Best World to prepare trading resumption proposal for submission to SGX RegCo 

BEAUTY products distributor Best World International will begin to prepare the proposal to resume trading of its shares for submission to bourse regulator Singapore Exchange Regulation (SGX RegCo), the company said in a bourse filing on Saturday (Jul 9). 

In an update to shareholders on the “future plans” of the company, Best World said that it has completed 2 equal access off-market  share buyback exercises since its update in November last year.

Both of these exercises were over-subscribed, and achieved the objective of providing Best World shareholders with a “certain level of liquidity and cash value” for their shares, the company said. 

These 2 exercises were part of the group’s efforts to provide shareholders with some liquidity or cash value for their shares as an interim measure while the stock remained suspended from trading on the Singapore Exchange, and while the company explored options for a delisting.

On Jun 16, Best World had also received an improved audit opinion from its independent auditor for its audited financial results for the fiscal year ended Dec 31, 2021. Best World is now of the view that there is “clarity” on the company’s financial statements. 

The company also reckons that the concerns raised by SGX RegCo in its regulatory announcement on Jul 23, 2020, could be “satisfactorily addressed” due to the implementation of all recommendations made by the independent accountant in the company’s independent review report, as well as the legal opinions and updates from Merits and Tree (Beijing) Law Office (M&T) and Dentons Beijing Office highlighting that  non-compliance risks of the group’s business model in China with regard to direct selling and ChuanXiao laws as being remote. 

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In a separate filing on Jul 8, an excerpt of the independent auditor’s report said that Best World believes the non-compliance risk of the group’s business model in China with regard to the direct selling and ChuanXiao laws continues to be remote. The possibility of the China authority commissioning any penalty on the group is also remote.

Accordingly, Best World does not consider it necessary to disclose any contingent liability pertaining to any penalty relating to potential non-compliance with the direct selling and ChuanXiao laws in China.

The group will, however, continue to assess the risk of any penalty imposed by the China authority relating to potential non-compliance with the direct selling and ChuanXiao laws in China, and will make the necessary disclosures at the end of the relevant reporting period if the risks of potential non-compliance cease to be remote. 

Best World said it will provide further updates to shareholders in the event of any material development regarding the trading resumption proposal.