Fujian Shoes And Clothing Suffered Heavy Losses In London Second Board Market

Listed in the London alternative investment market (AIM, also known as the "second board market").

Camkids was suspended yesterday after its sponsor in London suddenly resigned and said it no longer represented the company.

Two directors of Mingwei shoes and shoes also resigned from the board because the company plans to pfer most of its cash to three distributors.

This summer, Mingwei shoes and clothing announced that the company would cancel the three distribution agreement due to the difficulty of trading conditions. It also indicated that it would like to buy a stock of about 28 million 500 thousand pounds (285 million yuan) from the distributor and then sell it at a discount.

The deal will run out of almost all cash in Mingwei shoes and clothing, which is estimated to be 57 pence per share.

Over the past year, more than a dozen Chinese holding companies in London's second tier market have been suspended or delisted because of the growing concern about corporate governance and cash management.

The London second board market has four companies from China's Fujian province. Since January this year, two have been suspended, and Mingwei shoes and clothing are third.

July of this year

NaibuGlobal was delisted, and three months ago, Nye's non executive executives in Britain launched legal action to regain control of the company's operations and bank accounts.

In February this year, the board of directors of Nye group admitted that it could not reach the executive management team of the company, including Chairman Lin Huoyan, who owns 53% of the company.

Nye was listed in April 2012, at a market value of 88 million pounds, and dropped to 90% in February this year.

Earlier this month, ChinaChaintek, also in Fujian, was suspended after the designated sponsor resigned.

Chun Tai United Co., Ltd. provides logistics services to local manufacturers. According to the London second board rules, the group needs to find an alternate sponsor within one month, otherwise its shares will be delisted.

Mingwei shoes and clothes landed on London's second board market on Christmas Eve. Chairman Zhang Congming owns 67% of the company's shares. The company enjoys preferential tax benefits because of its listing overseas.

Its share price has dropped from 88 pence per share to nearly 3 pence per share.

Yesterday, Jacques, chief financial officer of Mingwei footwear and NgPeiEng and non-executive director, Jacques-FranckDossin Frank announced his resignation because the company plans to repurchase inventory from the distributor.

Meanwhile, Allenby resigned as the sponsor of the company and was no longer responsible for the company's London second board.

Representatives of institutional contacts.

A few weeks ago, RichardSweet and MircleYap, two non-executive directors of Mingwei shoes and clothes, resigned from the board of directors because of objections to the company's investor strategy and dividend policy.

There are only two executive directors of the Ming Wei shoe and clothing board, and two are in China.