The NZ Markets Disciplinary Tribunal has ordered NZX-listed QEX Logistics to pay a $150,000 penalty for breaching disclosure requirements in 2020 and 2021.
The fine is in addition to an $80,000 penalty imposed last October for non-disclosure of $4m of inventory - infant formula - that went missing from a customs warehouse in China.
QEX is a small, export and cross-border logistics company involved in the storage, supply, packaging, customs clearance and delivery of New Zealand products to China.
In today's statement, the tribunal found that QEX had breached listing rules for not promptly advising the market of prospective and actual breaches by its wholly-owned subsidiary, New Y Trading Ltd, of its interest cover covenant with Westpac NZ; that the Ministry of Primary Industries had filed charges against New Y and QEX's chief executive and director Ronnie Xue, personally under the Animal Products Act; and that its independent directors – Conor English (then chair), Danny Chan and Martin MacDonald had resigned.
The Tribunal said QEX had also breached listing rules by not disclosing promptly the change in directors.
It ordered QEX to pay a financial penalty of $150,000, pay the costs of NZX and the tribunal, and that it be publicly censured.
The tribunal said it considered that the present case to be more serious than the previous one, given the number and duration of the breaches involved, particularly with respect to the interest cover breaches and the MPI charges.
"The earlier breach by QEX was also considered in the context of that breach not forming a pattern of misconduct by QEX and that QEX had been mindful of its disclosure obligations and had taken reasonable steps to determine what the position was in relation to the missing stock in difficult circumstances," the tribunal said.
"Neither of these mitigating factors are relevant to the breaches in this current case."
The NZX's regulatory wing, NZ RegCo, suspended trading in QEX shares last February 18 on the basis of QEX's breaches of its corporate governance requirements.
QEX listed on the exchange's then small-cap NXT in 2018.
Before its suspension, the stock had traded at 28.5c, having lost 47 per cent over the preceding 12 months.
The tribunal - a disciplinary body independent of NZX and its subsidiaries - determines and imposes penalties for referrals made to it by NZX in relation to the conduct of parties regulated by its rules.
Last May, QEX advised the market that NZ RegCo had accepted QEX's application to delist, subject to QEX satisfying their required conditions, including that QEX must obtain the approval of shareholders (excluding majority shareholder Xue), among other things.
QEX still has only one director - Xue - and trading in QEX's ordinary shares remains suspended.
No further announcements regarding QEX's delisting have been made to the market.
The tribunal said that as QEX remains listed, it is still bound by the listing rules.