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Founder of Skyworth released on bail

By Hu Yang (chinadaily.com.cn)
Updated: 2009-07-07 15:46

Huang Hongsheng

Huang Hongsheng, founder and former chairman of Shenzhen-based TV maker Skyworth Group, was released on bail on July 4, the company confirmed in a statement posted on its website yesterday.

The news sent the Hong Kong-listed Skyworth Digital Holdings' shares to a 52-week high of HK$2.06 (27 cents) a share on Monday, which edged down later in the day to close at HK$1.93, rising 12.87 percent over the previous day. The company outperformed all other mainland-based home appliances companies listed in Hong Kong yesterday.

Analysts said the capital market was responding positively to Huang's release and expecting Skyworth to benefit from it.

But Zhang Xuebin, chairman of the board and CEO of Skyworth, said Huang's release would not have any implication on the company's operation, the Shanghai-based China Business News reported today.

"Huang Hongsheng is at home, and since his actions are still subject to certain restrictions, Skyworth hasn't studied plans on his comeback," Zhang was quoted by the newspaper as saying.

"He is neither a board member nor an executive, but only a shareholder. He hasn't given any instruction to Skyworth."

Zhang added that the rise of share prices mainly reflected investors' confidence, and had no obvious connection with Huang's release.

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The official statement of the company also noted Skyworth Digital is a listed company with good corporate governance and "its production, operation and management will not be influenced by any personal factor".

Huang is on parole and his six year sentence will not expire until 2010; therefore it is likely he will not go back to Skyworth, according to a source with knowledge of the matter. Huang is known to have other assets and may restart a new venture in the future, the source said.

During Huang's absence, professional managers have brought the annual revenue of Skyworth from HK$10.5 billion ($1.4 billion) in 2004 to HK$15 billion in 2008. It is unnecessary for Huang to step to the front of the stage again, said Lu Renbo of the China Electronic Chamber of Commerce.

But Huang, holding 40 percent of Skyworth shares, remains the largest shareholder of the company. His wife is an executive board member and one of the company's vice presidents.

Huang founded Skyworth in 1989 and the company went public in Hong Kong in 2000. Since then Skyworth has been in the leading place in domestic TV set production.

During his career peak, Huang was arrested by the Hong Kong Independent Commission Against Corruption in 2004, and in 2006 he and his brother Huang Peisheng each got six years in jail on charges including fraud and embezzlement.