REGULATORY ACTION BY FINANCIAL SERVICES COMMISSION OF KOREA 

 

 

Reference is made to the Company's announcement dated 3 October 2013 (" Announcement" ). Terms 

not otherwise defined herein shall have the same meanings as ascribed to them in the Announcement. 

 

Further to the Announcement, the Company has received the formal Notice of Decision to Impose Fine 

(" Notice" ) from the Financial Services Commission of Korea (" FSC" ) on 14 October 2013 imposing a fine 

of KRW 2 billion (approximately S$2,326,000) (" Fine" ) on the Company. The basis for the Fine, as stated 

in the Notice, include: 

 

(a) that the Company exaggerated its cash and cash equivalents as at end September 2010, being 

the time of its Korean Listing, in its securities registration statement submitted to the FSS 

(" Securities Registration Statement" ) as the expenditure for the construction and development 

of the polyester polymer production facility and the office building in Huzhou City, Zhejiang 

Province, PRC (" Huaxiang Project" ) were not included  

 

(b) that the Company misrepresented its investment risk factors in the Securities Registration 

Statement, such as (i) it had RMB 593 million in cash and cash equivalents as at end September 

2010 and (ii) its financial strength index was continuously improving, with a liquidity ratio of 

487.01% as at end September 2010 and 

 

(c) that the Company violated its reporting and disclosure obligations by misrepresenting material 

information in its Securities Registration Statement, such as its failure to disclose material terms, 

estimated costs and means of financing for the Huaxiang Project. 

 

The Company is in the process of seeking legal advice on the Notice and its options include: 

 

(a) making an appeal to the FSC within 30 days of the Notice  

 

(b) filing an administrative action with the FSC or the Administrative Appeals Commission within 90 

days of the Notice or 

 

(c) filing an administrative action with the Administrative Court in Korea within 90 days of the Notice. 

 

The Company will update Shareholders of any further material development of the above in due course. 

 

 

 

 

By Order of the Board 

 

Abdul Jabbar Bin Karam Din 

Company Secretary 

16 October 2013