Shares of Chaoda Modern Agriculture (0682) slumped 45.45 percent to HK$0.60 after it resumed trading after being suspended for more than three years for accounting fraud

http://www.thestandard.com.hk/news_detail.asp?we_cat=2&art_id=153909&sid=43813822&con_type=1&d_str=20150203&fc=2

Bleak restart for Chaoda Modern shares
Tuesday, February 03, 2015
Shares of Chaoda Modern Agriculture (0682) slumped 45.45 percent to HK$0.60 yesterday after it resumed trading after being suspended for more than three years.The stock had a turnover of HK$241.39 million. The Fujian-based food maker said it lost HK$1.94 billion in the year ended June 30 of 2014, much less than the HK$3.22 billion lost in 2013. Annual revenue fell 36.05 percent to HK$1.46 billion. It expects to record 20 to 30 percent of year-on-year loss for the six months ended December 31 of 2014, due to low demand for the products and the writing off of prepaid premium for certain land leases. On September 26 of 2011, the financial secretary said the government was investigating its chairman Kwok Ho, chief financial officer Andy Chan Chi-po and another individual on market misconduct, including insider trading. At the same time, research firm Anonymous Analytics published a 38-page report alleging Chaoda’s management transferred US$400 million (HK$3.12 billion) capital from the firm through exaggerating the capital expenses or forging transaction records. The firm did not fight back against the accusation until July 2013, saying that the allegations were untrue. JENNIFER LI

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