Market Misconduct Tribunal sanctions Greencool’s former chairman and senior executives for disclosure of false or misleading information

26 Jun 2017



The Market Misconduct Tribunal (MMT) today ordered the former chairman and chief executive officer of Greencool Technology Holdings Limited (Greencool), Mr Gu Chujun, to disgorge $481,969,785 of profit from his market misconduct (Note 1).

This is the largest disgorgement order amount ever imposed by the MMT to date.

On 29 December 2016, the MMT found Gu, three former directors, namely Mr Zhang Xihan, Mr Hu Xiaohui, Mr Xu Wanping, and former financial controller Mr Henry Mok Wing Kai, had been involved in disclosing false or misleading information inducing transactions under the Securities and Futures Ordinance by grossly overstating Greencool’s sales, profit, trade receivables, bank deposits and the company’s net asset value for the financial years ended 31 December 2000 to 2004 by approximately RMB487 million, RMB653 million, RMB982 million, RMB1,062 million and RMB904 million respectively which represents 43 per cent to 80 per cent of Greencool’s total net assets in these years (Notes 2 & 3).

The MMT also imposed:

The MMT further ordered:

The SFC would like to thank the enforcement agencies in Mainland China that have provided continuous assistance in this matter.

End

Notes:

  1. Gu was ordered to disgorge $481,969,785 to the Government, which is the profit that he made from his market misconduct, together with interest.
  2. For further details of the MMT proceedings, please see the SFC’s press releases dated 23 June 2014, 18 July 2014, 8 August 2014, 30 October 2014, 14 November 2014 and 30 December 2016.
  3. The MMT’s reports are available on its website (www.mmt.gov.hk)

 



Page last updated : 26 Jun 2017