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Qiao Xing Mobile Communication Company (Mobile) announced on May 2 that Tan Kok Seong had resigned as CFO of the Company for personal reasons, effective immediately. The company is seeking a replacement.
Mobile reported on April 30 that it would miss the US Securities and Exchange Commission’s annual report filing deadlines. In the trading day following CFO Tan’s resignation, Mobile's stock fell from $0.61 a share to $0.48 a share before trading was halted. The Nasdaq had previously sent them a letter in December warning them if their six-month price average came in below $1 they would halt trading.
Further, the audit committee chairman of their parent company, Qiao Xing Universal (Xing), Edward Tsai resigned on April 18 based on a disagreement with other directors over the conduct of an investigation, according to filings with the SEC.
Tan’s resignation comes after a number of companies affiliated with company founder, Wu Rui Lin, ranked 122 on Forbes’ richest Chinese list, have had trading of their shares halted in the US and Hong Kong. The three publicly listed companies being Xing and Mobile on the Nasdaq, and Real Gold Mining listed in on the Hong Kong Stock Exchange.
Rui Lin’s son, Zhi Yang, is listed as chairman of both Mobile and Xing, according to most recent SEC filings. Rui Lin is a founder of all three companies. He is currently under investigation by the Hong Kong Securities and Futures Commission regarding a loan of HK$955 million from Real Gold Mining to Top Lucky, a company he wholly owned, for acquisitions of Mongolian phosphorous mines and not paying it back, amongst other violations.
Tan joined Mobile in September 2006. He worked on independent audit committees and for an independent French consulting company for a few years, but prior to that he worked as a senior manager at Ernst & Young Hua Ming in Beijing, having come from Ernst & Young’s Singapore office where he started in 1995. Tan is a Singapore certified public accountant.