Sportswear retailer Pou Sheng sacks finance chief, stock down 37%

[HONG KONG] Sportswear and footwear retailer Pou Sheng International (Holdings) said it had sacked its chief financial officer over false sales records and its chief executive officer had resigned.

Shares of Pou Sheng, a unit of Yue Yuen Industrial Holdings , fell as much as 37 per cent on Monday morning to HK$1.30, the lowest since Jan 28 , 2016. Shares of Yue Yuen plunged 8.4 per cent.

That compares with a 0.1 per cent gain in the benchmark index .

Pou Sheng said it discovered "incorrect sales records" in December, which could potentially lead to recognition of revenue for sales transactions that did not take place before the end of 2016.

The amount of sales was not significant but it revealed weak financial controls, it said in a filing to the Hong Kong bourse late on Sunday.

The company said it terminated the employment of chief financial officer Chen Kuo-Lung on Jan 6 while chief executive officer Kwan Heh-Der had resigned.

The incident and departures of the executives had not created any material adverse impact on the daily business operations of the company, Pou Sheng added.

REUTERS