Senior Executives Of Listed Companies Invest In Similar Enterprises And Challenge Business Integrity

Recently, I read a number of articles forwarded by Tencent. Some of them are called Cheng Zuming: forging ahead all the way with a sincere heart, and some are called Cheng Zuming: Taking dreams as horses, with extraordinary pattern. The contents are basically the same. They are all about a private entrepreneur. After a close reading, I can't help but feel inspired and envious of the hero's successful experience, but after a simple Baidu, it is found that there are many contradictions and even problems in the hero's successful experience. As a former senior executive of the most strictly regulated listed company, Cheng Zuming, a private entrepreneur, started or invested in a large number of peer underwear or clothing enterprises after the company went public and during his tenure of office. Will it damage the interests of the listed company? Is it against loyalty and integrity? Is it suspected of violating the rules? We should know that once the senior executives are involved in concealing the competition of the same industry, it is very dangerous, Many executives of listed companies have been hit by this. The protagonist of this article, "Cheng Zuming", is not only shareholders and executives of listed companies, but also calls himself the co-founder.

In recent years, it is common for executives of listed companies to engage in horizontal competition and related party transactions, which are basically prohibited by the regulatory authorities. The rules of the Hong Kong stock exchange are more stringent, requiring major shareholders to sign a non competition commitment letter. Competitive business is clearly defined in the listing rules. Once the major shareholders and management sign the letter of commitment, they must strictly abide by it. This is a "high-voltage line", which can not be collided with, otherwise it may face serious consequences. This article may have exposed some serious problems.

In the above-mentioned article, it is written that "after the city beauty was listed in 2014 Cheng Zuming has successively invested in a series of enterprises, including urban Zhigu Real Estate Development Co., Ltd., Shennan Commercial Asset Management Co., Ltd., Guangdong Xiangmi boudoir Technology Co., Ltd., Guangdong lanmiao Clothing Co., Ltd., Guangdong juyoujie Technology Co., Ltd., and Tibet Mingshi Dairy Co., Ltd. ", Xiangmi boudoir, lanmiao and Juyou Street are all underwear or underwear related enterprises. It is mentioned in the article that "the birth of Xiangmi boudoir is due to the pain of the traditional chain franchise mode of underwear brand deeply felt by him for many years in the operation of urban beauties Xiangmi boudoir has opened more than 2000 stores in five years, with nearly 10000 employees, leading the industry in sales growth. ". "The investment in building the brand of Lanmu is based on Cheng Zuming's grasp of the trend of consumption upgrading As a light luxury underwear brand for middle and high-end consumers, Lanmu came out under the guidance of Cheng Zuming's planning. Through the two sales channels of cross-border e-commerce and offline shopping centers, Lanmu has achieved an annual sales volume of nearly 300 million yuan. " According to the self-reported content of the above article, there is no doubt that "Cheng Zuming" began to invest, operate and actually control his underwear and related enterprises other than the senior management company five years ago.

Then Baidu "Cheng Zuming" resignation information, on February 1, 2019, announced that " Since February 1, 2019, the company's executive director, Cheng Zuming, has been transferred to be a non-executive director of the company ". However, it was announced on June 29, 2018 that" the company was informed by Cheng Zuming, the main shareholder, executive director and chief operating officer of the company, It has purchased a total of 600000 shares of common stock of the company from the market on 29 June 2018 through its wholly-owned subsidiary Chuanlong investment limited at an average price of about HK $3.9521 per share. These shares are equivalent to about 0.03% of the total issued share capital of the company at the date of this announcement. "

However, according to the company change information inquired by Aiqi, Cheng Zuming did not change the identity of shareholders and directors until February 25, 2020.

That is to say, until February 25, 2020, "Cheng Zuming" has been serving as the core executives, major shareholders, directors and other important positions of listed companies.

Then, the question comes. Five years ago, "Cheng Zuming" has opened more than 2000 stores in five years, with nearly 10000 employees and leading the industry in terms of sales growth. "It has already started to operate and invest in underwear enterprises other than the company in which he works. Is it appropriate, legal and compliant?

This kind of article, to the reporter, is a bit "pit"!