Kuala Lumpur, 18 September 2018
SC’s Public Statement: Multi Sports’ retention of Lin Huozhi and Lin Liying as Executive Directors prejudicial to public interest
The Securities Commission Malaysia (SC) issued a public statement today to express its opinion that the retention of office by two Executive Directors of Multi Sports Holdings Limited (Multi Sports), Lin Huozhi and Lin Liying, is prejudicial to public interest.
On 27 June 2018, the SC had reprimanded Multi Sports for furnishing false or misleading financial statements to Bursa Malaysia, a breach of section 369 of the Capital Markets and Services Act 2007 (CMSA).
In addition, Lin HuoZhi and Lin Liying, as well as Multi Sports’ former Independent Non-Executive Director, Wong Wang Lam, were reprimanded for knowingly authorising the furnishing of the false or misleading financial statements.
The SC imposed these sanctions after finding that Multi Sports had failed to disclose outstanding liabilities incurred by its wholly-owned China subsidiary, Jinjiang Baixing Shoe Materials Co Ltd in its Condensed Consolidated Statement of Financial Position from the period of 31 March 2015 to 31 March 2016. These liabilities relate to eight loans amounting to RMB169.55 million.
Although Wong Wang Lam has resigned from Multi Sports, Lin HuoZhi and Lin Liying, whose last known addresses are in Fujian City, China, remain as Executive Directors of Multi Sports. Their current whereabouts cannot be ascertained.
All persons in breach have not filed any appeal against the SC’s reprimand on 27 June 2018 within the prescribed time provided under the CMSA. This public statement is issued pursuant to section 354(3)(f)(ii) of the CMSA.
SECURITIES COMMISSION MALAYSIA