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SC reprimands China Automobile for violating securities laws

KUALA LUMPUR (Bernama) — The Securities Commission Malaysia (SC) has reprimanded China Automobile Parts Holdings Limited (CAP) following the retention of office by its executive chairperson Wang YuYun and executive director Chen Xunze, which is prejudicial to public interest.

The regulator also reprimanded CAP’s current and former directors as well as chief financial officers for various breaches of the securities laws.

“Pursuant to its initial public offering, CAP had submitted to the SC and issued a prospectus dated Jan 11, 2013, that contained financial statements of its wholly-owned subsidiary, QuanZhou FenSun Automobile Parts Co Ltd (FenSun), that were false or misleading due to overstatement of FenSun’s bank balances,” the SC said in a statement today.

CAP was listed on the Main Market of Bursa Malaysia Securities Bhd on Jan 30, 2013.

The SC said between 2013 and 2018, CAP had also furnished false or misleading financial statements to Bursa Malaysia due to the overstatement of FenSun’s bank balances.

Furthermore, CAP failed to disclose litigations in relation to bank loan defaults by FenSun and did not recognise outstanding liabilities of the company’s bank loans in its financial statements, it said.

In addition, the SC reprimanded CAP’s former managing director Li Guo Qing; former non-independent non-executive vice-chairman Ong Juan Tee and Wang YuYun for causing the submission and authorising the issuance of CAP’s prospectus that contained financial statements that were false or misleading and knowingly permitting its furnishing.

The SC also reprimanded Chen Xunze and two of CAP’s former chief financial officers, Lai Fong Ling and Chai Wai Teck, for knowingly permitting the furnishing of false or misleading financial statements to Bursa Malaysia.

“All persons in breach did not file any appeal against the SC’s reprimand within the prescribed time provided under the Capital Markets and Services Act 2007,” it added.

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