Singapore-listed beauty and wellness group Mary Chia Holdings has admitted that it failed to disclose outstanding Central Provident Fund (CPF) contributions and court proceedings involving four subsidiaries, prompting questions from Singapore Exchange Regulation (SGX RegCo) about its internal reporting procedures.
In a response dated Oct 9, the Catalist-listed company attributed the omissions to weaknesses in its internal information consolidation and disclosure assessment processes.
The company had previously disclosed CPF arrears involving one subsidiary in an announcement on Sept 11, but did not include similar issues affecting four other subsidiaries, even though its chief executive was aware of the court notices.
The disclosure lapse has placed the group’s internal controls under scrutiny as it works to settle outstanding CPF contributions and address broader financial pressures.
CPF arrears total $103,727 across five subsidiaries
Following a reconciliation by the CPF Board, Mary Chia reported that outstanding CPF contributions across its five subsidiaries totalled $103,727 as at Oct 9.
The amount was lower than the approximately $153,000 cited during a court hearing on Oct 8, after accounting for payments and updated calculations. The revised total excludes late-payment interest and composition sums.
The five subsidiaries involved are:
- Mary Chia Beauty & Slimming Specialist
- Organica International Holdings
- Masego
- Spa Menu
- Urban Homme Face & Body Studio for Men
Mary Chia Beauty & Slimming Specialist accounted for the largest outstanding amount, at $52,266. Organica International Holdings owed $25,248, while Masego had $11,341 outstanding.
Urban Homme Face & Body Studio for Men owed $9,847, and Spa Menu had $5,025 in outstanding contributions.
The CPF Board had issued nine separate notices requiring the subsidiaries to attend court. Their cases were heard together on Sept 10 and Oct 8, and were adjourned to Nov 12.
CEO knew of court notices, directors informed later
Mary Chia said its chief executive, Ho Yow Ping, and its human resources manager were aware of the relevant court notices when they received them.
However, the company said its two current independent directors, Chay Yiowmin and Foo Say Tun, learnt of the outstanding contributions and court proceedings involving the four other subsidiaries only on Oct 8, after management updated the board following that day’s hearing.
The company explained that its earlier disclosure assessment had focused mainly on Mary Chia Beauty & Slimming Specialist. It acknowledged that it had not comprehensively assessed similar issues across the other group entities.
The omission prompted SGX RegCo to seek clarification about why the information had not been disclosed in the Sept 11 announcement and when the company first became aware of the cases.
Company says payments are being made
Mary Chia said its subsidiaries had been making progressive payments towards the arrears under arrangements communicated by the CPF Board since June 2026.
The group reported that approximately $29,734 was paid on Oct 6 and 7.
It also disclosed that September 2026 CPF contributions amounting to about $12,570 remained outstanding across three subsidiaries, with payment due by Oct 15.
The subsidiaries intend to propose an instalment arrangement for the remaining arrears after settling those contributions.
Mary Chia has said the arrears arose from administrative lapses rather than an inability to pay. The company is reviewing its internal reporting and disclosure procedures, including how statutory liabilities and legal proceedings are escalated to management, the board and its continuing sponsor.
Earlier disagreement over disclosure
The latest admission follows a disagreement between Mary Chia and its stock exchange sponsor, Evolve Capital Advisory, over whether the court proceedings involving Mary Chia Beauty & Slimming Specialist should have been disclosed earlier.
The subsidiary faced 10 charges relating to failures to pay CPF contributions for 10 employees for September 2025. In September, the court was told that $50,208 remained outstanding after a partial payment of $11,291.
Mary Chia had initially regarded the matter as an operational payroll-compliance issue that was being rectified. Its sponsor took the position that the court proceedings represented a significant escalation and warranted prompt disclosure to investors.
The company has since acknowledged weaknesses in its internal assessment and information-sharing processes.
Financial challenges add to scrutiny
The CPF disclosure issue comes as Mary Chia faces wider financial difficulties, including a dispute with corporate lender Fullink Capital involving a $350,000 loan extended to Organica International Holdings and guaranteed by the listed group.
The company also reported an expected net loss for the financial year ended March 2026, citing weaker revenue from its Taiwan operations, higher operating costs and increased finance expenses. Its auditor issued a disclaimer of opinion on its FY2026 financial statements.
For investors, the latest development raises questions about the effectiveness of the group’s internal controls and its ability to manage statutory obligations while addressing financial pressures.
Mary Chia said it would strengthen its reporting procedures and the escalation of material matters. Its subsidiaries’ court cases are scheduled to return on Nov 12, while the company continues to work towards settling the outstanding CPF contributions.
