Bursa reprimands China Automobile, fines three directors RM1.5m for listing breaches

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KUALA LUMPUR (Sept 4): Practice Note 17 (PN17) company China Automobile Parts Holdings Ltd, together with three of its directors — including executive chairman Wang YuYun — have been publicly reprimanded by Bursa Malaysia Securities for breaching the Main Market listing requirements.

Wang, alongside executive director Chen XunZe and independent non-executive director Zhu GuoHe, were also fined a total of RM1.52 million, according to Bursa in a statement today.

According to Bursa, China Automobile's breaches were in relation to failing to announce its quarterly reports and Annual Report 2017, besides a slew of corporate governance and foreign listing requirement breaches.

Specifically, it said CAP failed to announce its quarterly results (QR) from the quarter ended March 2017 onwards till the quarter ended March 2018, within the stipulated timeframes. To date, the reports have yet to be announced.

It also did not reissue its audited financial statements (AFS) for its financial year ended Dec 31, 2015 (FY15) by July 4, 2017. The AFS FY15 was only issued on Jan 11 this year. The group also failed to issue its Annual Report 2017 for the 18-months ended June 30, 2017 by Oct 31 that year.

To date, China Automobile has yet to publish its corporate earnings after it last reported a net loss of RM77.12 million in FY16.

“As executive directors, they (Wang and Chen) were in a position but had failed, refused and/or neglected to address or resolve the audit issues with the external auditors, and were lackadaisical in the appointment of the company secretary and settlement of the outstanding fees to the external auditors to enable timely announcement or issuance of the financial statements and material disclosures to Bursa Malaysia Securities," the statement read.

“Zhu had failed to demonstrate that he had taken reasonable efforts to inquire, follow-up, monitor and supervise the resolution of the audit issues and appointment of the company secretary/agent towards the company’s timely re-issuance of the AFS 2015 and the announcement/issuance of the QR March 2017, QR June 2017 and AR 2017,” it added.

CAP shares have been suspended since June 8, 2017.

It last traded at one sen, giving the loss-making company a market capitalisation of RM13.62 million.