Shares in Ports Design the international apparel retailer led by one of China’s most successfulhome-grown fashion industry entrepreneurs plunged by 38% in Hong Kong today after the company said that its chairman resigned followinga failure to report a number ofinterest-free advancesof funds to related parties. (See announcement here.)
Edward Tan “accepted full responsibility for failure to exercise proper procedures and controls resulting in breaches of Listing Rules” at the Hong Kong Stock Exchange and left the board the announcement said.
The company’s main force is Tan’s brother tw steel replica watch fake swiss iwc spitfire watch Alfred Chan. The two ranked No. 32 on the 2011 Forbes Hong Kong Rich List with wealth of $1.22 billion and Chan was a member of the 2010 Forbes China list of 25 Influential Chinese in Global Fashion.
Shares in a second company connected to Chan mall operator PCD Stores fell by 9.8% today in Hong Kong although it wasn’t tied to any of the rule violations at Ports.
Ports resumed trading in Hong Kong for the first time since March. (See initial story here. ) Investors and consumers alike have been hit hard over the years by irregularities large and small at China-related businesses. (See related story here about business ethics in the country.)
In a separate report yesterday Ports said yesterday sales in 2011 totaled 1.9 billion yuan or $302 million up from 16% from a year earlier. Net profit declined to 430 million yuan replica watches or $68 million from 471 million yuan a year earlier.
Ports competes at the mid-to-upper end of China’s fiercely competitivefashion market. U.S. fashion entrants inthe countryinclude Ralph Lauren Iconix Brands and Calvin Klein.
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