Date: October 24, 2017
For some time, shareholders of the SGX listed S-Chip, China Fibretech, have been suffering following the claims in November 2015 (and subsequent payment) against China Fibretech’s wholly-owned subsidiary, Shishi Simwa Knitting & Dye Co, Ltd, by three of its customers for a total compensation amount of RMB 466,047,380.00. Since then, the shares of the company have been suspended and the auditors have not been able to complete the audit. The auditors complained of not having access to the bank statements and have been unable to verify the cash at bank. This has been a serious concern to shareholders.
The company announced yesterday, 23 October 2017, that Mr Wu Xinhua will step down as Executive Chairman and CEO, but remains on the Board as Non-Executive and Non-Independent Director. The company has also recently appointed Mr Choo Han Kiat, Eric as Executive Director, who is tasked to take charge the overall management of the company and two new independent directors Mr Toh Tiong San and Mr Leow Yong Kin, all from Singapore were also appointed to the Board. The company has also reconstituted its committees. SIAS welcomes this move, which has been long awaited.
The new Board’s immediate task is to focus on completing the audit, hold the AGM and update the shareholders on the current status of the company, its operations and its plans moving forward without excuses to give them hope.
SIAS calls on the new Board to engage with shareholders, many of whom have suffered heavy losses and have not been appraised of developments in the company in the past.
Founder, President & CEO
Securities Investors Association (Singapore)