SINGAPORE – Five companies under financially-embattled beauty and wellness group Mary Chia Holdings owed a combined $152,932 in outstanding Central Provident Fund (CPF) contributions, the State Courts heard on Oct 8.
The wholly-owned subsidiaries collectively owed over $182,600, but made payments totalling $29,742 on Oct 7.
The five companies are Mary Chia Beauty & Slimming Specialist, Masego, Organica International Holdings, Spa Menu and Urban Homme Face and Body Studio for Men.
The largest arrears are by Mary Chia Beauty & Slimming Specialist, at $61,594, after it made a payment of $3,827.
Spa Menu owed $33,092 after paying $4,472, while Organica had $31,253 outstanding after paying $9,446.
Masego, which paid $6,918, still owed about $14,828, while Urban Homme Face and Body Studio for Men had $12,165 outstanding after making a payment of $5,079.
A CPF Board representative told the court that the board would consider a formal instalment payment plan only after the companies had made payments for a certain number of months, without specifying how many.
The five companies were represented by lawyer Manfred Lum of Dentons Rodyk & Davidson.
All five cases were adjourned to Nov 12.
Mary Chia Holding’s executive chairman and chief executive Ho Yow Ping is a director of all five companies.
About a month ago on Sept 10, Mary Chia Beauty & Slimming Specialist appeared in the State Courts over 10 charges of failing to pay CPF contributions for 10 employees for September 2025.
The court heard that the company still owed $50,208 in CPF contributions, after making a partial payment of $11,291 on Sept 9.
A company representative had told the court that an arrangement was in place to make current CPF payments while clearing one month of arrears at a time.
Reviewing CPF records after worker feedback
Mary Chia Holdings disclosed on Sept 11 that it had begun reviewing its CPF records after receiving employee feedback around September 2025 about possible omissions involving variable-income components.
The company said it subsequently discovered similar discrepancies in some subsidiaries and submitted rectification reports to the CPF board.
It attributed the arrears to administrative lapses rather than an inability to pay.
The disclosure also prompted a disagreement between Mary Chia Holdings and its stock exchange sponsor, Evolve Capital Advisory, over whether the court proceedings should have been announced to investors earlier.
Evolve said the proceedings represented a significant escalation of a compliance issue and should have been promptly disclosed.
Amid mounting financial and legal challenges
The Catalist-listed group is also embroiled in a dispute with corporate lender Fullink Capital over a $350,000 loan extended to Organica and guaranteed by Mary Chia Holdings.
Fullink had commenced two insolvency applications against Mary Chia Holdings and Organica, and two bankruptcy applications against Ho and former group chief financial officer Su Ju Ming.
On Sept 30, the High Court paused the insolvency proceedings pending the transfer of $651,498.97 into court as security.
Mary Chia said the funds were already with its solicitors and that the insolvency proceedings would be dismissed once the money was received by the court.
The group maintained that providing the security did not amount to an admission of liability for Fullink’s disputed claims.
The secured sum will remain in court as security until the final legal determination of Fullink’s remaining disputed claims.
Plans to raise $1m
Separately, Mary Chia Holdings announced on Oct 6 that it plans to raise $1 million by issuing 100 million new shares at one cent each to four investors, including its 76-year-old founder, Mary Chia Ah Tow.
The proposed share issue, which is subject to shareholder approval, is intended to strengthen the group’s capital base and liquidity while supporting its overseas expansion plans.
Of the expected net proceeds of about $946,570, some $750,000 will be allocated to working capital, including manpower costs, professional fees and administrative expenses.
The remaining $196,570 will fund expansion into China and Thailand.
The proposed fundraising comes as the group faces significant financial pressures.
As at March 31, Mary Chia Holdings had net current liabilities of about $12,58 million and net liabilities of about $11.82 million, with cash and bank balances of approximately $310,000.
It recorded a net loss of $2.64 million for the financial year ended March 31, while its independent auditor issued a disclaimer of opinion after being unable to obtain sufficient evidence to verify several areas of its financial statements.
These included staff costs, borrowings, revenue and the group’s ability to continue as a going concern.
The Straits Times has contacted Mary Chia Holdings for comments.
