Best World International, known for its direct selling business of beauty and health products, has applied for its shares to resume trading on the Singapore Exchange.
The company’s shares have been suspended since 2019 after the company first came under attack by short seller Bonitas Research, and following which, questions were raised over its business model in China.
The company, on Oct 2 said it has submitted a trading resumption proposal to the exchange.
The possibility of resumption of trading was mooted by the company in an update on July 9.
Back then, the company said that it has on June 16 received an “improved audit opinion” from its independent auditor for its earnings ended Dec 2021.
“As a result of the improved audit opinion, the company is of the view that there is clarity on the financial statements of the company,” noted Best World then.
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In addition, with the company has implemented recommendations made by the independent accountant in the independent review report.
Also, citing the legal opinions and updates its lawyers, the “noncompliance risks of the group’s business model in China with regards to direct selling” as being “remote”.
As such, Best World believes that it has “satisfactorily addressed” concerns raised by SGX RegCo.
On Aug 11, the company reported earnings of $38.9 million the three months ended June, down 1.2% y-o-y. Revenue in the same period was down 13% y-o-y to $130.5 million.
