China Gaoxian

[CityFarmer]

Korea FSC fine is pretty high, more than S$2 mil for non-disclosure and misrepresentation, compares with Singapore SGX of $240K.

REGULATORY ACTION BY FINANCIAL SERVICES COMMISSION OF KOREA

Reference is made to the Company's announcement dated 3 October 2013 ("Announcement"). Terms not otherwise defined herein shall have the same meanings as ascribed to them in the Announcement.
Further to the Announcement, the Company has received the formal Notice of Decision to Impose Fine ("Notice") from the Financial Services Commission of Korea ("FSC") on 14 October 2013 imposing a fine of KRW 2 billion (approximately S$2,326,000) ("Fine") on the Company.

Ref: http://infopub.sgx.com/FileOpen/CGX_Regu...eID=259835

[CityFarmer]

After the new investment fund of S$27 mil, or about RMB 130 mil on Huaxiang Project, addition fund facilities needed, a 4-year syndicated loan facility of RMB 500 mil.

It is a huge project which might require fund of more than RMB 630 mil, excluding equipment leasing financing scheme. What a bet. Will the future return sufficient to cover the interest expense of 6.72%, and the debts?

(not vested)

Ref: http://infopub.sgx.com/FileOpen/CGX-SGXQ...eID=270383

[greengiraffe]

China Gaoxian's accounts in doubt due to missing info

Published on Apr 07, 2014



By Melissa Tan

SCANDAL-HIT China Gaoxian Fibre Fabric Holdings said last week that its independent auditor has given a "qualified" opinion on the company's financial statements.

Auditor Foo Kon Tan Grant Thornton said missing information from previous years could have affected the accounts for the year ended Dec 31, 2013.

The bulk of the firm's accounting books and records for the period before April 1, 2011 could not be found, the auditor noted in a Singapore Exchange (SGX) filing.

The management could not give a "satisfactory explanation" for differences between management accounts provided for audit and the audited statements of its Chinese units that were filed with Chinese authorities, it added.

As it could not assess the impact of those gaps on last year's financial statements, it had to qualify its opinion.

But except for those "possible effects", the firm's financial statements were properly drawn up in accordance with Singapore financial reporting standards, the auditor said. China Gaoxian, which makes fabric, was hit by an accounting scandal after previous auditors Ernst & Young could not verify bank balances in its units for the year ended Dec 31, 2010.

PwC was later appointed as special auditors by China Gaoxian's audit committee to review its financial affairs. The firm has been mired in red ink for a while. It told the SGX last month that it had made pre-tax losses for three consecutive years.

It posted a loss of 215.4 million yuan (S$44 million) for the 12 months to Dec 31 last year, worse than the 86.5 million yuan loss the year before.

Revenue also fell 45 per cent to 271.7 million yuan last year.

However, it may be starting this year on a clean slate.

Boutique asset manager Fleur Capital pumped $27 million into China Gaoxian in October last year, saying that it liked the company's fundamentals and was satisfied with due diligence results.

Later that month, China Gaoxian and former key staff were fined by the South Korean financial regulator over disclosure failures relating to its South Korean listing in 2011. The Financial Supervisory Services of Korea fined the firm 2 billion won (S$2 million). Former executive chairman Cao Xiangbin was slapped with a 50 million won fine, while former chief financial officer Raymond Wong was fined 16 million won.

China Gaoxian's shares closed flat at 3.1 cents on Friday.

melissat@sph.com.sg

[cyclone]

Major corporate action, what is it ? RTO ?

The Board of Directors of China Gaoxian Fibre Fabric Holdings Ltd. wishes to announce that the Group is in preliminary discussions with potential party(ies) with respect to a proposed major corporate action of the Group.
There is no assurance that any such discussions will result in any definitive agreement or transaction.