LANCANG TEA(06911.HK): Independent Investigation Confirms Three Incidents Stemmed from Personal Misconduct of Former Senior Executives; Remedial Measures Implemented
NewTimeSpace News: Pu'Er Lancang Ancient Tea Co., Ltd. (06911.HK) announced on 7 July that an independent investigation report confirmed three matters – private lending disputes, bank account freezing and litigation, as well as warehouse inventory shortages – arose from personal irregular conduct of former senior executives Ms. Wang, ex-General Manager, and Mr. Zhang, ex-Director. Relevant involved parties are not connected with the Company. The two executives shall be held accountable for relevant losses, and internal control rectifications have been completed. No other irregularities or undisclosed material matters were identified as of the report date.
NewTimeSpace News: Pu'Er Lancang Ancient Tea Co., Ltd. issued an inside information announcement dated 7 July 2026. The investigation concluded that three issues concerning the Company’s wholly-owned subsidiary Guangzhou Kangrui – private lending disputes, frozen bank accounts with associated litigation, and warehouse inventory losses – were caused by Ms. Wang, then General Manager, and Mr. Zhang, then Director. They unlawfully executed loan contracts, power of attorney documents and other instruments in the Company’s name for personal interests, and such acts constituted personal misconduct. Relevant counterparties involved have no connections with the Company.
Key facts are set out as follows:Ms. Wang instructed Mr. Zhang to affix the Company’s seal irregularly to a RMB10 million loan contract, with all proceeds transferred into Ms. Wang’s personal bank account;Mr. Zhang improperly issued a power of attorney, dragging the Company into a RMB30 million business cooperation dispute and resulting in the freezing of corporate bank accounts;The two signed a goods cooperation memorandum without authorisation, leading to the removal of 35 tonnes of new tea worth approximately RMB10 million. This matter has since been resolved via product replacement.
The Company has held Ms. Wang and Mr. Zhang accountable and reserves the right to pursue recovery of losses against them. Rectification of internal control systems covering seal management, stocktaking procedures and contract approval workflows has been fully completed. As at the date of the report, no further misconduct or undisclosed material issues were detected within the Group.
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