You are here

Suspended Midas Holdings releases eight-month plan to resume trading in its shares

RAILWAY parts maker Midas Holdings, which faces a delisting by the Stock Exchange of Hong Kong, has laid out an eight-month timetable to get on track to resume trading.

The board said on Tuesday that Midas "has been proactively following up and implementing" certain actions to meet trading resumption conditions that the Stock Exchange of Hong Kong imposed on May 25. These conditions include the company showing that it has enough operations and assets to stay listed, as well as publishing outstanding audit results.

Trading in Midas shares has been suspended since February in both Singapore and Hong Kong, with auditor Mazars LLP citing undisclosed liabilities and litigation, among other issues. The board has also announced finding developments such as round-tripping and unrecorded loans in its subsidiaries.

The board warned in early May that the company cannot operate as a going concern, while Mazars disavowed the reliability of its reports for the years 2012 through 2016.

Probes involving the authorities in Singapore and China are under way. Four units have been placed under judicial management and the finance department of another has been sealed up, which Midas said means no audit arrangement can be made for the results and report for the year to Dec 31, 2017.

Your feedback is important to us

Tell us what you think. Email us at

Midas has now released an expected timeline to maintain a satisfactory level of operations or assets.

The action plan provided by the board would give about two months for the judicial managers to finalise the new audit for the troubled subsidiaries, followed by two months to prepare financial statements, two months to submit the information to external auditors to complete a year-end audit, and two more months for the annual report to be prepared.

Midas added that it would, "from time to time", discuss options to resuscitate the group with potential buyers and review and assess the impact of the outcome of ongoing investigations to the company, as well as pursue  loss recovery if possible.

As for when trading would resume, that "depends on the above events", the company said.

These plans come on top of what the company has already been doing, it noted in its announcement.

It said that the actions that it has taken include finding irregularities and assessing their impact, following up with the relevant authorities on the investigation of issues raised by the board, talking to Singapore and Chinese lawyers about the irregularities and litigation, and talking to the judicial managers about their audit reports.

Under listing rules, the Hong Kong bourse may cancel Midas' listing if trading stays suspended for 18 straight months from Wednesday, when amendments to the delisting framework are set to kick in.

Trading "will remain suspended until further notice", Midas said on Tuesday. "The board will issue further announcements as appropriate, as and when there are any material developments in the matter."

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to