Emperor admits to inadvertent breaches

THE Emperor Group admitted yesterday that it had inadvertently broken the Hong Kong stock exchange's listing rules by failing to promptly disclose connected transactions and loan facilities.

Emperor Finance made loans of about $15 million to Jimmy Ip Chi-ming, who was managing director of Fitto Holdings, an Emperor subsidiary.

The group said it had asked the exchange to grant conditional waivers from the rules because the transactions were licensing agreements carried out at arm's length on regular commercial terms. It expected that it would complete many more similar business agreements in the future.

Emperor said those transactions were not announced when they occurred and only came to light in the group's annual account to March 31, 1995.

'The directors of the group regret that they did not appreciate the applicability of the Listing Rules at the time when the relevant agreements were entered into,' the company said.

'The directors of the Emperor Group will consider to institute necessary measures to avoid a similar situation arising.' One violation arose out of an agreement signed in June between Fitto Mobile Laser Distribution Co and Master Strength.

Fitto Mobile is a 60 per cent subsidiary of Hong Kong Daily News, itself is a subsidiary of Emperor (China Concepts) Investment, part of the Emperor Group. Master Strength is beneficially owned by Alfred Cheung, also a director of Fitto Mobile and so connected to the Emperor Group.