SC Reprimands China Automobile Parts Holdings Limited (CAP), Current and Former Directors and Officers
Retention of two directors prejudicial to public interest
13 October 2021
The Securities Commission Malaysia (SC) issued a public statement today under section 354(3)(f)(ii) of the Capital Markets and Services Act 2007 (CMSA) to express its opinion that the retention of office by China Automobile Parts Holdings Limited’s (CAP) Executive Chairperson, Wang YuYun and Executive Director, Chen Xunze, is prejudicial to public interest.
The SC had reprimanded CAP as well as its current and former directors and chief financial officers for various breaches of the securities laws.

Pursuant to CAP’s initial public offering, CAP had submitted to the SC and issued a prospectus dated 11 January 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. CAP was listed on the Main Market of Bursa Malaysia Securities Berhad (Bursa Malaysia) on 30 January 2013.

Between 2013 to 2018, CAP had also furnished false or misleading financial statements to Bursa Malaysia due to overstatement of FenSun’s bank balances. Further, CAP failed to disclose litigations in relation to bank loan defaults by FenSun and did not recognise outstanding liabilities of FenSun’s bank loans in its financial statements.

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 the following offences:
  • Causing the submission and authorising the issuance of CAP’s prospectus that contained financial statements that were false or misleading; and
  • Knowingly permitting the furnishing of false or misleading financial statements to Bursa Malaysia.

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 CMSA.
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