Nuoqi’s final dividend in doubt after chairman vanishes with 232m yuan

PUBLISHED : Tuesday, 05 August, 2014, 9:28am
UPDATED : Tuesday, 05 August, 2014, 9:32am

Fujian Nuoqi is unable to pay its final dividend for 2013 to shareholders, after its missing chairman withdrew 232.05 million yuan (HK$292 million) without authorisation, the Hong Kong-listed company said.

The payment of the final dividend is being reviewed and reconsidered by Nuoqi’s board, and the firm will make further announcements regarding the matter, Nuoqi announced on Monday night.

The fashion retailer, based in Quanzhou in Fujian province, had planned to pay a final dividend of 0.05 yuan per share, including tax, on Tuesday.

As the company has 601.8 million shares outstanding, it would have had to pay out a total final dividend of 30.09 million yuan.

Nuoqi reported the withdrawal of funds by its chairman and chief executive, Ding Hui, to Hong Kong and mainland police on July 28 and 29.

The firm reported to Hong Kong police on July 23 that Ding was missing. On July 25, Ding’s elder brother Ding Canyang took over the running of the company.

Nuoqi, founded by Ding Hui and his family, listed in Hong Kong in January at an offer price of HK$2.13. Its shares last traded at HK$1. The stock has been suspended since July 23.