KUALA LUMPUR (Sept 19): Bursa Securities has publicly reprimanded China-based frozen food manufacturer HB Global Ltd for failing to ensure its fourth-quarter report for its financial year ended Dec 31, 2016 (4QFY16) takes into account adjustments announced on April 28, 2017.

In a statement today, Bursa Securities said while it has not found any of HB Global’s directors to have caused or permitted the breach by the company, it is their duty to maintain appropriate standards of responsibility and accountability so as to ensure compliance to the Main Market listing requirements.

As such, all of its five directors are required to attend a training programme in relation to compliance with the Main Market listing requirements pertaining to financial statements.

They include Shen Hengbao, Meng Xiangzhen, Sun Shimin, Yang Chin Shen and Ho Pui Hold.

HB Global is also required to review and ensure the adequacy and effectiveness of its financial reporting function and carry out a limited review on its quarterly report submissions.

"The limited review must be performed by the company’s external auditors for four quarterly reports, commencing no later [than] from the quarterly report for the financial period ended June 30, 2018," Bursa Securities said.

HB Global had reported an unaudited net loss of RMB29.9 million in its 4QFY16 results announced on Feb 28, 2017, as opposed to an audited net loss of RMB24.89 million in the audited financial statements for FY16 announced on April 28 the same year.

"The difference of RMB5,016,000 between the 4QFY16 and audited financial statements for FY16 represents a variance of 16.78%.

"The adjustments were essentially due to oversight by the company in the preparation of the management accounts and failure to ensure finalisation of the valuation report for impairment assessment, prior to the announcement of 4QFY16 results," Bursa Securities explained.

"Bursa views the contravention seriously, as the timely and accurate submission of financial statements to enable investors to make informed investment decisions is one of the fundamental obligations of companies listed on Bursa Malaysia," the statement added.

HB Global shares closed unchanged at 8.5 sen today, with 544,400 shares done, bringing a market capitalisation of RM39.78 million.