KUALA LUMPUR (June 28): Bursa Securities has commenced de-listing procedures against China Stationery Ltd (CSL) and Xingquan International Sports Holdings Ltd after the two China-based companies failed to issue and announce their financial statements six months after their deadline.

The move  follows enforcement actions taken against the two companies and their directors for various breaches of the securities laws and Main Market listing requirements.

In separate filings with Bursa Malaysia today, both companies said they have been accorded five market days by Bursa Securities to make written representations to the regulator as to why its securities should not be de-listed.

On June 7, Bursa Securities had publicly reprimanded CSL and its directors for breaches of its Main Market listing requirements and slapped two directors with fines totalling RM5.38 million.

The China-based stationery maker was publicly reprimanded for, among others, financial reporting breaches such as failing to announce its quarterly reports for the financial period ended Sept 30, 2017, Dec 31, 2017, March 31, 2018, June 30, 2018, Sept 30, 2018 and Dec 31, 2018 within the stipulated timeframes. It also failed to issue the company's annual report for the 18-month period ended June 30, 2018 by the Oct 31, 2018 deadline.

Trading in CSL shares has been suspended since Dec 5, 2017, while that of Xingquan since June 8, 2017.