interests of investors means that the Stock Exchange of Hong Kong considers that the retention of the above-mentioned directors may harm the rights and interests of investors.

The Stock Exchange of Hong Kong further instructed Mr. Ng Xin Wei to complete 15 hours of training.

Mr. Ashok Sahoo, the company's executive director and chief financial officer, made the company's subsidiaries sell a number of mandatory convertible debentures to a private company beneficially owned by him and his wife without notifying the other directors of the board; if the convertible debentures were converted into shares, Mr Sahoo acquired a 15 per cent stake in the company's Indian power plant for a relative nominal price. At about the same time, Mr. Sahoo took other actions to enable him to appoint directors and exercise control over the power plant. Six months later, before Mr. Sahoo resigned as a director, he arranged for the company's subsidiary of the power plant to issue further shares to its private company, thereby increasing its stake in the power plant. These transactions hurt the business interests of the company.

Mr Ng Xin Wei was appointed as a director of the subsidiary of the power plant to check and balance the authority and power of Mr Sahoo, but the evidence showed that instead of paying active attention to the affairs of the power plant, he relied entirely on Mr Sahoo.

As far as the company is concerned, the transactions conducted by Mr. Sahoo are subject to the requirements of the listing rules, but the transactions are not compliant. The remaining directors did not cooperate with the investigation conducted by the Stock Exchange of Hong Kong.