Item 8.01 Other Events.
As disclosed in Item 3.01 of the Current Report on Form 8-K filed by the Company
on January 7, 2020, the Company received a notice of non-compliance from the
NASDAQ Listing Qualifications Department (the "Staff"). The notice informed the
Company that, as a result of the termination of two independent directors' terms
of office, the Company was not in compliance with NASDAQ Listing Rule 5605,
which requires that independent directors must comprise a majority of the Board
of Directors of the Company (the "Board").
On January 2, 2020, the Company announced the resignations of Qingwei Ma, a
non-independent director, and two independent directors, Feng Li and Xin Li, as
well as the appointments of Huiyi Chen and Guanbao Huang as independent
directors of the Company. The Board has determined that Mr. Chen qualities as
"an audit committee financial expert" and both Mr. Chen and Mr. Huang meet the
independence and financial literacy requirements as set forth in NASDAQ Listing
Rule 5605.
On January 10, 2020, the company announced that it has received the formal
notification from the Staff on January 9, 2020 which confirmed that the Company
has regained compliance with NASDAQ Listing Rule 5605 with the appointments of
Mr. Chen and Mr. Huang. A copy of the press release is filed as Exhibit 99.1 to
this report.
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