SMH Front Page not good (website)

Somehow I don't think this article has caputred what is happening, which I would clearly like to know

Thankfully it should embarrass the ASX to dig deeper and see what other "discrepancies" and "a misunderstanding as to his obligation to disclose his indirect interests".


http://www.smh.com.au/business/mark...up-xpd-remains-suspended-20171102-gzdqmk.html

Shares of ASX-listed Chinese football gear group XPD remain suspended following the company's failure to clarify its directors interests in the sportswear company.

ASX compliance officers suspended the company on October 11 until they could clarify the interests of previous chairman Shui-Chiao Chang and chief executive Jiameng Zhang.

The ASX had found "discrepancies" in their public disclosures of shares.

On October 12 the ASX wrote to them asking them to "please explain why XPD did not lodge Appendices 3Y for Messrs Zhang and Chang reflecting the changes in XPD".

The Appendix 3Y document is submitted when changes occur in interests.

The ASX called for clear figures on how many shares each held and through which entity, and if there had been any changes to their shareholdings and why.

In their response, the company said: "Mr Shui-Chiao Chang had a misunderstanding as to his obligation to disclose his indirect interests in relation to the Appendix 3Y Notifications. The failure to lodge Appendices 3Y was his inadvertent oversight."

The company then disclosed that Mr Zhang had an 80 per cent stake in the holding company and Mr Chang 20 per cent. This was a substantial change to the 60/40 stake reported previously.



On October 27 the company announced Wayne Reid as the new chairman, and the resignation of non-executive directors Yubin Qiu and Alvin Tan.

Shares in the company remain suspended, and last traded at 3.3¢ having been as high as 38¢ in 2015.

XPD is one of a number of Chinese companies floated on the ASX that have had a disappointing run.

The company listed on the ASX in May 2015, focused on growing its line of football gear and footwear, which is becoming more popular as the Chinese take a greater interest in sports and following Chinese government measures to promote healthy lifestyles.

XPD's main manufacturing operations are in Jinjiang, China. It designs, develops, manufactures and markets apparel and accessories through wholesale channels to distributors.

In November Morgans raised concern about the company's "fundamentals", noting its "lack of operational transparency" and "margin exposure to fluctuations in sourcing costs". It also cited worries over "capital management initiatives including a share buyback".