Hong Kong Stock Exchange: discipline action taken against MIE Holdings (01555) and one current director

On March 4th, the Stock Exchange of Hong Kong Limited issued disciplinary actions against MIE HOLDINGS Holdings Limited (01555) and a current director, criticizing MIE HOLDINGS Holdings Limited and condemning non-executive director and chairman Zhang Ruilin, while further instructing Zhang Ruilin to complete training. The Stock Exchange of Hong Kong stated that from 2016 to 2021, Zhang Ruilin failed to repay personal loans, leading to lawsuits filed by the lenders against him and a subsidiary of the company. Zhang Ruilin then had the subsidiary provide guarantees for his loans. The guarantees related to the subsidiary and subsequent settlement agreements constitute related transactions that should have been disclosed, but the company did not comply with the requirements of Chapter 14 and 14A of the Listing Rules. Due to Mr. Zhang's failure to timely report the matters and transactions to the board of directors of the company, the company also violated the Listing Rules. Although Mr. Zhang had the company's internal Chinese legal advisor handle the matters, he did not follow up with the advisor to ensure that the matters and transactions were reported to the board of directors and handled in accordance with the company's internal control procedures and the Listing Rules. The matters were not disclosed until they were uncovered by the company's former auditor in January 2023. The company and Mr. Zhang agreed to resolve this disciplinary action through a settlement. They did not contest their respective violations and accepted the sanctions and instructions imposed by the Stock Exchange.