Arrest of Apex Digital Chairman in China Confirmed

David Ji, the co-founder and chairman of troubled U.S. electronics distributor Apex Digital Inc., has been arrested in China, a U.S. Embassy spokesperson in the country said today.

“The U.S. consulate general in Chengdu has confirmed the arrest of David Longfen Ji. Consular officials in Chengdu have requested and were allowed consular access to this U.S. citizen,� the spokesperson said without elaborating.

Earlier reports in the Chinese media said Ji had been detained by authorities on suspicion of financial fraud.

Also today, DVD maker Genius Co. said it was owed $4.3 million by Ontario-based Apex. That made it the second Chinese company this week to say it was in dispute with the electronics distributor.

Apex is a major supplier of inexpensive televisions and DVD players in the United States.

Tianjin-based Genius, which also makes computer software and hardware, said it would put aside provisions of more than 10.5 million yuan ($1.27 million) for 2004 to cover possible losses.

The provisions were in line with Chinese regulations that require listed companies to put aside provisions of 30% of possible losses if the liabilities were incurred within the last two or three years.

Executives at Apex were not available for comment about its relationship with Genius.

Sichuan Changhong Electric Appliance Co., China’s leading television maker, said Wednesday that it had ended its relationship with Apex in April after warning that it would suffer a big loss for 2004 because the company owed it $467.5 million.

Ji is being held in the province of Sichuan, where Changhong is headquartered, according to the Chinese media reports.