Homeland Interactive discloses wealth product subscriptions, cites inadvertent non-compliance

Homeland Interactive Technology Ltd. announced its Group subscribed for wealth management products from various financial institutions between February 7, 2024, and November 29, 2024. These subscriptions, funded by the Group's idle funds, were initially below the 5% disclosure threshold on a standalone basis. However, due to aggregation rules for similar products with the same financial institution within a 12-month period, the aggregated percentage ratios exceeded 5% but remained below 25%, classifying them as discloseable transactions under Chapter 14 of the Listing Rules.

The subscriptions include the GaoTeng WeValue USD Money Market Fund, with individual subscriptions of $5,000,000, $3,500,000, and $6,000,000. Additionally, the Group subscribed to multiple CMB Structured Deposits, with individual amounts ranging from RMB4,000,000 to RMB50,000,000. These CMB products were entered into by different subsidiaries including Yaotang Shenzhen, Jiaxiang Interactive, and Yutai Shenzhen. The annualized return rates for these structured deposits varied, generally between 1.30% and 2.30%.

The Board expressed regret for the inadvertent non-compliance with timely disclosure, attributing it to internal control procedures primarily focusing on standalone transaction size tests rather than a mandatory aggregation protocol. Remedial actions include enhanced three-phase approval procedures for wealth management products, independent verification by the CFO, and mandatory compliance training for relevant employees.