The Hong Kong Securities and Futures Commission seeks a court order to disqualify four former directors of CENTURY EN INTL
On September 19, the Hong Kong Securities and Futures Commission sought to have the qualifications of four former directors of CENTURY EN INTL revoked, citing their failure to properly oversee the company's major subsidiaries in mainland China, which led to the company no longer consolidating these subsidiaries' accounts since 2019 and recording a loss of HKD 184 million in the 2019 fiscal year. The involved directors include former executive directors Ho Chun Kit, Cheng Kin Pong, and independent directors Yang Yuanjing and Liu Chongda
According to the Zhitong Finance APP, on September 19, the Hong Kong Securities and Futures Commission (SFC) announced that it is seeking a disqualification order from the Court of First Instance against four former directors of CENTURY EN INTL (08132) (formerly known as China Oil Hong Kong Energy Group Holdings Limited) in legal proceedings initiated under Section 214 of the Securities and Futures Ordinance.
The four individuals involved in the SFC's legal proceedings are: former executive director Ho Chun Kit (male); former executive director, chief financial officer, and company secretary Cheng Kin Pong (male); former independent non-executive director Yang Yuanjing (female) and Liu Chongda (male).
Before taking this action, the SFC conducted an investigation into China Oil Hong Kong Energy's loss of control over four major operating subsidiaries in mainland China. Due to the loss of control over these subsidiaries, the company ceased to consolidate these subsidiaries' financials from January 1, 2019, resulting in a loss of HKD 184 million for the year ended March 31, 2019.
The SFC alleges that the former directors failed to properly supervise the four major operating subsidiaries in mainland China and did not act in the best interests of the company. Their prolonged neglect of supervision ultimately led to the inability to consolidate the financials of these operating subsidiaries, resulting in significant financial losses.
In addition, Ho, Yang, and Liu are held responsible for the inaccurate or misleading information regarding one of the subsidiaries in mainland China contained in a circular published by China Oil Hong Kong Energy in 2014.
Information shows that China Oil Hong Kong Energy was listed on the Growth Enterprise Market of the Hong Kong Stock Exchange on May 18, 2011. The company and its subsidiaries primarily engaged in the trading of refined oil and methyl tert-butyl ether, as well as the manufacturing and sale of power supplies and data cables during critical periods
