Trade Shares or Stocks in Bursa Malaysia|How to start Trading | Trade Stocks in Bursa Malaysia | How to Open Trading Account | How to Open CDS Account | What is Collateralised Trading | Discretionary Financing | Share Margin Financing | CDS Share Transfer | Securities Borrowing and Lending (SBL) | Regulated Short Selling (RSS) | Brokerage | Internet Trading Brokerage Discount | Cash Upfront Brokerage Discount | Clearing Fees | Contract Stamp Duties | Bursa Malaysia | Composite Index | Bursa News | Listed Companies News | Market News | Market Outlook

The group’s boss and major shareholder, Hwang Ding Kuo@James Hwang, says he will only return to Malaysia once he is healthy

Kenmark Industrial Co (M) Bhd (7030) said its boss and major shareholder, who was missing as the group’s fortunes took a rapid turn for the worse, is sick in China.

In a statement sent to Bursa Malaysia through the company’s secretary yesterday, Hwang Ding Kuo@James Hwang said he was taken ill in China on May 24 and was in a delirious state.

“It was only yesterday (Tuesday) I regained full consciousness but am still weak to travel,” he said. He did not identify the nature of the sickness nor did he say when he expects to be well.

Hwang will only return to Malaysia once he is healthy.

Hwang also said he could not be reached by telephone as all calls had been barred by family members.

However, he said a friendly party has bought a substantial stake in the company and new appointment of directors will be made, including two executive directors to manage the current situation.

Hwang did not give details of the deal.

“I wish to state I am still the managing director of Kenmark and will work together with the new shareholder to try and resolve all outstanding issues caused by my sudden absence,” Hwang said.

He also did not state the current whereabouts of two other Taiwanese executive directors Chang Chin-Chuan and Chen Wen-Ling who were also said to be missing.

The new directors to be appointed are Ho Soo Woon, Ahmed Azhar Abdullah, Woon Wai En and Abdul Gani Yusof.

They will also review the company’s situation in Vietnam.

“I have spoken to Ho to have him discuss with Bursa Securities for a time extension to announce the fourth quarter results and appoint a special auditor,” Hwang said.

Over on the stock market, Kenmark’s shares were suspended at 4.43pm yesterday and they will remain so indefinitely, according to Bursa Malaysia.

Before the suspension, its shares were among the most active when it almost doubled to 11.5 sen from 6 sen previously.

Since news broke that Hwang went missing, Kenmark lost as much as RM140 million in stock market value in a matter of days while more than 400 of its workers were uncertain about their future.

Even the Securities Commission will investigate the furniture maker, while Bursa Malaysia directed Kenmark to appoint a special auditor to probe its finances.

Kenmark’s shocking story started on May 31 when its shares tumbled 68 per cent, leading to a query from Bursa Malaysia. The group said that its two independent directors could not contact Hwang while key executives have quit.

It also cannot issue the fourth quarter results for the period to March 31 2010.

The independent directors were told by former executives that all of its operations have stopped while two banks demanded some RM73 million of their money back.

To make matters worse, it immediately became a PN17 company, a label of financially troubled firms on Bursa Malaysia.

Meanwhile, Kenmark’s external company secretary Leong Oi Wah when contacted confirmed the independent directors will still meet with the company’s receiver, PricewaterhouseCoopers, as planned on Friday to determine the actual debt of the company.

Related Posts:

• Kenmark update : SC freezes Ishak’s gain
• MK Land profit up and new CEO
• Bursa fined Missing Kenmark Directors
• Kenmark to suspend on August 9, 2010
• Kenmark under receivership, share plunged 68%

Shares of Kenmark Industrial Co (M) Bhd were suspended after plunging 68%, or 22 sen, to 10.5 sen on news that the company’s premises had been sealed, a receiver would be appointed for its paper business and its Taiwanese major shareholder, who is the managing director, had not been contactable since last Tuesday.

Two independent directors – Zainabon @ Zainab Abu Bakar (who is also chairman of the company) and Yeunh Wee Tiong – met up with Bursa Malaysia officials yesterday morning to explain the situation and were told by the exchange to make the necessary and relevant disclosures.

“We met with the independent directors, external auditors and officials of Kenmark and stated our concern on the affairs of the company.

“The exchange is closely monitoring the situation and engaging with them on their actions,’’ a Bursa official said in a statement to StarBiz.

Bursa Malaysia issued an unusual market activity (UMA) query yesterday over the sharp fall in Kenmark’s share price and high transaction volume. Kenmark shares fell 19 sen to 14 sen by 9.15 am yesterday and dropped another 3.5 sen before it was suspended at 10.10 am. The stock closed at 10.5 sen on a volume of 71.9 million shares traded.

Trading in the shares will resume today.

Kenmark, in response to the UMA, said Goh Kim Chon the deputy general manager, and the finance and administration manager had resigned from the company and, therefore, the financial results were not presented at the audit committee meeting.

The independent directors of the audit committee, namely Zainabon and Yeunh, were the only directors present at the audit meeting last Thursday. The managing director, James Hwang, and Goh, who were the usual management representatives to the audit committee meeting, did not turn up for the meeting.

“It was then found out that the deputy GM had already resigned and the managing director was uncontactable.

“The audit committee meeting could not proceed as there was no representation from management and the fourth quarter results that was to be discussed was not made available.

“The independent directors tried to contact Hwang on his mobile phone but was unsuccessful. Attempts to contact the MD and executive directors at the Taiwan office via telephone and fax failed,’’ Kenmark told Bursa in its reply.

Not satisfied with what was going on, Zainabon and Yeunh visited the company’s premises at Port Klang last Saturday but found it guarded and sealed.

However, on Wednesday, some suppliers had recovered their stock and raw material from the company premises.

EON Bank Bhd, one of the creditors, had placed its own security guard at the premises. Kenmark told Bursa that the bank would appoint a receiver to take over the assets of the company. This was conveyed to Kenmark Paper Sdn Bhd, a wholly-owned subsidiary, by EON’s solicitors via a letter dated May 28.

At group level, total borrowings stand at RM143.5mil and it has cash reserves of US$284,000, according to its 2009 annual report.

Hwang, who is the major shareholder and MD, holds a 27.61% equity stake in Kenmark.

Three other directors who are also Taiwanese – Huang Ching Hsiang and Chen Wen-Ling (both non-independent non-executive directors) as well as Chang Chin-Chuan, (executive director) are not contactable, the company told Bursa yesterday.

Chen has an 18.7% equity stake while Chang holds a 0.14% stake in the company. Collectively, the three hold 46.45% equity stake in Kenmark.

Hwang and Huang are brothers, as per the company’s 2009 annual report.

Kenmark’s website states that the company is involved in the manufacturing of computer workstations and cabinets, furniture, printing of packaging materials and distribution of consumer products, as well as investment holding.

It is also into plastic injection for furniture parts, and assembly and distribution of liquid crystal display.

The company’s corporate office and factories are located at Lot 11, Lingkaran Sultan Muhamed, Kawasan Perindustrian Bandar Sultan Sulaiman, Port Klang. Kenmark had also relocated part of its manufacturing facilities to Vietnam to take advantage of its relatively cheap and abundant labour force.

The four Taiwanese directors were not contactable even at the Vietnam office and Hwang has not been reachable since May 25, the statement said.

Related Posts:

• Bursa fined Missing Kenmark Directors
• Kenmark to suspend on August 9, 2010
• Kenmark update : SC freezes Ishak’s gain
• Kenmark CEO ill in China