HOMELAND ITL must disclose the underreported transactions involving last year's subscription to money market funds and structured deposits

HOMELAND ITL (03798.HK) announced that from February 7, 2024, to November 29, the group has subscribed to wealth management products issued by different financial institutions. The subscription funds were allocated from the group's own idle funds. Due to the similar nature of the products subscribed by the group from various relevant financial institutions, and the agreements made with the same financial institution within 12 months, the relevant percentage rates for calculation under Listing Rule 14.22 must be calculated on a consolidated basis, constituting a discloseable transaction under Chapter 14 of the Listing Rules.

The group spent USD 14.5 million to subscribe to GaoTeng WeiJin USD Money Market Fund and subscribed to 15 structured deposits from China Merchants Bank, all of which have matured. The board expresses deep regret that the company failed to comply with the Listing Rules in a timely manner regarding these discloseable transactions, but emphasizes that the non-compliance was an unintentional oversight, primarily due to the company's then-effective internal control procedures focusing mainly on scale testing of transactions based on independent benchmarks, lacking a specific and mandatory procedure to trigger a "retroactive" check during critical times.

To address the oversight of failing to disclose past subscriptions to wealth management products in accordance with Chapter 14 of the Listing Rules and to prevent similar violations in the future, the company will implement remedial measures, including enhanced approval and disclosure procedures for wealth management products, initiation of transactions and preliminary reviews, independent verification and external consultation, and final approval. Additionally, mandatory training, professional consultation, and annual internal control reviews will be conducted to ensure that relevant employees maintain compliance awareness and adhere to professional compliance requirements