http://english.caixin.com/2015-04-03/100797361.html

04.03.2015 12:26

Glitch in Rongsheng Rescue Sheds Light on Shady Investor; Capital market veteran Wang Ping had sights set on struggling shipbuilder, but has been detained on fraud charges

By staff reporter Yu Ning and Hong Kong correspondent Wang Duan

(Beijing) – The detention by police of a capital market veteran has interrupted the restructuring plans of China’s largest private shipbuilder and shed light on the tricks used by an investor who seems to have always profited from distressed companies. In early March, debt-ridden shipbuilder Rongsheng Heavy Industries Group Holdings cancelled a planned 3 billion yuan warrant issuance to the private equity firm Kingwin Victory Investment Ltd. Continue reading →

http://www.moneylife.in/article/stock-manipulation-twentyfirst-century-management-services/41039.html

Stock manipulation: Twentyfirst Century Management Services

2 April 2015

Moneylife

The stock price of Twentyfirst Century Management Services is up 926%. The stock averages just about 75 trades a day, with an average daily turnover of only Rs6 lakh

Twentyfirst Century Management Services (TCMS) is apparently engaged in trading and investment in Indian capital markets. In 1998, its registration as a merchant banker was revoked for not exercising due diligence. In 2008, TCMS was suspended from trading due to non-compliance with the listing agreement. TCMS cites poor market conditions for its poor financial performance in the past few years. Because of low retail participation, TCMS withdrew the broking services offered by its subsidiary Twentyfirst Century Shares and Securities and surrendered the trading membership of the NSE. It reported marginal revenues and a net loss in past few years. But, suddenly, over the past few quarters, its fortunes changed. For four quarters ended December 2014, it generated revenues of Rs19.35 crore while net profit amounted to Rs14.87 crore. The stock price is up 926% to Rs39 (on 20 March 2015) from Rs3.80 on 19 March 2014. The stock averages just about 75 trades a day, with an average daily turnover of only Rs6 lakh. Not suspicious enough for the regulator, despite the stock’s vertical trajectory?

http://www.scmp.com/print/business/china-business/article/1754612/chinese-sewage-treatment-firm-sound-globals-credit-ratings

Chinese sewage treatment firm Sound Global’s credit ratings cut on weak governance

Thursday, 02 April, 2015, 10:01pm

Eric Ng eric.mpng@scmp.com

Ratings agencies have downgraded mainland sewage treatment firm Sound Global, citing governance deficiencies and internal controls concerns.

This comes two days after the Beijing-based firm said it had “potential audit issues” and would set up an independent review committee that might engage forensic accountants to look into them, despite denying recent allegations from research firm Emerson Analytics that it had faked and inflated revenues in the past few years. Continue reading →

Related posts: (1) Related posts: Qinfa (866 HK): Belated Audit Qualification on Accounting Tunneling Fraud (Auditor KPMG) (2) Open Letter to SGX/MAS: Reply to CFO of SGX-Listed China Environment (CENV SP) on report “Potential Accounting Tunneling Fraud at China Environment?” – Address the accounting and governance concerns in an SGX/MAS announcement

(873) China Taifeng Beddings Holdings Limited: China Taifeng Beddings Holdings Limited delayed announcing its annual results to on or after 21 April 2015.

DELAY IN PUBLICATION OF THE 2014 ANNUAL RESULTS ANNOUNCEMENT The Board wishes to inform the Shareholders the reasons for the delay include that the Company needs more time to ascertain (a) the fair value of the financial guarantee contracts given to banks on certain borrowings of its subsidiary, Shandong Taifeng Textile Co., Ltd. (“Shandong Taifeng”) given to independent third parties; (b) the fair value assessments of the estimation of the recoverable amounts of the Group’s assets which may be impaired as a results of the latest financial position of the Company which will not be available by 31 March 2015; and (c) auditor of the Company has indicated that more time is required to ascertain the cash flow position of the Company and carry out additional work in order to finalise the audit of the consolidated financial statements of the Group for the year ended 31 December 2014 as a result of the latest situation of the Company including the liquidity position of the Company as disclosed in the Company’s announcement dated 12 December and 15 December 2014 respectively. As a result, the publication of the 2014 Annual Results will be delayed, which delay constitutes non-compliance with Rule 13.49(1) of the Listing Rules. The Board and the management of the Company are doing their utmost to assist and cooperate with the Auditors so that the 2014 Annual Results can be available as soon as practicable.

NON-PUBLICATION OF MANAGEMENT ACCOUNTS Rule 13.49(3) of the Listing Rules provides that where an issuer is unable to issue its preliminary results, it must announce its results based on the financial results which have yet to be agreed with the auditor (so far as the information is available). The Board has decided, after due and careful consideration, that it would not be appropriate for the Company to publish the unaudited management accounts of the Group for the year ended 31 December 2014 (the “2014 Unaudited Management Accounts”) at this time as it is expected that there may be significant adjustment on the 2014 Unaudited Management Accounts and hence the 2014 Unaudited Management Accounts do not truly and fairly reflect the financial performance and position of the Group. The Board is therefore of the view that the publication of the 2014 Unaudited Management Accounts at this time would be misleading and confusing to the Shareholders and potential Investors.

http://www.bloomberg.com/news/articles/2015-04-01/china-investors-face-wake-up-call-in-sound-global-slide

China Investors Face Wake-Up Call in Sound Global Slide

byLianting Tu

April 1, 2015

(Bloomberg) — A Beijing-based water treatment company is fueling concern about corporate-governance risks in China as its bonds fall by a record after it flagged potential audit issues.

Sound Global Ltd.’s U.S. currency 2017 notes slid 22.3 cents to 68 cents on the dollar as of 5:10 p.m. in Hong Kong after it said in a filing Tuesday that audit work will be continued as issues are not resolved. The debentures have tumbled from 108 cents at the beginning of the year, after research firm Emerson Analytics Co. alleged in February Sound Global exaggerated revenue.

Continue reading →

(2083) China Flooring Holding Company Limited: Nature Home Holding Company Limited issued profit warning for the year ended 31 December 2014 due to the recognition of a substantial decrease in fair value of the Group’s biological assets.

Related: Late audits halt trading in Morgan Stanley-backed stocks Tianhe Chemicals (1619 HK) and Sihuan Pharmaceutical (460 HK)

http://www.wsj.com/articles/hanergy-is-still-a-head-scratcherheard-on-the-street-1427785577

Hanergy Is Still a Head Scratcher

ABHEEK BHATTACHARYA

Updated March 31, 2015 4:44 a.m. ET

For anybody who expected big numbers out of the world’s most valuable clean energy company, Hanergy Thin Film Power didn’t disappoint. The Chinese solar company whose shares have vaulted 450% in the past year reported late Monday that its 2014 revenue nearly tripled, and net profit rose 64%. As common as these numbers might start to look, though, they are still strange. Hanergy makes equipment to build niche kinds of solar panels that are either so inefficient that they have been abandoned by peers, or so new that the economics are untested. How this business commands a $36 billion market value, more than Tesla’s, raises doubts.

A closer look at Hanergy’s 2014 results keeps raising doubts, too. Out of $1.2 billion of revenue in 2014, 62% comes from selling equipment to its closely held parent, Hanergy Holding Group, who then builds solar panels. But much of what goes to the parent seems to come back, since between 2015 and 2017, the parent plans to sell panels back to listed Hanergy worth as much as $6.1 billion, according to separate filings in February. Continue reading →

This report categorizes the companies as below based on their outstanding issues and the Listing Rules requirements.

1. Companies that are in severe financial difficulties and/or have ceased to maintain sufficient operations and are in delisting procedure (PN 17 companies);
2. Companies which have identified irregularities and/or are under regulatory investigation;
3. Companies which have failed to publish financial results and/or identified material internal control weaknesses

Continue reading →

http://www.scmp.com/print/business/companies/article/1752219/shipbuilder-rongsheng-reports-38-billion-yuan-negative-revenue

Shipbuilder Rongsheng reports 3.8 billion yuan in negative revenue

Tuesday, 31 March, 2015, 9:23am

Jing Yangjing.yang@scmp.com

Embattled shipbuilder China Rongsheng Heavy Industries reported 3.8 billion yuan (HK$4.7 billion) in negative revenue for last year, and a precarious balance sheet with 18.2 billion yuan in borrowings immediately payable. Continue reading →

(555) Rexlot: REXLot Holdings Limited issued profit warning for the year ended 31 December 2014 due to impairment loss of goodwill and intangible assets, which relate to the Group’s operating unit engaged in the internet lottery distribution services in China. The board has resolved to deconsolidate the PRC Company and treat it as a long term investment of the Group. The PRC Company will be reclassified as an available-for-sales financial asset in the Group’s consolidated management accounts from 1 January 2014 onwards. The Board has therefore resolved to reclassify the PRC Company as an available-for-sales financial asset from 1 January 2014 onwards rather than to make corresponding adjustments.