KUALA LUMPUR: Bursa Malaysia Securities Bhd has publicly reprimanded HB Global Limited (HBGLOB) in respect of the company’s fourth quarterly report for the financial year ended 31 December 2016.
In a statement, Bursa Malaysia said the Q4 report, announced on 28 February 2017, was in contravention of paragraph 9.16(1)(a) of the Bursa Malaysia Securities Main Market Listing Requirements (Main LR).
The said paragraph states that a listed issuer must ensure that each announcement made is factual, clear, unambiguous, accurate, succinct and contains sufficient information to enable investors to make informed investment decisions.
Bursa Malaysia said HBGLOB had failed to ensure that the Q4 report took into account the adjustments announced on 28 April 2017.
HBGLOB was also required to review and ensure the adequacy and effectiveness of its financial reporting function and carry out a limited review on its quarterly report submissions.
“The limited review must be performed by the company’s external auditors for four quarterly reports commencing no later from the quarterly report for the financial period ended 30 June 2018.
“In addition, HBGLOB must ensure all its directors and relevant personnel attend a training programme in relation to compliance with the Main LR pertaining to financial statements,” the statement added.
Bursa Malaysia said while it has not found any of HBGLOB’s directors to have caused or permitted the breach by the company, it highlighted that it is the duty of the directors to maintain appropriate standards of responsibility and accountability in ensuring compliance of the Main LR.
The board of directors of HBGLOB at the material time were Shen Hengbao, Meng Xiangzhen, Sun Shimin, Yang Chin Shen, and Ho Pui Hold.
“Bursa Malaysia Securities views the contravention seriously as the timely and accurate submission of financial statements to enable investors to make informed investment decisions is one of the fundamental obligations of companies listed on the Official List of Bursa Malaysia Securities,” it said.
HBGLOB had reported an unaudited loss after tax and minority interest of RMB29,901,000 in its Q4 results ended Dec 2016 announced on 28 February 2017 as compared to an audited loss after tax and minority interest of RMB24,885,000 in the audited financial statements for the financial year ended 31 December 2016 (AFS 2016) announced on 28 April 2017.
The difference of RMB5,016,000 between the QR Dec 2016 and AFS 2016 represented a variance of 16.78 per cent.
“The adjustments were essentially due to the oversight by the company in the preparation of the management accounts and failure to ensure finalisation of the valuation report for impairment assessment prior to the announcement of the QR Dec 2016,” Bursa Malaysia said.