1. The board of Sound Global Ltd has established an Independent Review Committee of independent directors to look into potential issues identified in the audit of the 2014 Annual Results, including conducting an independent review with professional advisors if needed.
2. Trading of the company's shares and debt securities has been suspended since March 16, 2015 and will remain suspended pending resolution of the potential audit issues and publication of the 2014 Annual Results.
3. The independent review committee will cooperate fully to review the potential audit issues, and the board will consider engaging forensic accountants depending on the progress of the review.
Noble Group (Report 3) : Governance and Debtasianextractor
1. There are numerous red flags when reviewing Noble's governance, including independent directors serving for 19 years, key shareholders and executives leaving, and the auditor EY expressing many reservations in their reports.
2. Noble understates its debt substantially, with gross debt found to be 41% higher and net debt 64% higher than reported. Inventories claimed to repay debt have the same claim from suppliers.
3. After adjusting for debts and using a price-to-book method, the report estimates Noble's valuation at S$0.1 per share.
Noble Group, a Repeat of Enron? (Iceberg Research)asianextractor
- Noble Group classifies some of its minority investments as associates through its accounting practices in order to avoid recognizing large impairments and to fabricate profit. One example is Yancoal, where the carrying value on Noble's books is $603 million higher than the market value, representing a $603 million impairment that has not been recognized.
- The poor financial performance of Noble's associates has directly impacted the company's cash position, as Noble has been forced to recapitalize struggling associates. Cash outflows to associates and joint ventures since 2011 total $230 million.
- Noble's claim that losses from associates are "non-cash" is misleading, as the deteriorating value of listed associates reveals deep financial problems,
The document provides the final results and financial position of China Qinfa Group Limited for the year ended 31 December 2014, with comparative figures for 2013. Key highlights include:
- Turnover decreased 40.1% to RMB6.5 billion in 2014 from RMB10.8 billion in 2013.
- Loss attributable to equity shareholders increased to RMB1.2 billion in 2014 from RMB248 million in 2013, including one-off non-cash losses of RMB373 million.
- Auditors were unable to provide an opinion on the financial statements due to issues with prior year items.
China Enviornment: Auditor's Emphasis of Matterasianextractor
The auditor expresses an unqualified opinion that the financial statements present fairly, in all material respects, the financial position of China Environment Ltd. as of December 31, 2014. The auditor's responsibility is to express an opinion on the financial statements based on their audit of the company's financial records and accounting practices. Management is responsible for preparing the financial statements in accordance with Singapore law and financial reporting standards and for implementing internal controls over financial reporting.
Review of SEC Enforcement Developments In 2014asianextractor
The document summarizes developments in the SEC's enforcement program in 2014 and areas of continued focus in 2015. Key points include:
1) The SEC has adopted an aggressive "broken windows" approach to enforcement, focusing on even minor violations to deter larger ones. However, some commissioners have criticized this approach as misusing limited resources.
2) The SEC has increased its use of administrative proceedings, allowing it to avoid federal courts and secure more favorable outcomes. However, this has raised criticisms about fairness and developing case law.
3) The SEC has emphasized individual culpability and prosecuting corporate "gatekeepers" like compliance officers and accountants to increase deterrence.
4) The SEC has eroded
2014 Booth Laird Investment Partnership Annual Letter: Reflection on the Acco...asianextractor
2014 Booth Laird Investment Partnership Annual Letter: Reflection on the Accounting Fraud of HQS, a company headquartered in Seattle with its primary operations in China
The notion that related-party transactions require heightened scrutiny has a long history. Transactions with related parties have historically been associated with misstatements and fraud. Several prominent frauds—Refco, Enron, Adelphia, and Tyco—serve as familiar examples. New guidance from the PCAOB in the form of AS 18 should lead to increased auditor scrutiny of the relationships and transactions, and result in improved audits.
1. The board of Sound Global Ltd has established an Independent Review Committee of independent directors to look into potential issues identified in the audit of the 2014 Annual Results, including conducting an independent review with professional advisors if needed.
2. Trading of the company's shares and debt securities has been suspended since March 16, 2015 and will remain suspended pending resolution of the potential audit issues and publication of the 2014 Annual Results.
3. The independent review committee will cooperate fully to review the potential audit issues, and the board will consider engaging forensic accountants depending on the progress of the review.
Noble Group (Report 3) : Governance and Debtasianextractor
1. There are numerous red flags when reviewing Noble's governance, including independent directors serving for 19 years, key shareholders and executives leaving, and the auditor EY expressing many reservations in their reports.
2. Noble understates its debt substantially, with gross debt found to be 41% higher and net debt 64% higher than reported. Inventories claimed to repay debt have the same claim from suppliers.
3. After adjusting for debts and using a price-to-book method, the report estimates Noble's valuation at S$0.1 per share.
Noble Group, a Repeat of Enron? (Iceberg Research)asianextractor
- Noble Group classifies some of its minority investments as associates through its accounting practices in order to avoid recognizing large impairments and to fabricate profit. One example is Yancoal, where the carrying value on Noble's books is $603 million higher than the market value, representing a $603 million impairment that has not been recognized.
- The poor financial performance of Noble's associates has directly impacted the company's cash position, as Noble has been forced to recapitalize struggling associates. Cash outflows to associates and joint ventures since 2011 total $230 million.
- Noble's claim that losses from associates are "non-cash" is misleading, as the deteriorating value of listed associates reveals deep financial problems,
The document provides the final results and financial position of China Qinfa Group Limited for the year ended 31 December 2014, with comparative figures for 2013. Key highlights include:
- Turnover decreased 40.1% to RMB6.5 billion in 2014 from RMB10.8 billion in 2013.
- Loss attributable to equity shareholders increased to RMB1.2 billion in 2014 from RMB248 million in 2013, including one-off non-cash losses of RMB373 million.
- Auditors were unable to provide an opinion on the financial statements due to issues with prior year items.
China Enviornment: Auditor's Emphasis of Matterasianextractor
The auditor expresses an unqualified opinion that the financial statements present fairly, in all material respects, the financial position of China Environment Ltd. as of December 31, 2014. The auditor's responsibility is to express an opinion on the financial statements based on their audit of the company's financial records and accounting practices. Management is responsible for preparing the financial statements in accordance with Singapore law and financial reporting standards and for implementing internal controls over financial reporting.
Review of SEC Enforcement Developments In 2014asianextractor
The document summarizes developments in the SEC's enforcement program in 2014 and areas of continued focus in 2015. Key points include:
1) The SEC has adopted an aggressive "broken windows" approach to enforcement, focusing on even minor violations to deter larger ones. However, some commissioners have criticized this approach as misusing limited resources.
2) The SEC has increased its use of administrative proceedings, allowing it to avoid federal courts and secure more favorable outcomes. However, this has raised criticisms about fairness and developing case law.
3) The SEC has emphasized individual culpability and prosecuting corporate "gatekeepers" like compliance officers and accountants to increase deterrence.
4) The SEC has eroded
2014 Booth Laird Investment Partnership Annual Letter: Reflection on the Acco...asianextractor
2014 Booth Laird Investment Partnership Annual Letter: Reflection on the Accounting Fraud of HQS, a company headquartered in Seattle with its primary operations in China
The notion that related-party transactions require heightened scrutiny has a long history. Transactions with related parties have historically been associated with misstatements and fraud. Several prominent frauds—Refco, Enron, Adelphia, and Tyco—serve as familiar examples. New guidance from the PCAOB in the form of AS 18 should lead to increased auditor scrutiny of the relationships and transactions, and result in improved audits.
Preparing for the Regulatory Challenges of the 21st Century by SEC Commission...asianextractor
The document discusses the regulatory challenges facing the SEC in the 21st century. It notes that during Commissioner Luis Aguilar's tenure, the US experienced the worst financial crisis since the Great Depression. As a new commissioner at the time, Aguilar witnessed the fragility of capital markets firsthand. The SEC now faces the challenges of prioritizing the use of data and technology to better monitor evolving markets and working globally to protect US investors in an increasingly interconnected world.
The company announced that based on a preliminary assessment of its unaudited financials, it expects to report a substantial loss for the year ended March 31, 2015 compared to a net profit in the previous year. This expected loss was mainly due to a decrease in revenue from luxury goods sales due to China's anti-extravagance policies, losses on foreign exchange contracts, and increased financing costs. The company also expects to incur impairment losses on some assets. Shareholders are advised to exercise caution when dealing in the company's shares.
The fund invests in IPO securities listed in Greater China, Singapore, or the US that derive revenue from Greater China or Singapore. Over the past 2 years, the fund achieved a return of 138.39%, outperforming its benchmark by 42.07%. The manager uses quantitative and qualitative criteria to determine investments with a focus on IPOs that offer growth potential.
1. The document analyzes Rolta India Limited, an IT company that issued $500 million in junk bonds in 2013 and 2014.
2. It finds evidence that Rolta has fabricated its reported capital expenditures and overstated its profits in order to mask that it does not generate free cash flow and will be unable to repay bondholders without refinancing.
3. Specifically, it points to Rolta's suspicious spending on computer systems, buildings, and prototypes, as well as transactions that enrich the Chairman, as signs that the company is manipulating its financial reporting. It concludes that Rolta's bonds should be valued at just 16 cents on the dollar.
China Nature Flooring (2083 HK) Industry Overview by Frost & Sullivanasianextractor
This document summarizes information about China's flooring industry from Frost & Sullivan reports and public sources. It discusses key details about China's overall flooring market, wood flooring market, and the laminated, engineered, and solid wood flooring segments. China's flooring market has grown significantly but remains underpenetrated compared to developed markets. Wood flooring has become increasingly popular in China and was the second largest flooring product category in 2009, accounting for 10% of total installed floorspace. China has been the world's largest wood flooring market in terms of both sales volume and value since 2009.
Glaucus research ozner-water-hk_2014-strong_sell_feb_16_2015asianextractor
This report summarizes evidence that Ozner Water International Holding Ltd has exaggerated its financial performance and misled investors. It finds that government records show the company's revenues, production, and profits are much smaller than reported. Additionally, it was previously owned by another company pursuing the same business that reported significant losses, contradicting Ozner's claims of profitability. The report concludes Ozner is overvalued and likely to face further decline.
Qinfa: Industry Overview by BBIC in IPO Prospectusasianextractor
The document discusses a report commissioned by the Group from BBIC to provide information on the coal industry to potential investors. BBIC is a reputable research company in China with substantial experience publishing market reports. The BBIC Report included overviews of the global coal industry, global coal reserves and production, and global coal consumption based on data from reliable sources. It was commissioned to independently research, analyze, and report on market trends in the coal and transportation industries.
1. Noble Group has reported $2.7 billion in net profits since 2009 but $485 million in operating cash outflows over the same period, with deteriorating cash flows in recent years.
2. The divergence between profits and cash flows is largely due to increasing fair values of unrealized commodity contracts reported on Noble's balance sheet, which have grown from near zero in 2009 to $3.8 billion currently.
3. Noble recognizes the entire profit for long-term commodity contracts upfront, upon signing, through fair value accounting. The increasing fair values have become the main driver of reported profits rather than underlying business performance.
The document discusses Porter's Five Forces model as it applies to the brokerage industry. It summarizes that brokers face intense rivalry due to the commodity nature of their services and large number of competitors. They attempt to differentiate themselves through insider information and turning a blind eye to market violations. The threat of substitute products like discount brokerages has shrunk commissions. New entrants often promise higher service levels but actually deliver lower moral standards. Brokers compete for access to companies and try to curry favor through price upgrades or exclusive relationships. This can force artificially high target prices from analysts. Retail buyers encourage frequent trading while institutions outsource work but demand lower fees.
China Ting Updated Profit Warning 25 Mar 2015asianextractor
The document provides updated information on a profit warning for China Ting Group Holdings Limited for the year ended 31 December 2014. It is estimated that the loss before tax will increase from HK$193.0 million to HK$246.9 million primarily due to: (1) Reclassification of an equity investment as an available-for-sale financial asset, resulting in an impairment charge of HK$83.5 million; (2) A provision for bad debt of HK$17.7 million related to two entrusted loans; and (3) A decrease in provisions for slow-moving inventories and better than expected performance in the last two months of the year. An announcement of the audited annual results
1. China Taifeng Beddings Holdings Limited announced a delay in publishing its 2014 annual results due to the need for more time to ascertain the fair value of financial guarantee contracts and asset impairment assessments, and for the auditor to finalize the audit.
2. The company will not publish unaudited management accounts as there may be significant adjustments and they do not accurately reflect the company's financial position.
3. The company will announce the board meeting date to approve the 2014 annual results and publish the results when available.
Short Selling: Cleaning Up After Elephantsasianextractor
This document provides an overview of short selling and the author's experience as a professional short seller for over 20 years. It discusses his methodology of focusing on companies experiencing slowing sales growth and deteriorating working capital, as evidenced by rising inventory and accounts receivable. The document analyzes several case studies where this approach successfully identified short opportunities, such as Fruit of the Loom where slowing sales and rising inventory preceded price cuts and a declining stock price. It also discusses the importance of keeping the analysis simple and avoiding overly complicated stocks or situations relying on external factors like government approvals.
The company announced a profit warning for the first quarter of 2015, with an estimated net loss between RMB300-390 million compared to a net profit of RMB395.8 million in the same period last year. This was due to a slowdown in construction and real estate investment in China reducing demand for the company's construction machinery. Tightened sales policies and a delayed start to projects after the late Chinese New Year also negatively impacted sales and profits. Full financial details will be provided in the company's quarterly report. Shareholders are advised to exercise caution when dealing in the company's shares.
China Nature FY14: Abnormally high RMB1.2bn in other receivables held at the ...asianextractor
- The document is an announcement of results by Nature Home Holding Company Limited for the year ended 31 December 2014.
- Key highlights include revenue increasing 32.9% to RMB1,979 million, gross profit increasing 23.8% to RMB619 million, and a loss before tax of RMB39 million compared to a profit before tax of RMB211 million in 2013 mainly due to a non-cash decrease in fair value of biological assets.
- The board recommends declaring a final dividend of HK1.4 cents per share out of share premium account.
Noble Group acquired PT Alhasanie (PT ALH) in 2011 for $300,000 and booked a $46.4 million gain from negative goodwill. Shortly after, Noble sold PT ALH for $4 million, after restructuring an off-take agreement with a Noble subsidiary that lowered PT ALH's carrying value. The transactions allowed Noble to generate an accounting gain, avoid an impairment charge, and potentially boost EBITDA. However, the deals raise questions as Noble did not appear to transact with arms-length parties and the valuations and restructuring lack transparency.
The summary provides the following key points in 3 sentences:
Federal securities class action filings increased slightly in 2014 to 169 cases, remaining near historically low levels. Accounting-related lawsuits rose to 53 cases, driven by actions from regulators focusing on financial reporting and new tools to detect accounting irregularities. Emerging issues like cybercrime, new trading practices, and increased IPO and M&A activity may face increased regulatory scrutiny and become subjects of future securities litigation.
1) Zhongmin Baihui Retail Group's stock price rallied over 270% in one year upon listing, but does not react to market forces or the company's financial performance, raising investor caution.
2) The company provides weak disclosures of key retail metrics and had a temporary revenue spike from an asset transfer with questionable terms.
3) The corporate structure involves a lease agreement that effectively pays the CEO, Deputy CEO and a director, questioning corporate governance.
1. This document analyzes Zhongmin Baihui Retail Group Ltd (ZMBH), a Chinese department store operator listed in Singapore, and advises caution in investing in the company.
2. Key issues highlighted include ZMBH's stock price performance that seems disconnected from fundamentals and ignores market swings, weak financial disclosures and erratic performance, and a questionable corporate structure involving related party transactions.
3. Additional research uncovered corporate governance deficiencies, and while recent positive media coverage aimed to portray ZMBH positively, some statements were found to be misleading or lend further evidence to suspicions about the company. Investors are advised to stay away due to the overvalued and potentially manipulated stock, along
HKEx Prolonged Suspension Status Report (Aug2015)asianextractor
The document summarizes the status of companies that have been suspended from trading on the stock exchange for three months or more. It provides an overview of the exchange's criteria for suspending and resuming trading, as well as a table that categorizes the long-suspended companies and outlines the key issues and developments in each case. The table lists seven companies that are undergoing the exchange's three-stage delisting procedure due to severe financial difficulties or minimal operations. It also lists one other company under regulatory investigation for alleged irregularities.
Dupré Analytics is shorting China Zhongwang, alleging it is the largest fraud ever uncovered in China. They claim Chairman Liu and his family have defrauded investors since 2009 by fabricating at least 62.5% of revenue since 2011 (HK$38.5 billion) and siphoning funds from a delayed facility project. Dupré alleges the Liu family has used secretly controlled trading companies and intermediaries to move tens of billions of dollars of aluminum abroad, racking up HK$36.5 billion in undisclosed borrowing recourseable to Zhongwang. Large stockpiles of aluminum in the U.S. and Mexico allegedly show Zhongwang's reported revenue is fraudulent.
China Fiber Optic, a fiber optic patch cord producer listed in Hong Kong, has fabricated its financial reports. A comparison of its main China subsidiary Sifang Telecom's regulatory filings with China Fiber's reports to shareholders found revenue was exaggerated by 4 to 10 times from 2008 to 2012. Sifang Telecom's 2012 revenue was only 25.1% and net profit only 7.4% of what China Fiber reported. Further evidence from customs data, sales contracts, and interviews confirms China Fiber's claims of exports and prices are false and it has committed outrageous and long-term financial fraud.
Sihuan (460 HK) Auditor Disclaimer of Opinionasianextractor
The document is Sihuan Pharmaceutical Holdings Group's announcement of its annual results for the year ended 31 December 2014. It summarizes that for 2014, the company's profit attributable to owners increased 30.1% to RMB1,671.3 million with revenue up 19.2% to RMB3,084.2 million. Basic earnings per share rose 30% to approximately RMB16.1 cents. A final cash dividend of RMB1.3 cents per share was recommended.
Preparing for the Regulatory Challenges of the 21st Century by SEC Commission...asianextractor
The document discusses the regulatory challenges facing the SEC in the 21st century. It notes that during Commissioner Luis Aguilar's tenure, the US experienced the worst financial crisis since the Great Depression. As a new commissioner at the time, Aguilar witnessed the fragility of capital markets firsthand. The SEC now faces the challenges of prioritizing the use of data and technology to better monitor evolving markets and working globally to protect US investors in an increasingly interconnected world.
The company announced that based on a preliminary assessment of its unaudited financials, it expects to report a substantial loss for the year ended March 31, 2015 compared to a net profit in the previous year. This expected loss was mainly due to a decrease in revenue from luxury goods sales due to China's anti-extravagance policies, losses on foreign exchange contracts, and increased financing costs. The company also expects to incur impairment losses on some assets. Shareholders are advised to exercise caution when dealing in the company's shares.
The fund invests in IPO securities listed in Greater China, Singapore, or the US that derive revenue from Greater China or Singapore. Over the past 2 years, the fund achieved a return of 138.39%, outperforming its benchmark by 42.07%. The manager uses quantitative and qualitative criteria to determine investments with a focus on IPOs that offer growth potential.
1. The document analyzes Rolta India Limited, an IT company that issued $500 million in junk bonds in 2013 and 2014.
2. It finds evidence that Rolta has fabricated its reported capital expenditures and overstated its profits in order to mask that it does not generate free cash flow and will be unable to repay bondholders without refinancing.
3. Specifically, it points to Rolta's suspicious spending on computer systems, buildings, and prototypes, as well as transactions that enrich the Chairman, as signs that the company is manipulating its financial reporting. It concludes that Rolta's bonds should be valued at just 16 cents on the dollar.
China Nature Flooring (2083 HK) Industry Overview by Frost & Sullivanasianextractor
This document summarizes information about China's flooring industry from Frost & Sullivan reports and public sources. It discusses key details about China's overall flooring market, wood flooring market, and the laminated, engineered, and solid wood flooring segments. China's flooring market has grown significantly but remains underpenetrated compared to developed markets. Wood flooring has become increasingly popular in China and was the second largest flooring product category in 2009, accounting for 10% of total installed floorspace. China has been the world's largest wood flooring market in terms of both sales volume and value since 2009.
Glaucus research ozner-water-hk_2014-strong_sell_feb_16_2015asianextractor
This report summarizes evidence that Ozner Water International Holding Ltd has exaggerated its financial performance and misled investors. It finds that government records show the company's revenues, production, and profits are much smaller than reported. Additionally, it was previously owned by another company pursuing the same business that reported significant losses, contradicting Ozner's claims of profitability. The report concludes Ozner is overvalued and likely to face further decline.
Qinfa: Industry Overview by BBIC in IPO Prospectusasianextractor
The document discusses a report commissioned by the Group from BBIC to provide information on the coal industry to potential investors. BBIC is a reputable research company in China with substantial experience publishing market reports. The BBIC Report included overviews of the global coal industry, global coal reserves and production, and global coal consumption based on data from reliable sources. It was commissioned to independently research, analyze, and report on market trends in the coal and transportation industries.
1. Noble Group has reported $2.7 billion in net profits since 2009 but $485 million in operating cash outflows over the same period, with deteriorating cash flows in recent years.
2. The divergence between profits and cash flows is largely due to increasing fair values of unrealized commodity contracts reported on Noble's balance sheet, which have grown from near zero in 2009 to $3.8 billion currently.
3. Noble recognizes the entire profit for long-term commodity contracts upfront, upon signing, through fair value accounting. The increasing fair values have become the main driver of reported profits rather than underlying business performance.
The document discusses Porter's Five Forces model as it applies to the brokerage industry. It summarizes that brokers face intense rivalry due to the commodity nature of their services and large number of competitors. They attempt to differentiate themselves through insider information and turning a blind eye to market violations. The threat of substitute products like discount brokerages has shrunk commissions. New entrants often promise higher service levels but actually deliver lower moral standards. Brokers compete for access to companies and try to curry favor through price upgrades or exclusive relationships. This can force artificially high target prices from analysts. Retail buyers encourage frequent trading while institutions outsource work but demand lower fees.
China Ting Updated Profit Warning 25 Mar 2015asianextractor
The document provides updated information on a profit warning for China Ting Group Holdings Limited for the year ended 31 December 2014. It is estimated that the loss before tax will increase from HK$193.0 million to HK$246.9 million primarily due to: (1) Reclassification of an equity investment as an available-for-sale financial asset, resulting in an impairment charge of HK$83.5 million; (2) A provision for bad debt of HK$17.7 million related to two entrusted loans; and (3) A decrease in provisions for slow-moving inventories and better than expected performance in the last two months of the year. An announcement of the audited annual results
1. China Taifeng Beddings Holdings Limited announced a delay in publishing its 2014 annual results due to the need for more time to ascertain the fair value of financial guarantee contracts and asset impairment assessments, and for the auditor to finalize the audit.
2. The company will not publish unaudited management accounts as there may be significant adjustments and they do not accurately reflect the company's financial position.
3. The company will announce the board meeting date to approve the 2014 annual results and publish the results when available.
Short Selling: Cleaning Up After Elephantsasianextractor
This document provides an overview of short selling and the author's experience as a professional short seller for over 20 years. It discusses his methodology of focusing on companies experiencing slowing sales growth and deteriorating working capital, as evidenced by rising inventory and accounts receivable. The document analyzes several case studies where this approach successfully identified short opportunities, such as Fruit of the Loom where slowing sales and rising inventory preceded price cuts and a declining stock price. It also discusses the importance of keeping the analysis simple and avoiding overly complicated stocks or situations relying on external factors like government approvals.
The company announced a profit warning for the first quarter of 2015, with an estimated net loss between RMB300-390 million compared to a net profit of RMB395.8 million in the same period last year. This was due to a slowdown in construction and real estate investment in China reducing demand for the company's construction machinery. Tightened sales policies and a delayed start to projects after the late Chinese New Year also negatively impacted sales and profits. Full financial details will be provided in the company's quarterly report. Shareholders are advised to exercise caution when dealing in the company's shares.
China Nature FY14: Abnormally high RMB1.2bn in other receivables held at the ...asianextractor
- The document is an announcement of results by Nature Home Holding Company Limited for the year ended 31 December 2014.
- Key highlights include revenue increasing 32.9% to RMB1,979 million, gross profit increasing 23.8% to RMB619 million, and a loss before tax of RMB39 million compared to a profit before tax of RMB211 million in 2013 mainly due to a non-cash decrease in fair value of biological assets.
- The board recommends declaring a final dividend of HK1.4 cents per share out of share premium account.
Noble Group acquired PT Alhasanie (PT ALH) in 2011 for $300,000 and booked a $46.4 million gain from negative goodwill. Shortly after, Noble sold PT ALH for $4 million, after restructuring an off-take agreement with a Noble subsidiary that lowered PT ALH's carrying value. The transactions allowed Noble to generate an accounting gain, avoid an impairment charge, and potentially boost EBITDA. However, the deals raise questions as Noble did not appear to transact with arms-length parties and the valuations and restructuring lack transparency.
The summary provides the following key points in 3 sentences:
Federal securities class action filings increased slightly in 2014 to 169 cases, remaining near historically low levels. Accounting-related lawsuits rose to 53 cases, driven by actions from regulators focusing on financial reporting and new tools to detect accounting irregularities. Emerging issues like cybercrime, new trading practices, and increased IPO and M&A activity may face increased regulatory scrutiny and become subjects of future securities litigation.
1) Zhongmin Baihui Retail Group's stock price rallied over 270% in one year upon listing, but does not react to market forces or the company's financial performance, raising investor caution.
2) The company provides weak disclosures of key retail metrics and had a temporary revenue spike from an asset transfer with questionable terms.
3) The corporate structure involves a lease agreement that effectively pays the CEO, Deputy CEO and a director, questioning corporate governance.
1. This document analyzes Zhongmin Baihui Retail Group Ltd (ZMBH), a Chinese department store operator listed in Singapore, and advises caution in investing in the company.
2. Key issues highlighted include ZMBH's stock price performance that seems disconnected from fundamentals and ignores market swings, weak financial disclosures and erratic performance, and a questionable corporate structure involving related party transactions.
3. Additional research uncovered corporate governance deficiencies, and while recent positive media coverage aimed to portray ZMBH positively, some statements were found to be misleading or lend further evidence to suspicions about the company. Investors are advised to stay away due to the overvalued and potentially manipulated stock, along
HKEx Prolonged Suspension Status Report (Aug2015)asianextractor
The document summarizes the status of companies that have been suspended from trading on the stock exchange for three months or more. It provides an overview of the exchange's criteria for suspending and resuming trading, as well as a table that categorizes the long-suspended companies and outlines the key issues and developments in each case. The table lists seven companies that are undergoing the exchange's three-stage delisting procedure due to severe financial difficulties or minimal operations. It also lists one other company under regulatory investigation for alleged irregularities.
Dupré Analytics is shorting China Zhongwang, alleging it is the largest fraud ever uncovered in China. They claim Chairman Liu and his family have defrauded investors since 2009 by fabricating at least 62.5% of revenue since 2011 (HK$38.5 billion) and siphoning funds from a delayed facility project. Dupré alleges the Liu family has used secretly controlled trading companies and intermediaries to move tens of billions of dollars of aluminum abroad, racking up HK$36.5 billion in undisclosed borrowing recourseable to Zhongwang. Large stockpiles of aluminum in the U.S. and Mexico allegedly show Zhongwang's reported revenue is fraudulent.
China Fiber Optic, a fiber optic patch cord producer listed in Hong Kong, has fabricated its financial reports. A comparison of its main China subsidiary Sifang Telecom's regulatory filings with China Fiber's reports to shareholders found revenue was exaggerated by 4 to 10 times from 2008 to 2012. Sifang Telecom's 2012 revenue was only 25.1% and net profit only 7.4% of what China Fiber reported. Further evidence from customs data, sales contracts, and interviews confirms China Fiber's claims of exports and prices are false and it has committed outrageous and long-term financial fraud.
Sihuan (460 HK) Auditor Disclaimer of Opinionasianextractor
The document is Sihuan Pharmaceutical Holdings Group's announcement of its annual results for the year ended 31 December 2014. It summarizes that for 2014, the company's profit attributable to owners increased 30.1% to RMB1,671.3 million with revenue up 19.2% to RMB3,084.2 million. Basic earnings per share rose 30% to approximately RMB16.1 cents. A final cash dividend of RMB1.3 cents per share was recommended.
The document is an investigation report by an independent committee investigating accounting issues at Toshiba Corporation. It finds inappropriate accounting treatments that overstated profits across multiple business divisions, including power systems, semiconductors, PCs, and visual products. Key causes identified include strong pressure from top management to meet budgets and priorities of near-term profit over proper accounting. The report provides recommendations to reform governance, strengthen internal controls, and prevent recurrence.
China LNG Group is a Hong Kong-based company with a market capitalization of HKD 16.69 billion but minimal recurring revenue and an unproven business model in the liquefied natural gas industry. The research report identifies China LNG as being wildly overvalued compared to other energy companies based on price-to-book and price-to-sales ratios. It argues China LNG has no competitive advantages given its lack of experience, assets, proprietary technology, or meaningful operating business in the already crowded LNG market in China. The report recommends a strong sell on China LNG's stock and assigns a price target of HKD 0.08 per share.
China LNG Group is a Hong Kong-listed company with a market capitalization of HKD 16.7 billion but an underlying business that generates minimal revenue and profits. The author argues that China LNG's valuation is unjustifiably high given that its core lease financing business has generated only HKD 131,750 in revenue so far and its future plans are unproven. Much of China LNG's reported profits have come from non-recurring transactions such as the sale of bonds issued by a related party, which should not be considered ongoing sources of revenue. The author maintains China LNG should be valued closer to its book value like other energy companies.
China Due Diligence - Red Flags to Avoid Some of the Pitfallsasianextractor
The document discusses red flags and risks to avoid when conducting due diligence on potential investments in Chinese companies. It outlines several areas that thorough due diligence should examine, including ownership structures, financial records, inventory, suppliers/customers, and asset valuations. More sophisticated fraud risks include inflated revenues through round-tripping schemes, hidden related-party transactions, and disguised nominee ownership. Proper due diligence requires scrutinizing financials for unusual numbers, verifying documents and asset ownership, and being aware of fraud tactics that abuse personal networks in China.
China Cord Blood Corp (NYSE: CO) and Golden Meditech (801 HK)asianextractor
1. The document analyzes financial and operating data from China Cord Blood Corp and finds inconsistencies that raise doubts about the accuracy of the reported numbers.
2. It notes a sudden spike in revenue and profits per new subscriber in 2013 that coincided with a large increase in prepayments, as well as dramatic rises in deferred income as a percentage of revenue in subsequent years.
3. The operating data shows each new subscriber contributing significantly more to unearned storage fees and deferred income between 2012-2015 despite no reported change in storage fee policies. This suggests the financial and operating data do not match.
Mismatched regulatory regimes: How chinese reverse mergers and china media-...asianextractor
This document provides background on Chinese Reverse Mergers (CRMs) and examines the case of China MediaExpress Holdings, Inc., a CRM that collapsed amid fraud allegations. It discusses how CRMs became a popular way for Chinese companies to access U.S. capital markets through reverse mergers with shell companies already listed on exchanges. However, many CRMs quickly failed due to financial reporting problems and a lack of disclosure requirements. The China MediaExpress case is analyzed as an example. Regulatory loopholes in both Chinese and U.S. laws are explored that allowed CRMs like China MediaExpress to evade scrutiny and mislead American investors.
The document contains feedback from students praising their professor, Kee Koon Boon, for his outstanding teaching of the Accounting Fraud module. Students highlight that the professor is passionate, knowledgeable, and his lessons on detecting accounting fraud are some of the most useful and practical. They appreciate him sharing his insights and real-world experiences. Multiple students also thank the professor for not only teaching technical skills but also helping them develop values like perseverance, positivity, and a desire to do good.
REXlot (555 HK) by Anonymous Analytics - Betting on a Pipe Dreamasianextractor
REXLot Holdings is a Hong Kong-listed company that operates online and offline lottery businesses in China. However, an analysis of public documents finds that REXLot has significantly inflated its reported revenue and profits. For the online business, an analysis of disclosures by REXLot's joint venture partner and independent market data shows REXLot is overstating revenue by 2-3x. For the offline business, government tender documents indicate REXLot is overstating commission revenue. Accounting filings further suggest the offline business revenue is inflated by at least 2x. REXLot's reported cash balance and interest income are also inconsistent, suggesting cash is exaggerated. Dividends have been funded through convertible bond offerings
FMCN has fraudulently overstated the number of LCD screens in its network by approximately 50% and questions the viability of its core LCD business. Like Olympus, FMCN significantly overpays for acquisitions, writing down $1.1 billion of $1.6 billion in acquisitions, equal to one-third of its enterprise value. FMCN has claimed acquisitions it did not make, concerning where cash went. Insiders have profited over $1.7 billion from stock sales while using FMCN transactions to earn over $70 million at shareholders' expense. The problems uncovered likely represent ongoing issues, and recent deals indicate abuse of shareholders continues.
This announcement is from the board of directors of Mingyuan Medicare Development Company Limited regarding their failure to communicate with one of their executive directors, Mr. Zhao Chao, since the end of December 2014. The board has tried unsuccessfully to contact Mr. Zhao, who is responsible for overseeing the company's medical centers management division. However, the division continues to be run by experienced management and the chairman and CEO has taken over oversight of the division during Mr. Zhao's absence. The board considers Mr. Zhao's absence unlikely to materially affect the company's business. The board will remove Mr. Zhao from his position if he does not provide a reasonable explanation for his absence or demonstrate his ability and willingness
Mingyuan Medicare (233 HK): Delay in Audit of Cash asianextractor
This announcement states that Mingyuan Medicare Development Company will be delayed in publishing its audited annual results for 2014 and dispatching its annual report due to additional time needed by its auditors to complete procedures regarding the company's bank balance as of December 31, 2014. It acknowledges this will result in non-compliance with stock exchange rules regarding deadlines for annual results and reports. It also announces the postponement of its board meeting to approve the annual results and the suspension of trading of its stock until the results are released.
This announcement provides a positive profit alert for Mingyuan Medicare Development Company for the year ended 31 December 2014. According to preliminary assessments, the company is expected to report a small profit compared to a substantial loss in the previous year. This is primarily due to a gain from recovering previously written off receivables. The company is still finalizing its annual results, which are expected to be published by 31 March 2015. Shareholders are advised to exercise caution when dealing in company shares.
Rolta India: Rebuttal #2 by Glaucus Researchasianextractor
This document provides a rebuttal to responses from Rolta India regarding allegations that the company fabricated its reported capital expenditures. The rebuttal focuses on key issues from the original report, including Rolta's abysmal returns on capital investment, questions around its large spending on computer systems that are quickly depreciated and disposed of, and a lack of transparency around prototype expenditures. The rebuttal expresses skepticism around Rolta's explanations and argues the company has failed to adequately address the core issues raised regarding the legitimacy of its capital expenditures.
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Adani Group's Active Interest In Increasing Its Presence in the Cement Manufa...Adani case
Time and again, the business group has taken up new business ventures, each of which has allowed it to expand its horizons further and reach new heights. Even amidst the Adani CBI Investigation, the firm has always focused on improving its cement business.
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Tired of chasing down expiring contracts and drowning in paperwork? Mastering contract management can significantly enhance your business efficiency and productivity. This guide unveils expert secrets to streamline your contract management process. Learn how to save time, minimize risk, and achieve effortless contract management.
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Unlock your kitchen's true potential with expert remodeling services from O'Brien Group Inc. Transform your space into a functional, modern, and luxurious haven with their experienced professionals. From layout reconfiguration to high-end upgrades, they deliver stunning results tailored to your style and needs. Visit obriengroupinc.com to elevate your kitchen's beauty and functionality today.
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L'indice de performance des ports à conteneurs de l'année 2023SPATPortToamasina
Une évaluation comparable de la performance basée sur le temps d'escale des navires
L'objectif de l'ICPP est d'identifier les domaines d'amélioration qui peuvent en fin de compte bénéficier à toutes les parties concernées, des compagnies maritimes aux gouvernements nationaux en passant par les consommateurs. Il est conçu pour servir de point de référence aux principaux acteurs de l'économie mondiale, notamment les autorités et les opérateurs portuaires, les gouvernements nationaux, les organisations supranationales, les agences de développement, les divers intérêts maritimes et d'autres acteurs publics et privés du commerce, de la logistique et des services de la chaîne d'approvisionnement.
Le développement de l'ICPP repose sur le temps total passé par les porte-conteneurs dans les ports, de la manière expliquée dans les sections suivantes du rapport, et comme dans les itérations précédentes de l'ICPP. Cette quatrième itération utilise des données pour l'année civile complète 2023. Elle poursuit le changement introduit l'année dernière en n'incluant que les ports qui ont eu un minimum de 24 escales valides au cours de la période de 12 mois de l'étude. Le nombre de ports inclus dans l'ICPP 2023 est de 405.
Comme dans les éditions précédentes de l'ICPP, la production du classement fait appel à deux approches méthodologiques différentes : une approche administrative, ou technique, une méthodologie pragmatique reflétant les connaissances et le jugement des experts ; et une approche statistique, utilisant l'analyse factorielle (AF), ou plus précisément la factorisation matricielle. L'utilisation de ces deux approches vise à garantir que le classement des performances des ports à conteneurs reflète le plus fidèlement possible les performances réelles des ports, tout en étant statistiquement robuste.
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AI Transformation Playbook: Thinking AI-First for Your BusinessArijit Dutta
I dive into how businesses can stay competitive by integrating AI into their core processes. From identifying the right approach to building collaborative teams and recognizing common pitfalls, this guide has got you covered. AI transformation is a journey, and this playbook is here to help you navigate it successfully.
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...BBPMedia1
Nathalie zal delen hoe DEI en ESG een fundamentele rol kunnen spelen in je merkstrategie en je de juiste aansluiting kan creëren met je doelgroep. Door middel van voorbeelden en simpele handvatten toont ze hoe dit in jouw organisatie toegepast kan worden.
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Sound Global: Resignation of Independent NED and Chairman of Audit Committee
1. 1
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for
the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any
liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this
announcement.
SOUND GLOBAL LTD.
桑德國際有限公司
(Incorporated in the Republic of Singapore with limited liability)
(Company Registration Number 200515422C)
(Hong Kong Stock Code: 967)
RESIGNATION OF AN INDEPENDENT NON EXECUTIVE DIRECTOR, THE
CHAIRMAN OF AUDIT COMMITTEE AND NOMINATION COMMITTEE, AND A
MEMBER OF REMUNERATION COMMITTEE
The board (“Board”) of directors (“Directors”) of Sound Global Ltd. (the “Company”, together
with its subsidiaries, the “Group”) hereby announces that Mr. Wong See Meng (“Mr. Wong”) has
resigned as an independent non-executive Director (“INED”), the chairman of audit committee and
nomination committee, and a member of remuneration committee of the Company on 26 March 2015
due to family and personal commitments.
Mr. Wong has confirmed that he has no disagreement with the Board. Before his resignation, Mr.
Wong and the other members of the audit committee held a meeting on 26 March 2015 and
recommended to the Board (1) to set up an independent review committee to look into the
outstanding audit issues and to carry out a forensic review of the outstanding audit issues with the
assistance of independent professional advisers; and (2) to appoint independent professional advisers
shortlisted by the audit committee. Save as disclosed above, both Mr. Wong and the Board are not
aware of any other matters relating to the resignation of Mr. Wong that need to be brought to the
attention of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) and the
shareholders of the Company.
The Board noted that as a result of the resignation of Mr. Wong, the numbers of INEDs and the audit
committee of the Company have fallen below the minimum number as required under Rules 3.10(1)
and 3.21 of the Rules Governing the Listing of Securities on the Stock Exchange (the “Listing
Rules”). The current number of INEDs also does not represent at least one-third of the Board as
required under Rule 3.10A of the Listing Rules. In addition, given that the remaining two INEDs and
2. 2
members of the audit committee, namely Mr. Fu Tao (“Mr. Fu”) and Mr. Seow Han Chiang
Winston (“Mr. Seow”) do not possess the appropriate professional qualifications or accounting or
related financial management expertise as required under Rules 3.10(2) and 3.21 of the Listing Rules,
the resignation of Mr. Wong constitutes non-compliance of Rule 3.10(2) and Rule 3.21 of the Listing
Rules.
Upon the resignation of Mr. Wong, Mr. Seow will serve the position of acting chairman of both of
audit committee and nomination committee of the Company.
The Board shall use its best endeavour to look for a suitable candidate to fill up the above-mentioned
vacancies as soon as practicable and within three months required under Rules 3.11, 3.23 and 3.27 of
the Listing Rules. The Company will make further announcement(s) as and when appropriate.
The Board hereby expresses its gratitude to Mr. Wong for his valuable contribution to the Company
during his term of office.
By Order of the Board
Sound Global Ltd.
Zhang Jingzhi
Hong Kong, 31 March 2015
As of the date of this announcement, the executive Directors are Wen Yibo, Zhang Jingzhi, Wang
Kai, Luo Liyang and Jiang Anping; and the independent non-executive Directors are Fu Tao and Seow Han
Chiang Winston