Mr. Niu Sanping and his son, Mr. Niu Jian, controlling shareholders of the Company, engaged in questionable transactions before and after its IPO. Mr. Niu Sanping signed a pre-IPO investment agreement that was later rescinded, yet they facilitated a $25 million loan and a $60 million investment that mirrored the rescinded agreement. Additionally, they arranged $40 million in interest-free loans for a personal acquaintance. Concerns arose regarding the rationale and due diligence for these transactions, as key directors approved them without proper scrutiny. Both Niu Sanping and Niu Jian have resigned from the Board as of May 27, 2024, and committed to not holding future leadership roles in listed companies in Hong Kong.
Resources: https://www.hkex.com.hk/News/Regulatory-Announcements/2024/241017news?sc_lang=en
