China Automobile Parts' executive chairperson resigns

KUALA LUMPUR (May 5): Wang Yuyun has resigned as group executive chairperson of Practice Note 17 (PN 17) company China Automobile Parts Holdings Ltd (CAP) effective Thursday (May 5).

In a bourse filing, the automobile parts manufacturer said Wang resigned “to focus on personal endeavours”.

The 43-year-old was appointed as executive chairperson on May 15, 2014 — eight months after CAP was listed on the Main Market of Bursa Malaysia Securities Bhd on Jan 30, 2013.

Last October, the Securities Commission reprimanded Wang, together with CAP’s former managing director Li Guo Qing, and former non-independent non-executive vice-chairman Ong Juan Tee for allowing 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.

SC also reprimanded CAP executive director 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.

"Between 2013 and 2018, CAP had 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," said SC.

Quanzhou FenSun Automobile Parts Co Ltd is one of two CAP subsidiaries which it had deconsolidated during FY17, as the management had determined that control over these subsidiaries had been lost. The other deconsolidated subsidiary was China Automobile Parts (Hong Kong) Holding Ltd.

CAP shares price closed unchanged at 1.5 sen on Thursday, for a market capitalisation of RM20 million.