CHINA-based company that designed and manufactured sports and leisure clothing items, Xingquan International Sports Holding Ltd was the first company in China that was listed in Bursa Malaysia in 2009, a move that was followed by 10 other China-based companies since the last decade.
The company was at the top of its game in 2015 when it recorded a 19.55%increase in net profit to RM33.56 mil from RM28.07 mil in the previous year, as reported in a FocusM article on January 2015.
The article wrote that the positive result was mainly attributed to the company’s 24.35% surge in its overall revenue from caused increase of selling price that was due to a successful brand upgrade to Gertop and a decrease in selling and distribution expenses.
Everything was going fine, until Bursa Malaysia de-listed the company for continuously failing to issue their annual reports and audited financial statements, months after the stipulated time frame specified under the listing requirements.
In an article by The Star, Xingquan is one of the three China-based companies that were found to have been furnishing false or misleading financial statements to Bursa Malaysia.
It caused the company to be reprimanded, together with its executive chairman and CEO Wu Qingquan, executive director Wu Lianfa, former non-independent non-executive director Ng Sio Peng and former senior independent non-executive director Zhou Li Yi.
Apart from furnishing the false/misleading financial statements/ the article pointed out that Xingquan was reprimanded for falsely recording a loss of ¥415.7 mil (currently approx. RM252.4 mil) in the form of inventory by Xingquan’s wholly-owned subsidiary, furnishing a false agreement to Bursa between the said subsidiary and a third party, as well as recording cash and bank balances in eight bank accounts collectively belonging to Xingquan.
These actions caused Bursa Malaysia to suspend the trading of Xingquan on June 8, 2017.
Upon de-listing, the company will still be able to continue to exist, but as an unlisted entity. It can also continue operating and/or proceed with corporate restructuring. Its shareholders will also still be rewarded by the company’s performance.
However, we are still unable to discover whether or not the company is still operating, within or outside of Malaysia. – Sept 14, 2020
