China Gaoxian to resume trading on Sept 18 under new management, new investor

Mainboard-listed China Gaoxian Fibre Fabric Holdings, which supplies premium differentiated fine polyester yarn and warp knit fabric in China, announced that its shares will resume trading on Sept 18.

That is the day when the first tranche of a proposed investment by Fleur Capital (S) is scheduled to be completed.

A new board of directors will be constituted.

Mr Cao Xiangbin and his associates, including Mr Liu Yilin and Mr Chen Fen have also stepped down from their positions as directors, general managers, legal representatives and bank signatories of the group companies.

Fleur will be putting in place a new management team and appointing Mr Liu Dehuang as new chief executive officer and Ms Liu Minqin as new chief financial officer, respectively on Sept 18.

New legal representatives and general managers have also been appointed at the company's subsidiaries in China.

Shareholders are hoping the resumption of trading will put behind China Gaoxian's accounting scandal.

PwC was appointed as special auditors by China Gaoxian's audit committee on April 20, 2011 to conduct a review into the financial affairs of the China-based company, under the old management led by Mr Cao.

Although PwC have completed the review, they were not able to obtain the bulk of the China Gaoxian's accounting books and records for the period prior to April 1, 2011.

As a result, the special auditors were not able to reconstruct the group's accounts as at March 31, 2011 based on the limited information provided to them.

Interim chief executive officer Jerome Tham Wan Loong said in a statement on Sept 1 that he believes shareholders can expect the company to be steered towards a brighter future under new management.

"The journey over the past two and a half years has been challenging. I would like to thank our shareholders for their patience and unwavering support throughout this period," said Mr Tham.