KUALA LUMPUR (Aug 18): Bursa Malaysia has publicly reprimanded electronic manufacturing services (EMS) provider PIE Industrial Bhd (KL:PIE) and fined two of its directors a total of RM150,000 for failing to immediately disclose material information on a major customer contract.
The directors involved were managing director Mui Cheng Meng, who was fined RM100,000, and executive director Lan Kuo Yi, who was fined RM50,000, after the stock exchange regulator found that they had permitted the breaches under the Main Market Listing Requirements (Main LR), Bursa said in a statement on Monday.
The public reprimand relates to a contract secured on March 31, 2024, with a major overseas customer in the servers and switches segment by the group’s wholly owned subsidiary, Pan-International Electronics (Malaysia) Sdn Bhd (PIESB).
The deal involved dedicating PIESB’s largest 280,000 sq ft facility to the customer, with pilot production targeted for end-2024, mass production in 2025, and expected revenue of RM2.5 billion across the financial years ending Dec 31, 2025 (FY2025) and FY2026.
According to Bursa, PIE only announced the contract on April 19, 2024, and disclosed the expected revenue on April 23, 2024.
Prior to these announcements, however, Mui had shared details of the contract with Kenanga Investment Bank Bhd on April 17, 2024 and The Edge Malaysia on April 18, 2024 in breach of Paragraphs 9.08(2) and (5) of the Main LR.
Bursa said the findings and penalties were imposed under Paragraph 16.19 of the Main LR after due process, which took into account the materiality of the breaches, their impact on shareholders and investors, and the directors’ roles, knowledge and conduct.
“Bursa Malaysia Securities views the contraventions seriously, as timely disclosure of material information that might affect investors’ interests is key to a transparent, orderly and fair market.
“Further, the obligation to ensure no selective disclosure is of paramount importance to ensure fairness and equal access to material information regarding the business and affairs of listed companies towards maintaining investor confidence and market integrity,” it said.
Bursa said it has also reminded PIE Industrial and its board of directors of their responsibility to maintain the appropriate standards of corporate responsibility and accountability to its shareholders and the investing public.
Shares of PIE Industrial closed down one sen or 0.27% at RM3.66 on Monday, giving it a market capitalisation of RM1.41 billion. Year-to-date, the counter has fallen over 39%.