Go back and try again, ASX tells Chinese football boot makers
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The directors of football boot maker XPD Soccer Gear Group have had some explaining to do.
China-based XPD (ASX:XPD) failed to disclose director interests in the company not once but twice — but put it down partly to a “misunderstanding”.
ASX compliance officers sounded the alarm bells earlier this month, suspending the company on October 11 until they could clarify the interests of chairman Shui-Chiao Chang and chief executive Jiameng Zhang.
An initial response from XPD was seemingly insufficient — prompting the ASX to request further clarification the next day.
“Please explain why XPD did not lodge Appendices 3Y for Messrs Zhang and Change reflecting the change in their interests in XPD,” the ASX wrote, asking for explicit figures on how much each held and through which entity.
Listed companies must keep the ASX across relevant interests of directors and their involvement in contracts. The Appendix 3Y document is submitted when changes occur in those interests.
In their response, the company said it was not aware of any such changes.
“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,” they wrote.
As a result, the company disclosed that Mr Zhang had an 80 per cent stake in the holding company and Mr Chang 20 per cent, a substantial change to the 60/40 stake noted previously due to a series of off-market trades.
Shares in the company remain suspended, and last traded at 33c.
The company makes and distributes soccer products in China under the XPD brand, capitalising on the growth of the sport in the country.
The newly created Chinese Super League is said to be worth upwards of $US250 million.