SC berates China Automobile for violating securities laws

KUALA LUMPUR (Bernama) – Securities Commission Malaysia (SC) reprimanded China Automobile Parts Holdings Limited (CAP) following the retention in office of its Executive Chairman Wang YuYun and its Executive Director Chen Xunze, which is detrimental to the public interest.

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

“Pursuant to its initial public offering, CAP had submitted to the SC and published a prospectus dated January 11, 2013, which contained financial statements of its wholly owned subsidiary, QuanZhou FenSun Automobile Parts Co Ltd (FenSun), which were false or misleading due to the overestimation 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 January 30, 2013.

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

In addition, CAP did not disclose disputes related to FenSun’s bank loan defaults and did not recognize the company’s outstanding bank loan debts in its financial statements, he said.

In addition, the SC reprimanded former CAP general manager Li Guo Qing; former non-independent non-executive vice-president Ong Juan Tee and Wang YuYun for provoking the submission and authorizing the publication of a CAP prospectus containing false or misleading financial statements and knowingly permitting its provision.

The SC also reprimanded Chen Xunze and two of CAP’s former CFOs, Lai Fong Ling and Chai Wai Teck, for knowingly allowing false or misleading financial statements to be provided to Bursa Malaysia.

“All those in breach did not appeal against the reprimand of the SC within the time limit prescribed by the 2007 law on capital markets and services,” he added.

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