Baofeng Group Executives Resign after CEO is Arrested

On October 31, the Shenzhen Stock Exchange issued a letter of concern to Baofeng Group, a Chinese hardware and software developer, saying that in addition to Feng Xin, the CEO of the company who was arrested on suspicion of bribery in August, all senior managers of the company have resigned. The company is requested to appoint relevant senior management personnel as soon as possible to ensure the stable operation and the timely performance of information disclosure obligations.

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The Shenzhen Stock Exchange also reminded the company that all directors, supervisors and senior managers of Baofeng Group should strictly abide by laws, administrative regulations, departmental rules, normative documents, Shenzhen Stock Exchange GEM Listing Rules and other relevant regulations of Shenzhen Stock Exchange. In addition, company management should also fulfill their duties of loyalty and diligence, safeguard the interests of the company and all shareholders, and guarantee that any disclosed information is true, accurate and complete, and there is no false record, misleading statement or major omission.

According to the representatives of Baofeng Group, Zhang Pengyu, the company’s deputy general manager, resigned for personal reasons. His original term of office was due to expire on December 13, 2020. Zhang Lina also resigned as the CFO for personal reasons. His term was also due to expire on December 13, 2020. Previously, Secretary of the Board of the Baofeng Group, and several vice presidents also resigned from their respective positions.

On the evening of October 30, Baofeng Group announced that the company earned 93.65 million yuan in operating income in the first three quarters of 2019, down 90.95% year-on-year.