SGX RegCo reprimands Dapai International over fake sales

The company faked the opening and expenses of 500 retail stores in China.

The Singapore Exchange Regulation (SGX RegCo) reprimanded Dapai International Holdings (Dapai), its executive chairman Chen Xizhong, former CEO Chen Yong, and former CFO Lawrence Lam Pong Sui for breaches of the listing rules.

According to an announcement, Dapai made non-factual, false and misleading statements on various transactions by the Dapai Group and the proposed opening of 500 outlets in the People’s Republic of China.

Dapai also made false statements in its 2009 and 2010 annual reports that the system of internal controls maintained by its management throughout the financial years ended 31 December 2009 and 31 December 2010 was adequate to meet the needs of the group in its current business environment.

The company also had no procedure in place to keep track of how and when the 500 retail outlets were started. “There was also no proper centralised documentation in place, the journal entries on payment to distributors and contractors were brief and poor controls were prevalent for the opening of the 500 retail outlets,” SGX RegCo added.

The regulator said that Chen Xizhong, Chen Yong, and Lawrence Lam Pong Sui failed to demonstrate the character and integrity expected of directors and management of listed issuers. “SGX-listed companies are advised to consult SGX RegCo before they appoint Chen Xizhong, Chen Yong, and Lawrence Lam Pong Sui as a director and/or management,” it added.

SGX RegCo said it has referred the case to the relevant authorities.

Also Read

Support for bans on plastic items strong across various age groups

8 suburban areas to watch for retail investment

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit