Announcement - Changgang Dunxin Enterprise Company Limited (In Provisional Liquidation) (Incorporated in Cayman Islands with limited liability) (Stock Code: 2229) Proceeding to third stage of delisting procedures

香港聯合交易所有限公司
(香港交易及結算所有限公司全資附屬公司)
THE STOCK EXCHANGE OF HONG KONG LIMITED
(A wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited)

ANNOUNCEMENT

In relation to the matter of
Changgang Dunxin Enterprise Company Limited (In Provisional Liquidation) 
(Incorporated in Cayman Islands with limited liability)
(Stock Code: 2229)

Proceeding to third stage of delisting procedures

Trading of the Company’s shares was suspended on 20 January 2016 pending release of an announcement concerning the irregularities in relation to the Company’s former chairman and executive director, Mr Zheng Dunmu, who is suspected to have involved in forgery of the share certificates of the Company’s shares (the Incident).

On 17 May 2017, the Securities and Futures Commission has exercised its power under Rule 8(1) of the Securities and Futures (Stock Market Listing) Rules to direct the Exchange to suspend all dealings in the shares of the Company from 18 May 2017.

By 14 June 2017, the Exchange was of the view that the Company did not comply with the requirement to have sufficient operations or assets under Rule 13.24.  The Exchange placed the Company into the first and second delisting stages on 14 June 2017 and 14 December 2017 respectively.  At the end of the second delisting stage on 13 June 2018, the Company did not provide any resumption proposal.  Therefore, the Exchange has decided to place the Company into the third delisting stage under Practice Note 17 to the Listing Rules.

The Company will have a final six months to provide a viable resumption proposal to demonstrate sufficient operations or assets as required under Rule 13.24.

The Company must also:

1. conduct an appropriate investigation on the Incident, and disclose details of the Incident and the information necessary to allow trading in the Shares in an orderly manner;
   
   
2. conduct an appropriate investigation on its board’s concerns over the suspicious dissipation of cash and the suspected misuse of funds of the Group, disclose details of the findings of the investigation, assess the impact on the Company’s financial and operational position, and take appropriate remediate actions;
   
   
3. demonstrate that there is no reasonable regulatory concern about management integrity which may pose a risk to investors and damage market confidence;
   
   
4. publish all outstanding financial results and address any audit qualifications;
   
   
5. have the winding up petitions against the Company withdrawn or dismissed and provisional liquidators discharged; and
   
   
6. inform the market of all material information for shareholders and investors to appraise the Company’s position.

If no viable resumption proposal is received by the end of the third delisting stage (ie 4 January 2019), the Company’s listing will be cancelled.  The Exchange will make a further announcement if the delisting takes place.

Ends