Lixil’s overseas ambitions hit snag amid accounting probe; Grohe subsidiary Joyou was an important part of the emerging-market strategy laid out by Lixil President Yoshiaki Fujimori

http://asia.nikkei.com/print/article/94375

http://asia.nikkei.com/print/article/94513

May 22, 2015 1:31 am JSTTrouble in China

Lixil’s overseas ambitions hit snag amid accounting probe

TOMOKO WAKASUGI and SO MATSUI, Nikkei staff writers

Grohe subsidiary Joyou was an important part of the emerging-market strategy laid out by Lixil President Yoshiaki Fujimori, right.

TOKYO — Accounting irregularities at a German unit that operates in China pose an unexpected obstacle to Lixil Group President Yoshiaki Fujimori’s efforts to boost the Japanese company’s overseas sales to more than 1 trillion yen ($8.19 billion) by fiscal 2020.

The Tokyo-based company acquired Germany’s Grohe, a maker of high-end faucets used in famous hotels around the world, in 2014, giving it a 72% stake in Grohe subsidiary Joyou. Although Lixil had bought Grohe to gain a foothold in Europe, Joyou, with its roughly 4,000 Chinese stores, was key to Lixil’s emerging-market strategy. It apparently logs annual sales of around 50 billion yen a year. Continue reading

Joyou AG, a Chinese affiliate of German bathroom manufacturer Grohe, has collapsed from record highs as a €400 Million company a week ago to 0, pending bankruptcy, after admitting balance sheet manipulation.

http://www.zerohedge.com/news/2015-05-21/chinese-virus-spreads-germany-meet-company-went-record-high-zero-1-week

http://www.reuters.com/article/2015/05/22/idUSASM000A7F20150522

Chinese ‘Virus’ Spreads To Germany: Meet The Company That Went From Record High To Zero In 1 Week

Tyler Durden on 05/21/2015 13:30 -0400

It appears the frauds, falsehoods, and f##king fallacies are all being exposed at the same time. While we have noted three companies that have collapsed in the last week – destroying their billionaire owners’ wealth in the process – it appears the Chinese capital destruction virus has spread to Germany. Joyou AG – a Chinese affiliate of German bathroom manufacturer Grohe – has collapsed from record highs a week ago to 0, pending bankruptcy, after admitting balance sheet manipulation.

The following ‘real company’ employs over 4000 people in Nan An, China. Jianping “Dorothy” Wu is the CFO. It was a €400 Million company a week ago… And this just happened…

Joyou1 Continue reading

Hong Kong Investors Want More Oversight After $35 Billion Wipeout

http://www.bloomberg.com/news/articles/2015-05-22/hong-kong-routs-that-wiped-out-35-billion-spur-oversight-calls

Hong Kong Investors Want More Oversight After $35 Billion Wipeout

byBelinda CaoKyoungwha Kim

May 22, 2015

After $35 billion in market value was erased from three Hong Kong-listed companies over two days, investors are asking if the city’s regulator should have done more to prevent the sudden selloff.

Goldin Financial Holdings Ltd. and Goldin Properties Holdings Ltd., controlled by billionaire Pan Sutong, plunged more than 40 percent Thursday. A day earlier, Hanergy Thin Film Power Group Ltd. tumbled 47 percent in 24 minutes before trading in the Chinese solar company’s shares was suspended. The stocks, which had surged at least 500 percent in the 12 months before the rout, can also be bought and sold by mainland investors through an exchange link. Continue reading

Toshiba extends accounting probe to three more business units in its TV, computer and chip businesses

http://www.reuters.com/article/2015/05/22/us-toshiba-probe-idUSKBN0O703720150522

Fri May 22, 2015 12:21am EDT

Toshiba extends accounting probe to three more business units

Japan industrial conglomerate Toshiba Corp said on Friday it would investigate accounting practices in its TV, computer and chip businesses, extending a probe already under way into irregularities that led to profits being overstated by at least $415 million in recent years. Continue reading