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KNK Holdings Limited
(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 8039)
UPDATE FROM INDEPENDENT COMMITTEE
This announcement is made by KNK Holdings Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 17.10 of the Rules Governing the Listing of Securities on GEM (the "GEM Listing Rules") of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and the Inside Information Provisions (as defined under the GEM Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
References are made to the announcements of the Company dated 18 July 2019, 9 September 2019, 2 October 2019, 20 November 2019 and 20 January 2020 (the "Announcements") in relation to, among others, (i) three legal letters received by the Company; (ii) Statutory Demands;
Petition; and (iv) dismissal of the Petition. Capitalised terms used herein shall have the same meanings as those defined in the Announcements.
As disclosed in the Announcements, the Independent Committee was established to handle the investigation of the allegations made under the letters received by the Company and all other matters in connection therewith or arising thereform.
Upon investigation by the Independent Committee, there are reasons to believe that loans (the "Loans") were advanced by the subsidiaries of the Group to several debtors using part of the proceeds of the subscription money for the alleged bonds as disclosed in the announcement of the Company dated 18 July 2019 (the "Alleged Bonds"). The Loans of approximately HK$6.15
million were advanced by two indirect wholly-owned subsidiaries of the Company, namely, Golden Legend Capital Limited ("Golden Legend") and 金隽（深圳）控股有限公司 ("Jin
Juan"), to six debtors (the "Debtors") during the period between April and May 2019 (the "Relevant Period"). Neither the issuance of the Alleged Bonds nor the advancement of the Loans was authorized by the Board.
Based on the corporate records of the Group, it is noted that, during the Relevant Period, Mr. Sun Xiao Li ("Mr. Sun") and Mr. Gu Jintai ("Mr. Gu") were the directors of Golden Legend while Mr. Sun, Mr. Gu and Ms. Shi Lijie ("Ms. Shi", together with Mr. Sun and Mr. Gu, the "Three Directors Concerned") were the directors of Jin Juan. Mr. Sun was the executive Director of the Company (with duty suspended with effect from 18 July 2019) during the Relevant Period and resigned on 8 November 2019. Mr. Gu and Ms. Shi were the executive Directors of the Company during the Relevant Period but their duties were suspended since 18 July 2019 until their removal at the special general meeting of the Company on 13 December 2019.