By FARA AISYAH / Pic By TMR

The Securities Commission Malaysia (SC) has reprimanded three China-based companies — China Stationery Ltd (CSL), Xingquan International Sports Holdings Ltd, and Maxwell International Holdings Bhd — and four individuals for various breaches of securities laws.

The four individuals are CSL executive chairman and CEO Chan Fung @ Kwan Wing Yin, Xingquan executive chairman and CEO Datuk Wu Qingquan, Xingquan ED Wu Lianfa and Maxwell non-independent non-ED Li Kwai Chun.

The SC also views that the retention of office by four of the directors in these companies are prejudicial to public interest.

The SC also reprimanded several individuals from the companies’ boards of directors and managements.

CSL’s Chan was reprimanded for causing two of the group’s wholly-owned subsidiaries to be a guarantor for Chan’s personal loans, with the intention of causing wrongful loss to the said subsidiaries.

Chan and CSL former ED Angus Kwan were also reprimanded for failure to respond to the SC when served with written notices requesting for information.

Angus and former independent non-ED Herman Widjaja were also reprimanded for furnishing false or misleading financial statements to Bursa Malaysia.

The commission reprimanded Xingquan’s Qingquan, Lianfa, former non-independent non-ED Ng Sio Peng and former senior independent non-ED Zhou Liyi for falsely recording a loss of 415.7 million yuan (RM252.91 million)  from the sale of inventory by the group’s wholly owned subsidiary; furnishing to Bursa Malaysia a false agreement between the said subsidiary and a third party; furnishing false or misleading financial statements to Bursa Malaysia; and recording cash and bank balances in eight bank accounts collectively belonging to Xingquan that were false or misleading.

Both Qingquan and Lianfa were also reprimanded for failure to provide a response to the SC when served with written notices requesting for information.

Maxwell and Li, independent non-ED Su DeMou and former CFO Tan Swee Song were rebuked for recording in Maxwell’s financial statements a payment of 45.6 million yuan by the group’s wholly owned subsidiary, which information was false or misleading; and furnishing false or misleading financial statements to Bursa.

The trading of Maxwell was suspended on May 10, 2018, Xingquan on June 8, 2017, and CSL on Dec 5, 2018.