Zhengtong Motor (01728.HK) announced that the Exchange yesterday (10th) issued a Disciplinary Action Statement in respect of the major and related transactions that have not yet been disclosed, and certain former directors of the company were publicly reprimanded for issuing directors' statements of inadequacy by the Exchange. The exchange also criticised the company for breaching Listing Rules rules in the past because the letter of commitment and the margin settlement agreement constituted major and connected transactions.

The Company refers to the commitment letter and the margin settlement agreement concluded in 2016 and 2020, respectively, before CCP acquired a 29.9% stake in the company in August 2021 and became the company's first largest shareholder. The declaration is only for the directors involved and does not involve any directors appointed after CCP becomes a major shareholder of the company.

The company also noted that it has improved internal controls and committed to good corporate governance since China Trade Holdings became the company's first largest shareholder, in response to criticism from the exchange. (vc/)

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