KUALA LUMPUR – Securities Commission Malaysia (SC) has reprimanded China Automobile Parts Holdings Ltd (CAP), and its current and former directors and chief financial officers for various securities law breaches.
In a statement today, under Section 354(3)(f)(ii) of the Capital Markets and Services Act 2007 (CMSA), SC said the retention of office by CAP executive chairman Wang YuYun and executive director Chen Xunze is prejudicial to public interest.
Pursuant to CAP’s initial public offering, it said, the company submitted to SC and issued a prospectus dated January 11, 2013 containing financial statements of its wholly owned subsidiary QuanZhou FenSun Automobile Parts Co Ltd (FenSun) that were false or misleading, due to an overstatement of FenSun’s bank balances.
CAP was listed on the main market of Bursa Malaysia Securities Bhd on January 30, 2013.
“Between 2013 and 2018, CAP also furnished false or misleading financial statements to Bursa Malaysia due to the overstatement of FenSun’s bank balances,” said SC.
“Further, CAP failed to disclose litigation in relation to bank loan defaults by FenSun, and did not recognise the outstanding liabilities of FenSun’s bank loans in its financial statements.”
SC reprimanded former CAP managing director Li Guo Qing, former non-independent and non-executive vice-chairman Ong Juan Tee, and Wang for the following offences:
- Causing the submission and authorising the issuance of CAP’s prospectus that contained financial statements that were false or misleading; and,
- Knowingly permitting the furnishing of false or misleading financial statements to Bursa.
SC also reprimanded Chen and former CAP CFOs Lai Fong Ling and Chai Wai Teck for knowingly permitting the furnishing of false or misleading financial statements to Bursa.
All of the persons in breach did not file an appeal against SC’s reprimand within the prescribed time period as provided under CMSA, said the statement. – The Vibes, October 13, 2021
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