The billionaire Taiwanese founder of autoparts producer Minth is stepping down as chairman just weeks after the company’s stock plunged over regulatory concerns.
As Chin Jong Hwa, 57, relinquishes his role as head of the board, his daughter Chin Chien Ya, 27, is being appointed an executive director of the Chinese-based company.
Last month, Minth’s Hong Kong-listed stock suffered a record 20% drop after authorities in the Chinese special administrative region’s Securities and Futures Commission said the company had made inaccurate disclosures over two recent acquisitions.
According to a Bloomberg report, Minth’s purchase of two companies from Chin Jong Hwa’s nephew and niece were, among other things, “not genuine” and “void or voidable”.
Speaking to media at the time, one analyst said the issue “related to the behaviour or integrity of the chairman”, who is among the many Taiwanese businessmen whose operations in mainland China have grown significantly in line with the country’s economic expansion.
Minth, which is based in the city of Ningbo and has plants in China, South East Asia and North America, can trace its history back to 1992, and from the late 1990s secured contracts to supply major carmakers such as Volkswagen, General Motors, Mazda and Honda. It listed in Hong Kong in 2005 and Chin Jong Hwa, whose wealth is put at $1.26 billion, holds a 40% stake. He is retaining a seat on the Minth board and will become honorary chairman, Forbes reported.
His Harvard-educated daughter is currently working for Minth’s North American operations after joining the group in 2015.
Hong Kong regulators are said to want Chin Jong Hwa to pay millions of dollars to a subsidiary over the disputed takeovers, and are seeking that he and other figures at Minth be banned from holding directorships and other senior roles at companies in Hong Kong.
As well as structural parts, Minth also produced exhaust pipes and seat frames, among other things. Major customers have included Fiat, BMW, Ford, Suzuki, Toyota, Mitsubishi and PSA Group, which owns the Peugeot and Citroen brands.