The stock exchange listing committee publicly criticised Chinese medicine retailer Nam Pei Hong (Holding) and three former directors for failing to disclose the sale of a controlling stake in the company in July last year.
Nam Pei Hong, its former chairman Charles Chan Kwok-keung and former executive directors Ken Cheung Kwok-wah and Tse Cho-tseung, have written to the exchange to apologise for the incident and confirm it will not happen again.
Mr Chan, Mr Cheung and Mr Tse issued a public announcement yesterday to apologise for their behaviour.
The apology may have been a factor in the exchange's disciplinary decision, which falls short of a public censure.
In July last year, Nam Pei Hong controlling shareholder International Tak Cheung Holdings (ITC) and subsidiary Paul Y-ITC Construction Holdings sold their 33 per cent Nam Pei Hong stake for $151.5 million.
The buyer was Victory Hunter Holdings, owned by Yau Wai Ming, of the Heilongjiang government.
A week before the transaction was announced on July 30, 1997, Nam Pei Hong's share price and turnover rose significantly.