QEX director Jingjie Xue banned and ordered to pay a penalty

The penalties and ban were imposed by the Court after the cross-border freight logistics company failed to prepare and file its annual financial statements for several years. QEX was suspended and then delisted from the NZX because of breaches of listing rules and corporate governance requirements.

It is the first time the Financial Markets Authority (FMA) has instigated civil proceedings for breaching financial reporting obligations in the Financial Markets Conduct Act 2013.

FMA’s Head of Enforcement Margot Gatland said: “The FMA brought this case because hundreds of shareholders were left without important financial information due to poor management.

"Financial reporting is an important feature of financial markets. It promotes transparency and enables confident participation in markets. Investors need access to timely and accurate information about a company's financial performance. Compliance with reporting obligations is vital for investors.”

The penalties relate to failure to comply with two sections under the Financial Markets Conduct Act, which require reporting entities to prepare financial statements that comply with generally accepted accounting practice, have those financial statements audited, and to file those audited financial statements with the Registrar of Companies within four months of the entity’s balance date.

QEX and Mr Xue cooperated with the FMA throughout its investigation and the proceedings.

ENDS

Media contact:
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Non-media queries:
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Background

QEX is the ultimate holding company of New Y Trading Company Limited (a New Zealand company) and New Y Trading (AUS) Pty Limited (an Australian company). It is also the parent company of Shanghai Ditu International Freight Forwarder CO. Limited in Shanghai.

From 6 November 2017 to 18 November 2021, QEX had two other directors, named Conor Joseph English and Danny Chan. Since 18 November 2021, Mr Xue has been the sole director of QEX.

QEX listed its shares on the NZXT Market in February 2018. On 11 October 2018, QEX migrated its share listing to the NZSX Main Board, the main board of the New Zealand stock exchange.

While listed on the stock exchange, QEX offered equity securities in the form of its shares to investors under a regulated offer under s 41 of the FMCA.

FMC reporting entities are entities that are required to prepare audited financial statements under the Financial Markets Conduct Act 2013 and include listed companies and companies that raise money under a Product Disclosure Statement.