Wison Engineering Services Says Billionaire Founder Hua Bangsong Assists With China Corruption Probe on its business relationship with PetroChina

Wison Says Founder Hua Bangsong Assists With China Probe

Wison Engineering Services Co. said its controlling shareholder Hua Bangsong is helping China’s authorities with their investigations, amid a corruption probe into its one-time largest client PetroChina Co. Wison has been informed that Hua “is now assisting the relevant authorities in the PRC in their investigations,” the company said today in a Hong Kong stock exchange filing. Wison fell 16 percent yesterday before its shares were halted. The company said it noted recent press reports on its business relationship with PetroChina Co., the country’s biggest oil and gas producer whose former chairman Jiang Jiemin and four other senior executives are being investigated by the government. Wison provides consulting, engineering and construction services to chemical factories and oil refineries.In its 2012 listing document, Wison said it had a nine-year business relationship with PetroChina, its largest client. In the three years ending 2011, Wison said its revenue from PetroChina and its subsidiaries amounted to 63 percent, 80 percent and 58 percent of its total, according to the document. In the six months ended June 30, 2012, revenue from PetroChina was 14 percent.

“The group’s revenue recognized from contracts with PetroChina and its subsidiaries for the six months ended June 30, 2013 was insignificant,” Wison said in the statement today, adding that the company is operating normally.

PetroChina’s Beijing-based spokesman Mao Zefeng did not answer two calls to his office seeking comment. A Wison spokesman was not available to answer questions, said a person who answered the office line at Wison’s Corporate Communications Department in Shanghai. Wison did not respond to an e-mail.

Sold Shares

Hua, also Wison’s founder, became a billionaire after the company sold shares in Hong Kong in December. He and his wife Huang Xing own 79 percent of the company, according to its listing prospectus.

Hua began his career as a salesman at a metal screen factory in Xinghua in eastern China’s Jiangsu province. He later started a company that made petrochemical machinery and accessories, as well as supplying raw materials for the oil industry. In 1997, he established Wison Engineering.

Wison, which has more than 3,000 employees in China, Hong Kong, Saudi Arabia and the U.S., saw revenue in the first half rise 131 percent to 1.99 billion yuan, according to data compiled by Bloomberg.

To contact the reporter on this story: Aibing Guo in Hong Kong at aguo10@bloomberg.net


About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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