BELEAGUERED yarn maker China Gaoxian Fibre Fabric Holdings, which had a change of chairman just late December, on Thursday said two independent directors (IDs) have resigned. This means the number of IDs residing in Singapore has fallen below the minimum of two.
It said Sydney Yeung Kin Bond and Roberto Fabbri resigned with effect from Jan 6, 2016, due to "personal work commitments". The board "endeavours" to appoint at least 2 IDs residing in Singapore within two months.
In December, its non-executive and non-independent chairman Low Chai Chong resigned "due to heavy work commitments". He was replaced by 51-year-old Xie Ruliang, a China resident who is currently a venture partner of one SAIF Partners.
In 2014, China Gaoxian said 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. Notably, most of the firm's accounting books and records for the period before April 1, 2011 could not be found, the auditor said in a Singapore Exchange filing.
The management could not give "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.