HKEx Censures Legao Health Living (02370) and Two Executives Over Undisclosed RMB 190 Million Financial Assistance

According to a disciplinary action statement issued by Hong Kong Exchanges and Clearing on July 28, the exchange censured Legao Health Living (02370) and two executive directors, Tang Chengyong and Huang Yanwen, for failing to disclose financial assistance exceeding RMB 190 million provided by subsidiary companies to the parent group and independent third parties. The board was unaware of the transactions, which were largely settled in cash. The company and its subsidiaries also borrowed approximately RMB 102.95 million in transitional loans from the parent group, which were not properly disclosed.

HKEx found the company violated multiple provisions of the Listing Rules, including failure to make required announcements, consult compliance advisors, and obtain shareholder approval. The two executives have been ordered to complete 27 hours of training on regulatory, legal and compliance matters within 90 days.