Letter cover not timely plus food and related parties were informed by the Shenzhen Stock Exchange criticism

On the morning of May 8th, Gaga Food Announced that it had received a decision issued by the Shenzhen Stock Exchange on the punishment of criticism of the company and related parties.
Shenzhen Stock Exchange, it was found that Canada Foods and related parties have the following irregularities: On January 29, 2014, the General Meeting of The General Meeting of The Canadian Food Company considered the adoption of a motion to invest in Hexing (Tianjin) Equity Investment Fund Partnership (Limited Partnership) (the "Hexing Fund"), and Thatgar Foods, as a limited partner, used its own funds to invest 200 million yuan in the Hexing Fund, accounting for 99.995 percent of the total contributions of the Hexing Fund.
December 2015, Hexing Fund invested 94.04 million yuan in Shanghai Jiayu Asset Management Partnership (Limited Partnership) ("Shanghai Jiaxuan").
December 11, 2019, Hexing Fund distributed the capital and proceeds from its exit from Shanghai Jiaxuan.
total investment capital and income of 178 million yuan, is expected to increase pre-tax profit of 84.185 million yuan.
Food did not comply with its disclosure obligations in a timely manner until 2 January 2020.
SSE stated that the above-mentioned actions violated Articles 1.4, 2.1, 2.7 and 7 of the SSE's Stock Listing Rules (as amended in November 2018) Articles 6, 11.11.5 and articles 1.3 and 5.1.7 of the Shenzhen Stock Exchange's Guidelines for the Standardized Operation of Listed Companies on the SME Board (revised in 2015).
Xudong, then chairman and general manager of Gaga Foods, and Zhang Lei, then secretary of the board of directors, failed to perform their duties and duties of good faith and diligence, and bear important responsibilities for the above-mentioned acts.
source: Gaga Food Announcement in view of the above-mentioned violations of the facts and circumstances, in accordance with the relevant provisions, the Shenzhen Stock Exchange decided: to give Gaga food notification criticism of the punishment;
shall be recorded in the integrity file of the listed company and made public to the public for the above-mentioned violations of Gaga Foods and related parties and the sanctions imposed by Shenzhen Stock Exchange.
date at the end of the SSE decision is May 6.
And it is worth mentioning that after the May 5th market, Gaga Food announced that, for personal reasons, Zhang Lei, deputy general manager and secretary of the board of directors of the company, applied to resign as deputy general manager of the company, secretary of the board of directors, according to the relevant provisions, Zhang Lei's resignation report effective from the date of service to the board of directors of the company.
In addition to Gaga Foods' 2019 annual report, the director of the high-level position section, Yang Xudong introduced: November 18, 2019 into the company, the company's chairman, general manager, On April 8, 2020, he left his post to no longer hold any position in the company.
source: Gaga Foods Annual Report 2019